Analysis of commodity inventory with exponential smoothing and silver meal algorithm (Case study)

Perum Bulog is one of State Owned Enterprises (SOE) Indonesia, which was built with the purpose of organizing the logistics business with food quality and adequate for fulfilling lives of many people. Therefore, Perum Bulog must be able to manage the supply of main food commodities. However, there are some obstacles infrequently occur that cause inventory management becomes impaired. Weather and natural disasters become factors of considerable influenced. These factors forced Bulog to find ways/methods that capable of maintaining the stability of the stock and minimize the possibility of additional operating expenses. The purpose of this study is to investigate the calculation of stock value in the particular of safety stock, reorder point, and lot sizing with exponential smoothing forecasting methods and Silver Meal algorithm, then determine the best method in accordance with Perum Bulog conditions.