| Summary: | You Dare is a Small and Medium Enterprise (SME) engaged in fashion, namely the sale of shoes. The problems that occurred in Dare are their limit on the amount of the shoes supply from suppliers and the inventory allocation policies are unplanned, so the profit is not maximized. This study simulates inventory allocation policy that Dare applies to see the impact on profits of Dare then proceed with the design of new system scenarios. The new scenario aims to implement policies more appropriately to increase the profits of Dare. Simulations are performed with ProModel software.The results of this study indicate that the policy of only using intuition cannot maximize the profits. An appropriate policy to increase profits of Dare is to consider the demand and cost allocation. Based on simulation results, Dare will only have an average profit of IDR 52.187.000, whereas if Dare uses the proposed policy, the average profit will increase to IDR 55.948.000 within two years.
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