PROBABILISTIC ECONOMIC ORDER QUANTITY MODEL WITH PMETHOD, BACKORDER SYSTEM, AND QUANTITY DISCOUNT FOR MULTI-PRODUCT

Abstract

Inventory problem is one of important things in an agency or individual engaged in distribution. The problem in the real world is that the number of requests randomly occurs, which causes difficulties in estimating inventory costs. This thesis discusses that the inventory model for multi-product with the demand for each type of goods is probabilistic, that occurs uncertainly and cannot be determined beforehand and uses a backorder and discount system. The multiproduct inventory model is complete using the periodic ordering method. This method aims to obtain the optimal ordering period and amount of inventory and determine the minimum total inventory cost. Numerical simulations are provided to illustrate the model. This inventory model is applied to Toko CK and the result is that there is a total savings by 0,3% per month or 2,8% per year of inventory costs. Keywords : Inventory Model, Probabilistic, Multi-product, Backorder.