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Retail Business is continuously growing. Inventory is the key factor for business to respond to customer demand quickly. Effective Inventory management is necessary in strengthening the retail business. However, with uncertain demand which is the nature of retail business, it is daunting task to control the inventory at appropriate level. Overstock causes high total inventory cost while understock leads to low service level. This research focuses on inventory management with periodic review control which is the common policy deployed by retail business. Periodic review system (R, S) and Hybrid System (R, s, S) with Revised Power Approximation Rules are compared. The Revised Power Approximation Rules is effectively compute the value of s and S. The comparison used the data from a big retail business company for case study which has many branches and products items. The test has been conducted with top sale value for 59 product items. It was found that the Hybrid System with Revised Power Approximation Rule excels other methods in both total cost and service level.
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