You have been recently hired as a regional product manager at Bogasari for Jabodetabek area. Your staff just told you that, based on her forecasting, the average daily demand is 1,464 kgs. She said that your current EOQ is 65,509 kgs. When your inventory level reaches 58,858 kgs, then you have to reorder again. To avoid the stock out during lead time period, the company must have a safety stock of at least 300 kgs. This is based on average demand data in the last 3 years. The thing is that your current production capacity is way lower than the aforementioned EOQ due to the pandemic. Consequently, your production cost is increasing but your demand is decreasing, and you will always be out of budget. Clouding matters further, pandemic is not over yet. Your director specifically wants to avoid excess inventory in the regional warehouse and streamline the process. It is suspected that there are too much non-value-added process and too much time wasted in the inventory. Your director also said that your inventory warehouse currently has longer lead time compared to other warehouses. What is actually the problem here? What are you going to do to solve the problem?