Abstract

An increase in overall economic activity and income can lead to an increase in per capita spending. This is related to increasing people's purchasing power. One industry that is experiencing growth and can expand its market share is retail companies. Where children's toy retail companies are one sector that has a big opportunity to reach a large market. Specific inventory controls are required by businesses to continue operating. Stores have difficulty tracking inventory accurately when their inventory systems are deficient. Specific inventory control is required by the business. Therefore, it is vital for businesses to manage their inventory efficiently if they want to avoid excess stock and reduce its negative impact on the operations of the entire organization. The aim of this research is to create an adequate inventory policy for one of the retail toy stores based on its characteristics. Inventory policy is determined by categorizing commodities using integrated ABC and FSN classification methods. By combining these approaches, you can make better decisions in inventory management, focus on products that provide the greatest financial impact and meet customer demand more effectively in order to develop better and more efficient inventory management strategies.