Paper (1): An Inventory Model for Deteriorating Commodity under Stock Dependent Selling Rate
Abstract.
Economic order quantity (EOQ) is one of the most important inventory policy that have to be decided in managing an inventory system. The problem addressed in this paper concerns with the decision of the optimal replenishment time for ordering an EOQ to a supplier. This Model is captured the affect of stock dependent selling rate and varying price. We developed an inventory model under varying of demand-deterioration-price of commodity when the relationship of supplier-grocery-consumer at stochastic environment. The replenishment assumed instantaneous with zero lead time. The commodity will decay of quality according to the original condition with randomize characteristics. First, the model is addressed to solve a problem phenomenon how long is the optimum length of cycle time. Then, an EOQ of commodity to be ordered by will be determined by model. To solve this problem, the first step is developed a mathematical model based on reference’s model, and then solve the model analytically. Finally, an inventory model for deteriorating commodity under stock dependent selling rate and considering selling price was derived by this research.
Keywords:
deterioration commodity, expected profit, optimal replenishment time stock dependent selling rate.
Authors:
Wahyudi Sutopo
Department of Industrial Engineering, Bandung Institute of Technology
Jalan Ganesa 10, Bandung 40132, INDONESIA
Department of Industrial Engineering, University of Sebelas Maret
Jalan Ir. Sutami No. 36 A, Surakarta 57136, INDONESIA.
E-mail: wahyudisutopo@students.itb.ac.id or sutopo@uns.ac.id
Senator Nur Bahagia
Department of Industrial Engineering, Bandung Institute of Technology
Jalan Ganesa 10, Bandung 40132, INDONESIA
Email: senator@mail.ti.itb.ac.id
Paper (2): A Buffer Stocks Model for Stabilizing Price of Commodity under Limited Time of Supply and Continuous Consumption
Abstract.
Staple foods, in developing countries especially in Indonesia, have extremely volatile among harvest and planting season caused by inelastic of supply-demand and price disparity. When a staple food is shortage in market, it will trigger crisis of economics, political and social because it concerns with food security. This paper develops a buffer stock model for stabilizing price of commodity under limited time of supply and continuous consumption. The performance criterion of model will consider financial loss of producer, consumer and government side when market is interfered by price-stabilization program and price-support program simultaneously. The price fluctuation will be stabilized by market operation where buffer stocks are bought from domestic and import supply point. This paper provides a price band policy that attempts to bound domestic price variation between a set of upper and lower bounds on the level of domestic prices. We consider three sets of problems reflecting different three prices elasticity from 4 period of supply and demand. Numerical examples are found to be consistent with empirical estimates regarding the relationship price elasticity with price band and with government budget for the agenda of assisting household to assure availability a staple food with enough amounts at rational prices.
Keywords:
buffer stocks, price band, stabilization, limited time of supply, staple foods.
Authors:
Wahyudi Sutopo
Department of Industrial Engineering, Bandung Institute of Technology
Jalan Ganesa 10, Bandung 40132, INDONESIA
Department of Industrial Engineering, University of Sebelas Maret
Jalan Ir. Sutami No. 36 A, Surakarta 57136, INDONESIA.
E-mail: wahyudisutopo@students.itb.ac.id or sutopo@uns.ac.id
Senator Nur Bahagia1, Andi Cakravastia2, and TMA. Ari Samadhi3
Department of Industrial Engineering, Bandung Institute of Technology
Jalan Ganesa 10, Bandung 40132, INDONESIA
Email: senator@mail.ti.itb.ac.id1, andi@mail.ti.itb.ac.id2, samadhi@mail.ti.itb.ac.id3
The 9th Asia Pacific Industrial Engineering & Management Systems Conference
Nusa Dua, Bali – Indonesia 3 – 5 December 2008 (http://www.apiems2008.org/).