Analyzing EPQ Inventory Model With Comparison of Exponentially Increasing Demand and Verhult's Demand

2021 ◽  
pp. 227-259
Author(s):  
Kuppulakshmi V. ◽  
Sugapriya C. ◽  
Jeganathan Kathirvel ◽  
Nagarajan Deivanayagampillai
Keyword(s):  
Sensitivity Analysis ◽  
Production Process ◽  
Inventory Management ◽  
Demand Function ◽  
Inventory Model ◽  
Decision Variable ◽  
Working Process ◽  
Management Planning ◽  
Total Cost ◽  
Increasing Demand

This research investigates the comparison of inventory management planning in Verhult's demand and exponentially increasing demand. The working process is different in both the cases coupling the parameters and points out the constraints for the optimal total cost in both the cases. This analysis shows that rate of deterioration and percentage of reworkable items is considered as decision variable in both (1) exponentially increasing demand and (2) Verhult's demand. While comparing, the total cost in Verhult's demand pattern is more profitable production process. A substantial numerical example is considered to investigate the effect of change in the total cost in both the demand function. A sensitivity analysis is developed to study the effect of changes in total cost.

Optimization of Inventory for Optimal Replenishment Policies and Lead-Time with Time Varying Demand

2016 ◽  
pp. 201-221
Author(s):  
Kaushik Kumar ◽  
Supriyo Roy
Keyword(s):  
Inventory Management ◽  
Lead Time ◽  
Product Life Cycle ◽  
Inventory Model ◽  
Decision Variable ◽  
Time Varying ◽  
Lot Size ◽  
Solution Approach ◽  
Purchasing Cost ◽  
Increasing Demand

Considering a single period inventory management problem used in the distribution channel to represent consumer demand for marketing/sales of a product, attempt is made to develop a deterministic inventory model with time-varying increasing demand that may be used to reflect sales in different phases of a product life cycle in the competitive market. We propose inventory model assuming replenishment cost is to be linearly dependent on lot size and purchasing cost per unit item is dependent on lead time. Lead time is taken as decision variable. Shortages are allowed to backlog and to lose partly. Our objective is to cumulatively evaluate optimal replenishment lot-size, order time and lead-time for maximization of total profit. Considering the complexities of the proposed model, we propose a heuristic solution approach by developing an ERCM Genetic Algorithm based on ranking section, elitism, whole arithmetic crossover and non-uniform mutation dependent on the age of the population. This heuristics are easy to compute and practical to implement, and perform well in numerical trials.

Analisis Model Optimasi Manajemen Persediaan dengan Menggunakan Metode EOQ

2019 ◽  
Vol 2 (2) ◽  
Author(s):  
Nani Suryani ◽  
Ihda Hasbiyati
Keyword(s):  
Production Process ◽  
Inventory Management ◽  
Optimization Model ◽  
Optimization Method ◽  
Total Cost ◽  
Eoq Model ◽  
Method Optimization ◽  
Cost Of Production ◽  
A Company

Manajemen persediaan adalah meminimumkan total biaya yang berhubungan dengan proses produksi dari suatu perusahaan. Dalam penelitian ini, penulis menganalisis model optimasi manajemen persediaan dengan meggunakan metode EOQ. Model optimasi yang diperoleh dapat digunakan untuk menyelesaikan masalah manajemen persediaan yang tepat untuk semua kondisi dan semua jenis perusahaan.   Inventory management is by means to minimize total cost of production process in a company. In this research, we analyzed optimization model of inventory management by using EOQ method. Optimization method obtained may be used to solve problems in inventory management effectively in every conditions and companies.

scholarly journals ANALISIS PERSEDIAAN KOPI DALAM MEMENUHIPERMINTAAN PASAR (Studi kasus di Kelompok Tani Rahayu Kecamatan Pangalengan Kabupaten Bandung )

2017 ◽  
Vol 3 (2) ◽  
pp. 23
Author(s):  
Wini Fetia Wardhiani
Keyword(s):  
Inventory Management ◽  
Study Data ◽  
Inventory Model ◽  
Market Demand ◽  
Total Cost ◽  
Eoq Model ◽  
Model Research ◽  
The Village ◽  
Case Study Data

An analysis of the coffee supply to meet market demand, a case study in the "FarmersRahayu" Pangalengan, Bandung regency. Rahayu Farmer Group is one of the most advanced coffee producer compared with other farmer groups in the village Margamulya. However, Rahayu Farmer Group have yet to implement a particular supply model for managing a supply of coffee. Thus, Farmers Group Rahayu not know how efficient and effective inventory management coffee they have done. Therefore, the authors feel compelled to discuss more about the study of coffee in the inventory management Rahayu Farmer Group. The purpose of this research is to know about the inventory management is done by Farmers Group Rahayu and coffee inventory management according to the model of EOQ (Economic Order Quantity). Model Research conducted in this study is a case study. Data collection techniques used were observation, interview, and literature study.The results prove that inventory management is done by Farmers Group Rahayu has not been effective and efficient. This can be evidenced through a comparison between the inventory model used by the actual conditions that occur in the company. EOQ inventory model has a total cost of 17.43% lower. EOQ model with safety stock have 5% lower total cost of supply.

scholarly journals Penentuan Kuantitas Produksi Kue Brownies yang Optimal pada Model Persediaan Periode Tunggal

2021 ◽  
Vol 1 (1) ◽  
pp. 30-36
Author(s):  
Vini Damayanti ◽  
M. Yusuf Fajar
Keyword(s):  
Production Process ◽  
Inventory Management ◽  
Total Cost ◽  
Holding Costs ◽  
Inventory Costs ◽  
Holding Cost ◽  
The Cost ◽  
A Company ◽  
Optimal Quantity ◽  
Period Model

Abstract. Inventory is an important part of a manufacturing company, both before the production process begins, during the production process or after the production process is complete. Inventory control in a company must be carried out as optimally as possible. Shortage or excess of inventory will cause losses for the company. Holding costs will be large if there is excess inventory. With the availability of inventory management, it can anticipate a surge in demand from consumers. Inventory management is also used to optimize inventory as possible to reduce inventory costs. In this thesis, analyze the optimal quantity of brownie cake production using a single period model. In this model, it must determine the level of inventory, the holding cost of inventory, and the cost of shortage of inventory. Once determined, it can be seen from the optimal brownies cake production results. Based on the results of the data analysis of the optimal quantity of brownie cake production, it can be seen that the optimal of 8 packages or 200 pcs with an expected total cost of  Rp. 12.825.540. Abstrak. Persediaan merupakan bagian yang penting dalam suatu perusahaan manufaktur, baik sebelum proses produksi dimulai, saat proses produksi berlangsung maupun setelah proses produksi selesai. Pengendalian persediaan dalam suatu perusahaan harus dilakukan seoptimal mungkin. Kekurangan maupun kelebihan persediaan akan dapat menimbulkan kerugian bagi perusahaan. Biaya penyimpanan akan menjadi besar bila terjadi kelebihan persediaan. Dengan adanya manajemen persediaan dapat mengantisipasi lonjakan permintaan dari konsumen. Manajemen persedian juga berguna untuk mengoptimalkan persediaan seoptimal mungkin guna mengurangi biaya persediaan. Pada skripsi ini, di lakukan analisis penentuan kuantitas produksi kue brownies yang optimal dengan menggunakan model periode tunggal. Pada model ini harus menentukan level inventory, biaya simpan, dan biaya kekurangan persediaan. setelah ditentukan maka dapat dilihat hasil produksi kue brownies yang optimal. Berdasarkan hasil analisis data kuantitas produksi kue brownies yang optimal sebanyak 8 pack atau 200 pcs dengan ekspektasi ongkos total Rp. Rp. 12.825.540.

scholarly journals PENGENDALIAN PERSEDIAAN PROBABILISTIK PRODUK SUBSTITUSI DENGAN PERMINTAAN SEBAGAI FUNGSI HARGA

2021 ◽  
Vol 16 (1) ◽  
pp. 56-62
Author(s):  
Laila Nafisah ◽  
Sutrisno Sutrisno
Keyword(s):  
Sensitivity Analysis ◽  
Inventory Model ◽  
Optimal Order ◽  
Lost Sales ◽  
Business Unit ◽  
Order Quantity ◽  
Product Substitution ◽  
Inventory Models ◽  
Total Cost ◽  
Optimal Order Quantity

Kamara Living merupakan suatu unit usaha yang bergerak dalam penjualan kebutuhan sehari-hari. Salah satu produk yang populer adalah sarung bantal. Sarung bantal yang ditawarkan memiliki beberapa desain motif dan jenis yang berbeda. Permintaan akan produk sarung bantal tidak menentu antara satu desain dengan desain yang lain. Ketika desain tertentu persediaannya habis, perusahaan akan menawarkan desain lain dari jenis kain yang sama. Jika konsumen tidak bersedia maka terjadi kehilangan penjualan. Ketika persediaan berlebih, perusahaan akan memberikan harga promosi untuk mendongkrak tingkat penjualannya. Jika ini dibiarkan terus-menerus, tentu saja perusahaan akan mengalami penurunan keuntungan. Pada makalah ini dikembangkan model persediaan dengan mempertimbangkan produk substitusi dengan permintaan sebagai fungsi harga yang bertujuan untuk meminimasi total biaya persediaan. Penyelesaian model yang dilakukan mampu menghasilkan solusi kuantitas pemesanan dan titik pemesanan yang optimal. Validasi model dilakukan dengan membandingkan hasil dari model yang dikembangkan terhadap kondisi riil. Selain itu juga dilakukan analisis sensitivitas terhadap parameter-parameter yang berpengaruh. Abstract[Product-substitution Inventory Model with Demand depend on Price] Kamara Living is a business unit engaged in selling daily stuff. One popular product is pillowcases. The pillow cover offered has several different motif designs and types. The demand for pillowcases is uncertain between one design and another. When a stockout occurs for a particular design, the company will offer another design of the same type of fabric. If consumers are not willing, there will be lost sales. When there is overstock, the company will provide promotional prices to increase sales levels. If this is allowed to continue, of course the company will experience a decline in profits. In this paper, an inventory model is developed by considering substitute products with demand as a price function that aims to minimize the total cost of inventory. Completion of the model carried out is able to produce optimal order quantity and order point solutions. Model validation is done by comparing the results of the models developed against real conditions. In addition, a sensitivity analysis was carried out on the influential parameters.Keywords: Inventory Models; Product Substitution; Demand Depend on Price

scholarly journals An Inventory Management System for Deteriorating Items with Ramp Type and Quadratic Demand: A Structural Comparative Study

2020 ◽  
Vol 11 (4) ◽  
pp. 1-8
Author(s):  
Biswaranjan Mandal
Keyword(s):  
Sensitivity Analysis ◽  
Comparative Study ◽  
Inventory Management ◽  
Management System ◽  
Optimum Time ◽  
Total Cost ◽  
Deterioration Rate ◽  
Inventory Management System ◽  
Demand Rates ◽  
Constant Deterioration

The present paper deals with an inventory management system with ramp type and quadratic demand rates. A constant deterioration rate is considered into the model. In the two types models, the optimum time and total cost are derived when demand is ramp type and quadratic. A structural comparative study is demonstrated here by illustrating the model with sensitivity analysis.

scholarly journals An Inventory Model for Deteriorating Items With Exponential Declining Demand and Return

2020 ◽  
Vol 20 (1) ◽  
pp. 31
Author(s):  
Fadli Fadli ◽  
Sudarajat Sudrajat ◽  
E. Lesmana
Keyword(s):  
Mathematical Model ◽  
Sensitivity Analysis ◽  
Demand Function ◽  
Return Time ◽  
Optimal Number ◽  
Deteriorating Items ◽  
Total Cost ◽  
Deterioration Rate ◽  
Declining Demand ◽  
Constant Deterioration

In this paper propose an EOQ mathematical model for deteriorating items. The model is developed with a demand function that decreases exponentially, a constant deterioration rate, a shortage is permitted, and a return occurs. The purpose of this model is to determine the minimum total cost by determining the optimal return time and the optimal number of orders. A numerical example is given to describe the working model. Furthermore, a sensitivity analysis was conducted to see the effect of changing parameters on the optimal solution.Keywords: Deteriorating item, inventory, return, shortageModel Persediaan Deteriorasi Item Dengan Exponential Declining Demand dan ReturnABSTRAKDalam makalah ini mengusulkan model matematika EOQ untuk item yang mengalami deteriorasi. Model ini dikembangkan dengan fungsi permintaan yang menurun secara eksponensial, laju deteriorasi konstan, kekurangan diizinkan, dan terjadi pengembalian. Tujuan dari model ini adalah untuk menentukan biaya total minimum dengan menentukan waktu pengembalian optimal dan jumlah pesanan optimal. Contoh numerik diberikan untuk menggambarkan model bekerja. Selanjutnya, analisis sensitivitas dilakukan untuk melihat efek perubahan parameter pada solusi optimal.Kata kunci: Deteriorasi item, persediaan, pengembalian, kekurangan

scholarly journals Analysis of Inventory Model with Time Dependent Quadratic Demand Function Including Time Variable Deterioration Rate without Shortage

2021 ◽  
pp. 97-109
Author(s):  
Md. Atiqur Rahman ◽  
Mohammed Forhad Uddin
Keyword(s):  
Demand Function ◽  
Optimal Solution ◽  
Quadratic Function ◽  
Inventory Model ◽  
Time Dependent ◽  
Inventory Cost ◽  
Total Cost ◽  
Deterioration Rate ◽  
Total Inventory ◽  
Dependent Demand

This paper deals with an inventory model for deteriorating items along with time dependent demand which is quadratic function of time. In this model, the deterioration rate follows deterministic deterioration which is quadratic function of time. Here shortages are not allowed. The main purpose of this paper is to investigate minimum total cost per unit time of the inventory model. The result are validated with the help of numerical example. The sensitivity analysis of the optimal solution with respect to various parameters is carried out. Finally the behavior of the relation between parameters and total inventory cost have been shown using figure.

The Comparison between Cost and Benefit Business Model of Organic and Chemical Agricultural Vegetable Farming System

2020 ◽  
Vol 11 (1) ◽  
pp. 133-133
Author(s):  
Peerasak Puengpapat
Keyword(s):  
Production Process ◽  
Organic Farming ◽  
Business Model ◽  
Return On Investment ◽  
Agricultural Sector ◽  
Organic Production ◽  
Total Cost ◽  
Cost And Benefit ◽  
Net Profit ◽  
Organic Vegetables

This research is intended to compare and demonstrate the difference between the cost and benefit of organic farming and chemistry. Compare differences in the quality of yields and minerals in the soil both before and after cultivation and modeling of agribusiness. Using Business Model Canvas for the decision of agricultural entrepreneurs who want to modify the farming process.The research found that in the experiment comparing between the costs of Organic farming and Chemical farming to produce three types of vegetables that are cucumber ,red oak salad and radish, with the total cost of growing vegetables in Organic farming, higher than the total cost of growing vegetables in Chemical farming. There is a greater frequency of fertilizing and injecting Organic matter than chemical farming. The net profit from the sale of vegetables in the Organic agricultural sector is higher than the net profit from the sale of vegetables in the Chemical agricultural sector, as the production price of Organic agricultural sector is higher than the production price of Chemical agricultural sector because the production process of organic farming has a higher production process and requires higher production attention to produce quality, and another factor is that Organic vegetables have a higher production cost than vegetables from chemical farming, resulting in less volume of organic production in the market than vegetables from Chemical agricultural sector. Consumers are demanding more healthy Organic vegetables. As a result, the price of vegetables that produced by Organic agricultural sector is higher than the price of vegetables that produced by Chemical agricultural sector, and the Return on Investment in Organic vegetables is higher than the vegetables that produced by Chemical agricultural .The Return on Investment in production of Organic farming is 61.48% and The Return on Investment in production of Chemical farming is 33.87%. It is therefore possible to conclude that growing vegetables in Organic way is safe for vegetable farmers who do not have to be exposed to any harmful Chemicals, as well as the resulting produce that is safe from residues, allowing consumers to be safe from toxin residues and receive good quality vegetables. Type of Paper: Empirical/Experimental Keywords: Agricultural; Organics; Cost ;Business Model ;Comparison.

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