Efficient inventory management is a crucial aspect that companies must consider to reduce unnecessary costs. XYZ CORP, a fertilizer company, currently faces an issue of packaging bag overuse. The aim of this study is to identify the root causes of this issue and provide solutions to mitigate it. Furthermore, the proposed solutions will be simulated to evaluate their effectiveness, along with a calculation of the costs and benefits for the company. The research methodology includes Root Cause Analysis, incorporating the 5 Whys approach, and various inventory management methods such as Safety Stock, Just-in-Time, Bin Size, and Reorder Point. Data for this study is derived from the company's historical data and interviews with relevant parties. The results reveal a true occurrence of packaging bag overuse at XYZ CORP, amounting to a total of 180 bales of packaging bags or equivalent to 90,000 pieces. The application of Safety Stock, Bin Size, and Reorder Point in Proposed Improvement 2 proves beneficial to the company, both in optimistic and pessimistic scenarios. In optimistic conditions, the implementation of Proposed Improvement 2 yields a profit of Rp 388,750,000, while in pessimistic conditions, it still results in a profit of Rp 92,750,000.