The purpose of this research is to conduct an analysis on demand characteristic and
inventory cost which might potentially influence the determination of base-stock level.
Appropriate base-stock level will determine the maximum profit and also reduce the stockout
cost for fashion products which has high demand uncertainty and single order problem. Case
study is applied on a garment company with eight fashion product types that can be classified
into short and long lifetime. The effect of coefficient variation, salvage price and stockout cost is
analyzed towards profits and base stock level. It can be concluded that demand variability does
not affect base stock level, while stockout cost and salvage price does.