Golden Battery is an automotive battery retailer that sells up to 400 new batteries
in a month. There are more than 5 brand batteries and each brand has more than
30 types. In the transaction process, end-user often bring their used battery and
do trade-in so that they get discount from Golden Battery, the returned battery will
be stored in the inventory before they are sold to the third-party collector. There is
a trade-off in determining used battery sales. Used Battery can give additional
revenue if they are sold when the lead (Pb) price is high, but waiting the high lead
price can cause others problem such as the limited space of the inventory and the
government regulation.
Based on the problem, inventory control model is chosen as the solution to manage
the inventory which able to determine the optimal revenue and minimize cost for
Golden Battery. The inventory control model is built based on literature review
model. The first step is collecting the data that influence in the problem. Next,
adjusting the logistic system in the real case to the literature review model by
defining the role and function from all distribution channels. The formula from the
literature review model will determine the optimal quantity to get higher profit. The
next step is building a new alternative scenario for inventory system to decrease
the holding cost. Then, comparing the scenario and choose the best result. The
chosen inventory scenario is the best method to manage the inventory that gives
the best profit for the retailer.