15 CHAPTER III RESEARCH METHODOLOGY The research methodology is a systematic, theoretical analysis of the methods applied to a field of research of case study. The author used a systematic methodology uniquely to assess the research problem of the case. The research methodology is required to get a systematic research and to have a clearly directed research. To accomplish just that, the author has developed a conceptual framework to describe the methodology of how the data will be processed and analyzed. The problem within PT Idola Cahaya Semesta retail stores is how to manage inventory, which is to determine how much to order to avoid costs of over stocking and under- stocking. Especially the biggest and fastest selling product category that is stationary goods, in the form of retail store that is not just focused on selling office supplies, rather in a larger non-food convenience store that sells other goods like toys and baby supplies. In order to find solutions for the research problems, the authors use the following research design: Background Problem Identification Objectives Model Development Data Collection and Analysis Conclusion and Recommendation Previous Research 16 3.1 Background Conducting preliminary studies is the first step that the authors took, doing preliminary studies is vital to determine the background of the research problems. The authors visited the company personally and try to identify the company itself, how the company works, and kinds of problems the company faced. This phase is an important step so the data that would be analyzed and processed further can be recognized. 3.2 Problem Identification Problem identification is generated from the preliminary studies by doing interviews, observations, and being given the data from the procurement manager of the company. PT Idola Cahaya Semesta has several main issues, those are: 1. Under-stocking 2. Overstocking To be more efficient in the research, the scope and the limitation of the problem is also determined in this phase. 3.3 Objectives 1. To find the ideal amount of order size to buffer the stock 2. To find a new strategic approach in the inventory management from the existing one to ensure better 3.4 Data Collection and Analysis Data collection is the genesis of the research, by collecting the inventory data of the past year which is the year 2015, the author could analyze the current inventory management system of PT Idola Cahaya Semesta to make calculations and suggest recommendations for the company. The required data includes: 1. The sales report of the company each month for a year for the selected goods 2. The purchase price of each selected goods 3. The selling price of each selected goods 17 4.