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An Inventory Policy On Agroindustry Supply Chain: A Case Study Of Fruit Seasonal In East Java

Author

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  • Paramaditya Arismawati

    (Departement System and Industrial Engineering, Faculty of Industrial Technology and Systems Engineering Institut Teknologi Sepuluh Nopember)

  • Wahyu Andy Prastyabudi

    (Department Industrial Engineering, Faculty of Information Technology and Industrial Engineering Institut Teknologi Telkom Surabaya)

Abstract

To forestall the overstock or understock, inventory policy often considers thoroughly the optimal order quantity and order time. It is considerably getting more complex in the case of agroindustry as its commodity mostly is classified as perishable goods. The increase of order at a particular season sometimes is not counterbalanced with the number of stocks. The prevalent rationale of this problem is due to none of the appropriate inventory policy is implemented. The purpose of this research is to develop an inventory policy system in the case of agroindustry considering the inventory cost, deterioration rate of perishable fruits, and seasonal variable. Thus, it can be used to maintain the stability of demand while considering those variables. This study employs the periodic review (R,s,S) to construct an inventory policy. The periodic review is determined by order interval (R), a combination of reorder point (s), and maximum level (S). The experimental case study is presented to provide an example of an inventory policy. The inventory policy can alleviate the stocking problem of perishable and seasonal fruits encountered by the agroindustry. The method is able to minimize inventory cost by controlling the inventory systems. This paper offers a model of inventory policy on agroindustry to control and optimize the stocks while reckoning the inventory cost, deterioration rate, and seasonal to fulfil the demand.

Suggested Citation

  • Paramaditya Arismawati & Wahyu Andy Prastyabudi, 2021. "An Inventory Policy On Agroindustry Supply Chain: A Case Study Of Fruit Seasonal In East Java," Food & Agribusiness Management (FABM), Zibeline International Publishing, vol. 2(2), pages 46-50, March.
    • Handle: RePEc:zib:zbfabm:v:2:y:2021:i:2:p:46-50
    DOI: 10.26480/fabm.02.2021.46.50
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    References listed on IDEAS

    as
    1. Soto-Silva, Wladimir E. & Nadal-Roig, Esteve & González-Araya, Marcela C. & Pla-Aragones, Lluis M., 2016. "Operational research models applied to the fresh fruit supply chain," European Journal of Operational Research, Elsevier, vol. 251(2), pages 345-355.
    2. Shuai Yang & Yujie Xiao & Yong-Hong Kuo, 2017. "The Supply Chain Design for Perishable Food with Stochastic Demand," Sustainability, MDPI, vol. 9(7), pages 1-12, July.
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