Raw Material Inventory Optimization with Long Leadtime

Nabilah Febriani, Komarudin

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Citation (Scopus)

Abstract

Inventory management is an essential component in supporting production. Factories must implement inventory control to achieve the desired productivity. Material shortages disturb production, while material excess makes spending soar. To prevent these problems, this study aims to analyze raw material requirements and inventory control management at a factory. This paper compares the classic economic order quantity (EOQ) model and Monte Carlo simulation and optimization considering random elements. The order quantity and the reorder point will be obtained using both methods. The results show that the Monte Carlo simulation produces lower inventory costs.

Original languageEnglish
Title of host publicationICBIR 2022 - 2022 7th International Conference on Business and Industrial Research, Proceedings
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages523-526
Number of pages4
ISBN (Electronic)9781665494748
DOIs
Publication statusPublished - 2022
Event7th International Conference on Business and Industrial Research, ICBIR 2022 - Bangkok, Thailand
Duration: 19 May 202220 May 2022

Publication series

NameICBIR 2022 - 2022 7th International Conference on Business and Industrial Research, Proceedings

Conference

Conference7th International Conference on Business and Industrial Research, ICBIR 2022
Country/TerritoryThailand
CityBangkok
Period19/05/2220/05/22

Keywords

  • Cost Inventory
  • EOQ
  • Inventory Control
  • Inventory Management
  • Long lead time Material
  • Monte Carlo simulation
  • Shortage

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