Economic order quantity

We model a risk-averse newsvendor's decision-making behavior with some commonly used classes of utility functions within the expected utility theory (EUT) framework. Under fairly general conditions of EUT, we show that a risk-averse newsvendor will order less than an arbitrarily small quantity as selling price gets larger if price is higher than a threshold value, i.e., the optimal order quantity decreases as the selling price increases.

The economic order quantity (EOQ) model is a pure economic model in classical inventory control theory. The model is designed to find the order quantity so as to minimize total cost under a deterministic setting. In this study, we revise the standard EOQ model to incorporate sustainability considerations that include environmental and social criteria in addition to the conventional economic considerations. We propose models for a number of different policies and analyze these revised models. Based on our analysis, we show how the triple bottom line considerations of sustainability be appended to traditional cost accounting in EOQ model. We also provide a number of useful insights for decision and policy making practices.

This study develops a generalized finite-horizon inventory model that integrates complex demand patterns, deterioration, seasonal effects, and stochastic variability within a Monte Carlo-based simulation framework in MATLAB. The model incorporates fixed, holding, procurement, deterioration, transportation, backordering, and lost sales costs, enabling comprehensive cost evaluation. Simulation results show that deterioration and seasonality significantly affect optimal replenishment cycles and order quantities, and that the model yields robust cost estimates under uncertainty. Sensitivity analysis further indicates that the base demand rate has the strongest effect on cost outcomes, followed by procurement and backorder costs, whereas seasonality and holding cost parameters exhibit negligible influence.

This research aims to design and implement a web-based inventory
management information system using the Safety Stock and Reorder Point methods for Saba Watch Indonesia. The system is designed to optimize inventory management by reducing the risk of overstocking or understocking. The research employs a system design methodology that includes needs analysis, system design, implementation, and evaluation. The data used in this study are transaction data of sales and purchases at Saba Watch Indonesia. Based on this data, Safety Stock and Reorder Point calculations are performed for each product sold. The results of these calculations are then integrated into the designed inventory information system.  Evaluation results indicate that the implemented system is capable of improving operational efficiency by reducing errors in inventory recording and assisting in decision-making related to stock management. With this system, Saba Watch Indonesia can be more proactive in managing its inventory, thereby better meeting customer demands.

Constant unit procurement cost is one of the main assumptions in the classic inventory control policies. In the realistic world and practice, suppliers sometimes face increase in the price of a known item. In this paper, an inventory model for items with a known one-time-only price increase under fuzzy environment is presented by employing trapezoidal fuzzy numbers to find the optimal solution. We developed three different policies on the basis of methods such as α-cuts, for defuzzification of internal parameters before solving the model, and Vujosevic, for difuzzification of the external parameters after solving it. In the first policy, we integrated α-cuts method and Parametric Non-Linear Programming (PNLP) problems to attain the Membership Functions (MFs) of external variables in the primary model for achieving the optimal solution. These variables were reached by internal parameters through two-phase maximum/minimum non-linear programming problems and the external variables were approximate fuzzy numbers. Under the other two policies, we used defuzzification techniques of Centroid of Gravity (COG), Signed Distance (SD), and the Maximum Degree of Membership (MDOM) to attain crisp numbers. The optimal order policies by the three methods were compared and numerical computations showed that the efficiency of the first method (i.e., the presented one) was considerably better than that of the other two methods. In fact, the first method selected the optimal and attractive strategies by allocating membership functions to different α-cuts and provided the Decision Maker (DM) with great information to decide and select the best strategies. The methods were validated by a numerical example. The main aim of this model was determining the special ordering range and net costs saving quantity (involving ordering, holding, and purchasing costs). The time of ordering for positive net costs saving was calculated.

To establish an efficient and realistic inventory system, it is essential to consider real-world complexities such as the presence of imperfect items and errors in quality classification. This study develops a novel Economic Production Quantity (EPQ) model that incorporates a two-stage quality screening process with both Type-I (false rejection) and Type-II (false acceptance) inspection errors. Scenario-based sampling inspection plans-including full inspection, no inspection, and lot rejection-are integrated into the decision-making process. A stochastic analytical framework is formulated using renewal-reward theory, and closed-form expressions for expected profit are derived under each inspection policy. Numerical results demonstrate that the proposed combined strategy significantly outperforms fixed inspection approaches in terms of profitability. Sensitivity analysis confirms the robustness of the model across a range of system parameters. These findings offer practical implications for industrial managers seeking to optimize quality control and inventory decisions under uncertainty.

The COVID-19 pandemic has significantly disrupted global business operations, causing challenges in supply chain management, particularly for perishable and deteriorating items. This study develops an Economic Order Quantity (EOQ) model for non-instantaneous deteriorating products, where demand is dependent on selling price. The model incorporates deterioration costs and salvage value, providing a realistic framework for inventory management during uncertain conditions. To handle uncertainty, triangular intuitionistic fuzzy numbers (TIFNs) is implemented and for defuzzification the centroid method is used. A numerical example validates the model, and sensitivity analysis demonstrates its robustness across various parameters. This model offers valuable insights for optimizing order quantity and minimizing total costs in the context of pandemic-induced disruptions. The primary objective is to optimize overall costs and determine an optimal cycle, order quantity under fuzzy environment.

This paper proposes a fuzzy multi-period newsvendor model with pre-season extension for innovative products. The demand of the product is represented by fuzzy numbers with triangular membership function. The holding and shortage cost parameters are considered as imprecise and also represented by triangular fuzzy numbers. As the selling season draws closer, suppliers lead times shortens and thus production costs increase. In contrast, caused by the oncoming selling season, demand fuzziness decreases and more accurate demand forecasts can be maintained that lead to lower overage/underage costs. The objective of the model is to find the best order period and the best order quantity that will minimize the fuzzy expected total cost. The model is experimented with an illustrative example and supported by sensitivity analyses.

This manuscript explores the critical role of optimization methods in addressing various challenges associated with inventory management. Effective inventory management is essential for maintaining operational efficiency, minimizing costs, and enhancing customer satisfaction. This paper provides a comprehensive review of key optimization techniques, including Economic Order Quantity (EOQ)[1], Just-In-Time (JIT)[2], ABC analysis[9], dynamic programming[4], and machine learning[5], among others. Each technique is discussed in the context of specific inventory problems, such as stockouts, overstocking, demand variability, and lead time uncertainty. Through detailed analysis and case studies, the manuscript demonstrates how these techniques can be applied to real-world scenarios to optimize inventory levels, reduce costs, and improve overall supply chain performance. The findings highlight the importance of selecting appropriate optimization methods based on the unique characteristics of the inventory problem at hand, offering valuable insights for both practitioners and researchers in the field of supply chain management.

This manuscript explores the critical role of optimization methods in addressing various challenges associated with inventory management. Effective inventory management is essential for maintaining operational efficiency, minimizing costs, and enhancing customer satisfaction. This paper provides a comprehensive review of key optimization techniques, including Economic Order Quantity (EOQ)[1], Just-In-Time (JIT)[2], ABC analysis[9], dynamic programming[4], and machine learning[5], among others. Each technique is discussed in the context of specific inventory problems, such as stockouts, overstocking, demand variability, and lead time uncertainty. Through detailed analysis and case studies, the manuscript demonstrates how these techniques can be applied to real-world scenarios to optimize inventory levels, reduce costs, and improve overall supply chain performance. The findings highlight the importance of selecting appropriate optimization methods based on the unique characteristics of the inventory problem at hand, offering valuable insights for both practitioners and researchers in the field of supply chain management.

This research aims to produce compatibility between the policies of Abon Surya with the Economic Order Quantity raw material control method, namely the purchase quantity of the Abon Surya policy has an average purchase of 770 kg, for the frequency of purchasing raw materials for jack beans 5 times, for security and point supplies. There is no reordering policy with a total inventory cost of IDR 251,640. Meanwhile, the EOQ method has an average purchase of 1,313 kg. the purchase frequency is only 3 purchases, the security inventory is 90 Kg and the number of reorders is 204 Kg with a total cost of inventory required of IDR 173,254. The cost difference between Abon Surya and the EOQ method is IDR 78,386,417. This shows that there is a saving or reduction in the total cost of inventory needed if Abon Surya can implement the EOQ raw material control method. Apart from that, the packaging used at UMKM Surya Abon for shredded products still uses transparent plastic with stickers, which is less attractive to buyers. Therefore, a new design is needed to attract more buyers.

The inventory of raw materials or materials at PB Giri Jaya Putra is not well planned, so the raw materials run out during the production process. The company also does not pay attention to the quantity and reorder point of raw materials. Thus, costs that should not be needed increase, which means that they are not effective and efficient. As a result, PB Giri Jaya Putra decided to apply the quantity demand economics method in raw material management. The purpose of this study is to find out how the application of the quantity demand economic method (EOQ) in raw material stock management in PB Giri Jaya Putra. This research uses quantitative methods with the object of research in PB Giri Jaya Putra. The company's inventory data from 2022-2023 was used as a research sample, which was taken by purposive sampling method. The results showed that the cost has decreased by 59% from by saving Rp. 20,213,212.95. The results showed that the EOQ method played a significant role in controlling the availability of raw materials in PB Giri Jaya Putra. Persediaan bahan baku atau material pada PB Giri Jaya Putra tidak direncanakan dengan baik, sehingga bahan baku habis selama proses produksi. Perusahaan juga tidak memperhatikan kuantitas dan titik pemesanan kembali bahan baku. Dengan demikian, biaya yang seharusnya tidak diperlukan meningkat, yang berarti tidak efektif dan efisien. Akibatnya, PB Giri Jaya Putra memutuskan untuk menerapkan metode ekonomi permintaan jumlah dalam pengelolaan bahan baku. Tujuan dari penelitian ini adalah untuk mengetahui bagaimana penerapan metode ekonomi permintaan jumlah (EOQ) dalam manajemen stok bahan baku di PB Giri Jaya Putra. Penelitian ini menggunakan metode kuantitatif dengan objek penelitian di PB Giri Jaya Putra . Data persediaan perusahaan dari tahun 2022-2023 digunakan sebagai sampel penelitian, yang diambil dengan metode purposive sampling. Hasil penelitian menunjukkan bahwa biaya telah turun sebesar 59% dari dengan menghemat Rp. 20.213.212,95. Hasil penelitian menunjukkan bahwa metode EOQ memainkan peran yang signifikan dalam mengontrol ketersediaan bahan baku di PB Giri Jaya Putra.

Abstrak ___________________________________________________________________ Tujuan penelitian ini adalah untuk mengimplementasikan pengoptimalan biaya transportasi dengan metode transportasi yaitu north west corner method (NWCM) dan stepping stone method (SSM) ke dalam sebuah program. Metode perancangan dan pengembangan program NWCM dan SSM menggunakan model waterfall. Objek yang diteliti yaitu program NWCM dan SSM dengan uji keberfungsian program menggunakan uji black box, uji perbandingan 39 data dengan program standar yaitu QM for windows dan uji data kasus menghitung biaya optimal dengan dengan program yang dibuat pada Perum Bulog Sub Divre Semarang bulan Februari 2015. Hasil penelitian secara signifikan menunjukkan bahwa hasil perhitungan antara program NWCM dan SSM dengan program QM for windows sama. Hasil perhitungan dengan program NWCM dan SSM membuktikan bahwa biaya transportasi lebih optimal daripada biaya yang diperhitungkan oleh Perum Bulog Sub Divre Semarang, sehingga d...

Persediaan bisa diartikan sebagai material yang dimiliki oleh suatu organisasi dalam waktu tertentu. Samsung Service Centre Cabang Malang merupakan perusahaan dengan sistem make to order (MTO) yang melayani permintaan perbaikan dan penjualan suku cadang dengan bahan baku suku cadang yang berasal dari Samsung pusat. Penelitian ini dilakukan berdasarkan adanya indikasi bahwa terjadi penumpukan suku cadang untuk periode yang lama yang mengakibatkan ketidakefisienan perusahaan. Dalam penelitian ini akan dilakukan perhitungan mengenai inventory turnover rate dan inventory days of supply dari suku cadang. Dari perhitungan inventory turnover rate dan inventory days of supply kemudian melakukan pengklasifikasian dengan metode ABC dan analisa serta evaluasinya untuk memilih bahan baku yang akan diteliti. Tujuan akhir penelitian ini adalah merancang suatu pengendalian persediaan yang lebih efisien yang bisa diukur dari penurunan inventory days of supply atau peningkatan inventory turnover rat...

Inventory control is critical because the inability to overcome inventory problems causes unpreparedness to meet consumer demand. MSMEs Bekawan Agro Coconut Sugar, independently around 35% -70%, cannot meet consumers' demand for coconut sugar, so an inventory control model is needed. Inventory control models must integrate with demand forecasting as an inventory control input. This study aims to integrate the demand forecasting model with the inventory control model. The method used for demand forecasting is ARIMA. The inventory control model uses a modified EOQ hybrid method because coconut sugar products have a shelf life; they also use coconut sap as raw material, which must be processed to prevent fermentation. The research results show that demand forecasting for one year ahead is a total of 10,310.82 Kilograms with an economic lot size of 120 Kilograms and a reorder point when the inventory position is 30 Kilograms. Daily production of 30 kilograms requires 210 litres of coconut sap/per day. The amount of sap needed requires 105 coconut trees / per day. Arrival time of coconut sugar at the storage warehouse every five days. The resulting model can be a solution for sustainable MSMEs.

ABSTRAK Persediaan barang dimaknai sebagai barang yang diperoleh perusahaan buat dijual kembali atau diolah lebih lanjut dalam rangka menjalankan kegiatan perusahaan. Tanpa adanya persediaan, perusahaan akan dipertemukan pada suatu resiko dimana perusahaan mengalami kendala karena tidak dapat memenuhi keinginan pelanggan yang membutuhkan barang maupun jasa yang dihasilkan oleh perusahaan tersebut. PT. Daya Muda Agung yaitu sebuah perusahaan farmasi yang bergerak di bidang distribusi obat yang mendistribusikan ke berbagai rumah sakit atau apotik. Dari kegiatan distribusi yang dilakukan perusahaan, ditemukan beberapa jenis obat yang mengalami kelebihan persediaan hingga berdampak pada kadaluarsa. Pengendalian persediaan obat bertujuan buat menciPT.akan keseimbangan antara persediaan dengan permintaan. Buat itu, perusahaan harus memliki suatu metode perencanaan dan pengendalian persediaan obat. Bagian dari metode tersebut dikenal dengan Economic Order Quantity (EOQ). Economic Order Qua...

This work provides an overview of inventory with the intention of using decision model to analyze and evaluate inventory in small and medium scale industries with the aim of optimizing it. The data obtained from the case company, inventory control models were applied to enhance the inventory control system. Based on the models applied, the following results were developed for the aforementioned company's analysis; the economic ordering quantity, reordering points, lead time, consumption rate and costs of the raw materials.The results reveal a standard system for inventory control to the case company. It also develops a standard for similar case study for its use and applicability in other to eliminate and/or to reduce the inventory control and production planning problems. The techniques applied will help manufacturing industries in general and the case study company to reduce running cost, effective utilization of the inventory control system and appraisal of the production planning system.

It is normally observed in real life that the volume of stocked items have motivational effect on customers. Stores with large amount of displayed items attract buyers more than stores with scanty items. In this study therefore, we develop an EOQ model for linear inventory level dependent demand for items that undergo both deterioration and amelioration at the same time while at inventory level with no shortage of items. The poultry, fishery, piggery, and so on where the stock increase in weight and/or value within a short time and decrease in volume due to diseases or other factors provide good example. The model determines the best cycle length so as to minimize the overall cost. Numerical examples are given to illustrate the model and a sensitivity analysis carried out to see the effect of changes to some model parameters on the decision variables.

In marketplace, it is normally observed that the utility of some items increases with time. For instance, in breweries, the value of some stocked wine increases with time. In farms, the quantity or weight of fish, fast growing animals including broilers, sheep, and so on, increase with time. These phenomena are termed amelioration. In this paper therefore, we study an inventory model that determines the optimal replenishment decision for ameliorating items with stock dependent demand where the holding cost and the rate of amelioration are considered constants. The concept of differential and integral calculus was used to optimize the cost function to obtain numerical examples that illustrate the effects of parameter changes on the decision variables and to find the optimum number of replenishments. The model could be used by the organizations that deal with the relevant items.

A company should maintain an adequate or optimal level of inventory so that production operations can run smoothly and efficiently. What needs to be considered in this case is that the required raw materials are always available, so as to guarantee the smooth production process. However, the amount of inventory should not be too much because this will harm the company. Too much inventory will increase maintenance costs and storage costs in the warehouse. In addition, the amount of inventory that is too much can also increase the likelihood of losses due to damage and loss of quality that can reduce company profits. And vice versa, the amount of inventory that is too small will hamper the production process so that the company will suffer a lot of losses including: the machine does not work as it should, many workers are unemployed, and can even result in the cessation of the production process. This study aims to determine how the calculation of raw materials, what is the total cost...

Inventories, Transportation, Facilities are the important tools of supply chain management. Inventory is one of the key determinants of the productivity of cement industry. To effectively manage inventory levels, it is essential to consider the appropriate reorder points and the optimized ordering quantity at that reorder point. In this research work the ordering quantity and reorder points that minimizes the cost are found out using the concepts of Genetic algorithm by using the demand rate as well as the associated solution demand matrix. Routing has become one of the most important types of supply chain management tools in managing the global supply chain. Modifying the organization's capability to generate products and services in par with customer demand is the objective of facility planning. The proposed system is also used to find the optimized usage of the facility and finds the best routed supplier with minimum routing cost.

UMKM Dapur Bunga Berbintang, a business engaged in the culinary sector, serves various types of products such as boxed rice and snack boxes wet cakes which require a more effective and efficient raw material inventory control strategy. The raw materials analyzed are Thai Cassava raw materials, consisting of cassava, cornstarch, coconut milk, and pandan leaves. The problem faced by UMKM Dapur Bunga Berbintang is the inappropriate control of raw material requirements. The purpose of this study is to understand the stages of controlling Thai Cassava raw materials according to UMKM policies and the EOQ model. The method applied in this research is descriptive qualitative. The data needed in this study are the total use of raw materials, ordering costs, storage costs, order frequency, and the time to obtain raw materials. The results of the study state that the EOQ calculation purchases 39.6 kg of cassava raw materials, 403.07 grams of cornstarch, 27.731 pcs of coconut milk, and 23.77 pieces of pandan leaves. The total cost of raw material inventory applying EOQ can save IDR 448,227. The ordering frequency obtained from EOQ is 5 times a year. Safety inventory of 5 kg of cassava raw materials, 54 grams of cornstarch, 4 pcs of coconut milk, and 3 sheets of pandan leaves. And the reorder time is 30 kg of cassava, 300 grams of cornstarch, 21 pcs of coconut milk, and 21 sheets of pandan leaves. ABSTRAK UMKM Dapur Bunga Berbintang yakni sebuah bisnis yang bergerak di sektor kuliner menyajikan berbagai jenis produk seperti nasi kotak dan kue basah yang memerlukan strategi pengendalian persediaan bahan baku lebih efektif dan efisien. Bahan baku yang dianalisis yaitu bahan baku Singkong Thailand, terdiri dari singkong, tepung maizena, santan, dan daun pandan. Persoalan yang dihadapai oleh UMKM Dapur Bunga Berbintang adalah tidak tepatnya pengendalian kebutuhan bahan baku. Tujuan penelitian ini agar memahami tahapan pengendalian bahan baku Singkong Thailand menurut kebijakan UMKM dan model EOQ. Metode yang diterapkan pada penelitian ini adalah kualitatif deskriptif. Data yang diperlukan pada penelitian ini yakni total pemakaian bahan baku, biaya pemesanan, biaya penyimpanan, frekuensi pemesanan, dan waktu perolehan bahan baku. Hasil penelitian menyatakan perhitungan EOQ pembelian bahan baku singkong 39,6 kg, tepung maizena 403,07 gram, santan 27,731 pcs, dan 23,77 lembar daun pandan. Total biaya persediaan bahan baku menerapkan EOQ mampu menghemat Rp448.227. Frekuensi pemesanan yang didapatkan dari EOQ sejumlah 5 kali dalam setahun. Persediaan pengaman bahan baku singkong 5 kg, tepung maizena 54 gram, santan 4 pcs, dan daun pandan 3 lembar. Dan waktu pemesanan kembali singkong 30 kg, tepung maizena 300 gram, santan 21 pcs, dan daun pandan 21 lembar.

This study aims to compare the Economic Order Quantity and Just In Time inventory methods to determine which inventory management strategy is best for PT XYZ. Observation, documentation, and interviews are the data collection methods used in this study. EOQ Formula, Safety Stock, Reorder Point, and Just In Time Formula are the data analysis techniques used in this study. The findings show that the component cost of raw material inventory using the EOQ method, storage costs IDR 2,312/order, and total inventory costs IDR 16,775,553. The JIT method reveals that the total cost of inventory is IDR 1,798,711. An inventory system with JIT that only has an inventory cost of 1,798,711 can reduce costs by about 43% more effectively, according to JIT and EOQ studies. The findings show that the component cost of raw material inventory using the EOQ method, storage costs IDR 2,312/order, and total inventory costs IDR 16,775,553. The JIT method reveals that the total cost of inventory is IDR 1,79...

A pulp and paper company had a chemical raw materials piling-up issue, which affected its quality and increased its inventory cost. Hence, a proper inventory control policy of these is needed. This research were aimed to analyze the company's inventory control policy on its chemicals and inventory cost in the period 2012-2013 and recommend the inventory control plan for the year 2014. The lot sizing techniques of Lot for Lot, Economic Order Quantity, Least Unit Cost, and Least Total Cost were investigated and the results were compared with the company's inventory cost. The chemicals inventory cost for the year 2014 was also determined based on chemical estimates needed in the year 2014. Chemical estimates were derived from forecasted monthly pulp production in the year 2014 that obtained by the least square dummy variables regression technique using the monthly pulp production data in the period 2012-2013 and the company's Standard Operating Procedures. The results showed the company's inventory cost was 6.34% higher than inventory costs calculated by those four techniques when company failed to maintain its ending inventory to the predetermined safety stock level. Otherwise, the company could keep its chemicals control policy in the year 2014.

Pengendalian persedian bahan baku perlu dilakukan untuk meminimalkan biaya penyimpanan dan pemesanan bahan baku. Usaha Batu R/A Berlian Jaya merupakan sebuah perusahaan industri yang kegiatan utamanya adalah memproduksi paving block. Permasalahan yang sering terjadi pada saat proses produksi paving block adalah bahan baku yang tersedia dalam gudang tidak sesuai dengan kebutuhan produksi, sehingga mengganggu proses produksi yang sedang berjalan, hal ini terjadi karena belum adanya metode perhitungan ilmiah yang dapat dijadikan acuan untuk pengadaan bahan baku. Permintaan paving block di Usaha Batu R/A Berlian Jaya bersifat fluktuatif sehingga diperlukan metode khusus untuk menangani permasalahan tersebut. Heuristic silver meal merupakan salah satu metode pengendalian persediaan khusus untuk permintaan fluktuatif, dengan pendekatan heuristic yang dapat memberikan solusi mendekati optimal secara cepat dan mudah. Penelitian ini bertujuan untuk mengetahui berapa banyak bahan baku yang harus dipesan per periode untuk memenuhi kebutuhan produksi menggunakan metode heuristic silver meal dan efesiensi yang diperoleh menggunakan metode heuristic silver meal. Hasil penelitian menunjukan bahwa dengan menggunakan metode heuristic silver meal dapat mengefesiensi biaya persedian bahan baku sebesar 20,04%.

Pengendalian persediaan merupakan fungsi manajerial yang sangat penting, karena kekurangan bahan dasar yang tersedia dapat berakibat terhentinya proses produksi karena habisnya bahan untuk diproses. Sebaliknya, terlalu besarnya persediaan bahan dasar dapat berakibat terlalu tingginya beban biaya guna menyimpan dan memelihara bahan tersebut selama penyimpanan di gudang.Model Economic Order Quantity (EOQ) merupakan salah satu metode yang dapat menentukan kuantitas pesanan persediaan dan dapat meminimalkan biaya penyimpanan serta biaya pemesanan persediaan.

Material Requirements Planning is an intelligent information system and a decision maker that determines the type of raw materials, the quantity of them, and their supplying time in order to realize production schedule of products and work-in-process items in a manufacturing system. In each manufacturing system, if we split production costs into material, labor, and overhead costs, we will observe that over 60% of total production costs are related to material. Therefore, it is necessary to consider an appropriate inventory control system to manage the costs of inventory system to provide right inventory, with right quantity, at the right time, at the right price, and with appropriate quality. Lot sizing methods in previous researches do not provide feasible and operational solutions, or have parameters such as holding costs and set up costs that are not identified in financial accounts. To solve this research gap, in this paper, we presented a new lot sizing method considering two important parameters including batch size of the items and the minimum order quantity that a supplier provides for the items. Simultaneously, we designed a new production scheduling algorithm in Master Production Schedule component for a manufacturing system with k production lines and m products with n Bill of Materials for each product. At the end, we programmed our new mentioned contributions and developed Material Requirements Planning module of a Supply Chain Management system.

Caso de Harvard Business School sobre una empresa de mermeladas orgánicas que enfrenta sobreinventario por usar una lógica de producción fija basada en EOQ desactualizado. Se analiza el sistema real usado por operarios y se propone un modelo híbrido: EOQ para productos A y agrupación por tamaño para B y C. Esto permite reducir stock, liberar capital y mantener eficiencia operativa sin saturar el cuello de botella.

Companies, including PT Vale Indonesia (PTVI), generally should implement inventory control. PTVI use approximately 32,077 tons per month coal as a heating catalyst on the reducing furnace. There were several periods in 2017 and 2018 where the coal inventory exceed the safety stock and maximum stock level with the total cost of IDR 616,059,680.00 in 2017 and IDR 669,720,480.00 in 2018. In order to analyze and solve that stock problems, this research used the Lot-Sizing technique with Lot for Lot (LFL), Economic Order Quantity (EOQ), Part Period Balancing (PPB), and the Silver-Meal Algorithm (SMA) methods to obtain the demand and appropriate order time, by considering the lead time factor, safety stock, and reorder point to obtain the efficient costs. As a result, the safety stock value was 7,922 tons with reorder point 18,674 tons. The PPB and SMA methods gave the most minimum total inventory cost of IDR 437,021,589,280 and efficiency of 34.74%.

Penelitian ini dilakukan untuk mengendalikan persediaan pada PT.XYZ, dimana PT.XYZ merupakan perusahaan yang bergerak di bidang industri beton siap pakai. Selama ini perusahaan hanya menggunakan metode konvensional dalam penyediaan bahan baku. Berdasarkan data yang diamati selama satu tahun terakhir, perusahaan telah mengalami pemborosan biaya pada bahan baku dikarenakan pemesanan bahan baku yang berlebihan. Metode yang digunakan pada penelitian ini adalah metode economic order quantity (EOQ) dan period order quantity (POQ) untuk menentukan ukuran pemesanan yang tetap dan periode pemesanan yang optimal dengan meminimalkan total biaya persediaan yang mencakup biaya pemesanan dan biaya penyimpanan. Penelitian ini dilakukan dengan mengumpulkan data pemesanan dan persediaan selama satu tahun terakhir serta melakukan analisis data dengan menggunakan metode EOQ dan POQ. Hasil penelitian menunjukkan bahwa dengan menerapkan metode EOQ perusahaan mengeluarkan total biaya sebesar Rp. 219.870....

In this Paper a multi item EOQ model with stock dependent demand for deteriorating items is considered in fuzzy environment. Inventory costs such as holding cost and setup cost have been represented by exponential membership function and profit, deteriorating rate and total investment constraint are represented by linear membership functions. The model has been solved by fuzzy non-linear programming (FNLP) method. Results have been presented along with those of corresponding crisp model and a sensitivity analysis.

Consumers today use green, fresh, perishable products because of their freshness, healthfulness, and sustainability. In this article, we developed the continuous production inventory model for the producer who produces and sells fresh perishable products with the input of green efforts. There are two distinct kinds of product decay to take into account: products whose physical condition gradually deteriorates over time at a constant rate, and products whose freshness quality declines with time. Product demand is influenced by the selling price of the product, its freshness level, and its greening efforts. In order to increase the sales of inventory and enhance the profit from clearing stocks at the end of their life, we have adopted the markdown policy. Due to freshness degradation, a markdown strategy is adopted after a period of product deterioration to boost demand. The objectives of the study are to find out the optimal period for replenishment cycle time, the optimal value of greening efforts, and the optimal markdown percentage such that the producer's total profit is maximum. A numerical example is used to validate a mathematical formulation that reflects real-world circumstances. A sensitivity analysis of the parameters is done to determine the model's reliability. Some significant managerial results are provided, and the article concludes with a consideration of the future scope of related research.

A classical and important problem in stochastic inventory theory is to determine the order quantity (Q) and the reorder level (r) to minimize inventory holding and backorder costs subject to a service constraint that the fill rate, i.e., the fraction of demand satisfied by inventory in stock, is at least equal to a desired value. This problem is often hard to solve because the fill rate constraint is not convex in (Q, r) unless additional assumptions are made about the distribution of demand during the lead-time. As a consequence, there are no known algorithms, other than exhaustive search, that are available for solving this problem in its full generality. Our paper derives the first known bounds to the fill-rate constrained (Q, r) inventory problem. We derive upper and lower bounds for the optimal values of the order quantity and the reorder level for this problem that are independent of the distribution of demand during the lead time and its variance. We show that the classical economic order quantity is a lower bound on the optimal ordering quantity. We present an efficient solution procedure that exploits these bounds and has a guaranteed bound on the error. When the Lagrangian of the fill rate constraint is convex or when the fill rate constraint does not exist, our bounds can be used to enhance the efficiency of existing algorithms.

The article deals with a fuzzy inventory model for deteriorating items under a situation in which a supplier offers the purchaser some credit, proportional to the ordered quantity by purchaser. Shortages are not allowed. The effects of the inflation rate on the purchase price, ordering price and holding price, deterioration of units and permissible delay in payments are discussed in this article. A mathematical formulation is developed when inventory units are subject to fuzzy deterioration under inflation when the supplier offers a permissible delay to the purchaser if the order quantity is greater than or equal to a quantity which is specified. An optimal solution is obtained and algorithm is also given for finding the optimal order quantity and replenishment time, which gives the minimisation of the total cost of an inventory system in four different cases. The article concluded with a numerical example to illustrate the theoretical results where interdependence of parameter is studied for the optimal solution.

This reasearch's aim is to determine the raw inventory control of leather shoe in PT.Raindoz Bandunng, which will be compare with EOQ method calculation. From the result, EOQ method can calculate that the efficiency number for inventoy cost can reach 1,8%. It was compared to the total cost of raw material supply, Rp. 8.388.141,6 , through the company's policy with the frequency of raw material purchase 20 times a year. Whereas, the total cost of raw material inventory according to EOQ methodis Rp. 8.321.819,72 with the purchase frequency 16 times a year. To anticipate unexpected things, EOQ method says that PT. Raindoz Bandung should provide safety stock when the number of stock 1.043,27 score feet and then make a new reservation of raw material inventory when the number of stock is 1.216,05 score feet. With this EOQ method we can avoid "run out of stock" and "delay" iin raw material supply. This will support a smooth production process.

In this paper, we introduce about intuitionistic anti fuzzy vector spaces with respect to t-norm and t-conorm (IAFVSTC). We discuss some properties of IAFVSTC. We investigate IAFVSTC together with characteristic function intuitionistic fuzzy sets (IFS). We obtain properties of some operation and relation between IAFVSTC, and submodule of R-module which the IFS is an IAFVSTC.

Inventory control management remains a cornerstone of operational efficiency in modern supply chain systems. This study explores the Economic Order Quantity (EOQ) model, a foundational inventory control technique, by comparing its application under two distinct demand scenarios: constant and variable demand rates. This research highlights how demand variability influences optimal order quantities, total inventory costs, and decisionmaking processes through a detailed theoretical framework, mathematical analysis, and practical implications. From recent literature in operations research and supply chain management, the article provides insights into the adaptability of the EOQ model across diverse demand conditions, offering a comprehensive guide for practitioners and researchers alike.

Kedai Putu merupakan salah satu dari sekian banyak tempat kuliner yang tetap menjaga cita rasa dan kualitas pada makanan dan minuman yang dijual. Perkembangan bisnis kuliner yang sangat marak di kalangan semua lapisan masyarakat dapat dijadikan acuan untuk meningkatkan kualitas dari produk yang dijual. Bahan baku dalam pembuatan proses makanan dan minuman yang dijual harus mengutamakan cita rasa dari pelanggan yang sudah ada. Bahan baku merupakan hal utama untuk menjual produk makanan dan minuman yang dijual. Persediaan bahan baku seringkali menjadi tidak terkendali karena belum adanya sistem yang mengatur keluar dan masuknya bahan baku, sehingga menyebabkan harga yang dijual tidak sesuai dengan standar akuntansi dalam perhitungan persediaan bahan baku tersebut. Bahan baku yang tidak terpakai karena pada saat pembelian tidak memperhatikan jumlah yang tersedia maupun bahan baku yang dipakai terasa kurang karena pada saat pemakaian tidak memperhitungkan jumlahnya.Oleh karena itu, dala...

Kedai Putu merupakan salah satu dari sekian banyak tempat kuliner yang tetap menjaga cita rasa dan kualitas pada makanan dan minuman yang dijual. Perkembangan bisnis kuliner yang sangat marak di kalangan semua lapisan masyarakat dapat dijadikan acuan untuk meningkatkan kualitas dari produk yang dijual. Bahan baku dalam pembuatan proses makanan dan minuman yang dijual harus mengutamakan cita rasa dari pelanggan yang sudah ada. Bahan baku merupakan hal utama untuk menjual produk makanan dan minuman yang dijual. Persediaan bahan baku seringkali menjadi tidak terkendali karena belum adanya sistem yang mengatur keluar dan masuknya bahan baku, sehingga menyebabkan harga yang dijual tidak sesuai dengan standar akuntansi dalam perhitungan persediaan bahan baku tersebut. Bahan baku yang tidak terpakai karena pada saat pembelian tidak memperhatikan jumlah yang tersedia maupun bahan baku yang dipakai terasa kurang karena pada saat pemakaian tidak memperhitungkan jumlahnya.Oleh karena itu, dala...

Problems with economical ordering, safety stock, and when to reorder (ROP) within one year. The results of the study used the EOQ method to purchase 1,470 bottles of goods with an order frequency of 1 time per year. Based on the analysis using the EOQ method, it can maintain the stability of the customer request process. With EOQ you can also reduce the cost of saving from Rp. 1,360,000 to Rp. 1,176,000.-.

In today's market, customers need substitute goods for numerous reasons. There are several factors that influence the decision to choose a substitute product, including price sensitivity, convenience, regional availability, and individualization. Seller can improve consumer satisfaction, sales, and gain by offering substitute items. We highlighted the potential benefits of applying a cross-price selling strategy to maximize sales of high-deteriorating substitute goods. This study aim is to find the optimal selling price, order quantity, and cycle time that maximize the joint profit of two substitutable products subject to deterioration. The global optimality of total average profit is verified through the Hessian matrix method. The result shows that the profit can be increased by providing substitute products and which depend on degree of substitution. This framework is validated through numerical example. Conclusion that discusses potential future paths, constraints, and challenges.

This paper aims to develop an inventory model considering discrete demand, coordinated pricing, and multiple delivery policies in a single-buyer single-supplier production-inventory system. The shortage is not allowed and the planning horizon is considered to be infinite. The main objective of the framework is to equip the decision-maker with optimal order, pricing, and shipment quantities to maximize the total profit of the system. The results obtained from the numerical example reveal that the proposed approach with an average selling price equal to about 94% of the classical model, has resulted in an average profit increase of about 16% and an average order increase of about 34% compared to the classical approach.

Supplier selection is very significant business problem for ensuring competitiveness on the market. A number of quantitative methods have been applied to solve this problem. In this paper a criterion to select a supplier is suggested in the cases where the product cost of the supplier varies with planned periods and is uncertain. The effect of variability on the optimal solution is illustrated with the help of a numerical example. The optimal cost for ten periods is estimated using forward dynamic programming approach. It is found that the optimal (minimum) cost increases with the variability in the product cost. One of the important finding of this study is that the supplier with less variability in product cost should be preferred.

Inventory management of agro-based industry (dairy product) is a challenging tax because due to its perishable nature.EOQ model has its importance & role for proper management of this category of Inventory. The success of many businesses is related to their ability to provide goods and services at right time and in right place. Different organization adopt different inventory control methods to manage their inventory to avoid stock-out and overstock. This paper analyses possible parameters of existing literature, concentration, description of characteristics and of EOQ inventory control model that have been developed and can solve the Problem in this field & will provide the customer satisfaction with profit maximization.

Economic ordering policies for a retailer are often strategies subject to the nature of demand, and the kind of benefits received from the suppliers. Globalisation and continuum innovations of new products/technologies put enormous pressure on retailers to attract new customers and look after the current ones concurrently. Thus, a realistic economic order quantity (EOQ) model should link the present business requirements, which can enable the retailer to achieve its business objectives. Based on hazard rate demand, an integrated EOQ model is discussed in the paper for permissible delay in payments, under the assumption that supplier may offer credit periods to the retailer. The demand rate is assumed to be governed by the hazard rate function under dynamic pricing and advertising. The proposed framework is demonstrated with a numerical example and a comprehensive sensitivity analysis is also performed to validate effectiveness of the model.

Newsvendor models are widely used in the literature, and usually based upon the assumption of risk neutrality. This paper uses loss aversion to model manager's decision-making behavior in the single-period newsvendor problem. We find that if shortage cost is not negligible, then a loss-averse newsvendor may order more than a risk-neutral newsvendor. We also find that the loss-averse newsvendor's optimal order quantity may increase in wholesale price and decrease in retail price, which can never occur in the risk-neutral newsvendor model.

Pengendalian persediaan obat adalah kegiatan untuk memastikan tercapainya sasaran yang diinginkan sesuai dengan strategi dan program yang telah ditetapkan sehingga tidak terjadi kelebihan dan kekurangan atau kekosongan obat. Penelitian ini bertujuan untuk mengetahui bagaimana pengendalian persediaan obat pada Puskesmas Teling Atas. Jenis penelitian ini merupakan penelitian deskriptif dengan menggunakan metode kuantitatif dan kualitatif dengan pengambilan data secara retrospektif. Data primer diperoleh dari hasil wawancara kepada petugas pengelola obat dan kepala gudang farmasi dan data sekunder diperoleh dari bagian ruang farmasi berupa dokumen Laporan Pemakaian dan Lembar Permintaan Obat (LPLPO) dari bulan Januari sampai Desember 2021. Hasil penelitian menunjukkan bahwa Puskesmas Teling Atas telah memiliki format penentuan buffer stock dan sudah menyediakan buffer stock untuk mencegah kekosongan maupun kelebihan obat, sehingga dapat disimpulkan bahwa pengendalian persediaan obat pa...