IDEAS home Printed from https://ideas.repec.org/a/zib/zbfabm/v2y2021i2p46-50.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://fabm.org.my/download/766/
    Download Restriction: no
    File URL: https://libkey.io/10.26480/fabm.02.2021.46.50?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tuğçe Taşkıner & Bilge Bilgen, 2021. "Optimization Models for Harvest and Production Planning in Agri-Food Supply Chain: A Systematic Review," Logistics, MDPI, vol. 5(3), pages 1-27, August.
    2. Mohd Fahmi Bin Mad Ali & Mohd Khairol Anuar Bin Mohd Ariffin & Aidin Delgoshaei & Faizal Bin Mustapha & Eris Elianddy Bin Supeni, 2023. "A Comprehensive 3-Phase Framework for Determining the Customer’s Product Usage in a Food Supply Chain," Mathematics, MDPI, vol. 11(5), pages 1-20, February.
    3. Lejarza, Fernando & Baldea, Michael, 2022. "An efficient optimization framework for tracking multiple quality attributes in supply chains of perishable products," European Journal of Operational Research, Elsevier, vol. 297(3), pages 890-903.
    4. David Bogataj & Domen Hudoklin & Marija Bogataj & Vlado Dimovski & Simon Colnar, 2020. "Risk Mitigation in a Meat Supply Chain with Options of Redirection," Sustainability, MDPI, vol. 12(20), pages 1-23, October.
    5. Martins, C.L. & Melo, M.T. & Pato, M.V., 2019. "Redesigning a food bank supply chain network in a triple bottom line context," International Journal of Production Economics, Elsevier, vol. 214(C), pages 234-247.
    6. Luo, Na & Olsen, Tava & Liu, Yanping & Zhang, Abraham, 2022. "Reducing food loss and waste in supply chain operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 162(C).
    7. Quan Zhu & Harold Krikke, 2020. "Managing a Sustainable and Resilient Perishable Food Supply Chain (PFSC) after an Outbreak," Sustainability, MDPI, vol. 12(12), pages 1-11, June.
    8. Zhangwei Feng & Peng Jin & Guiping Li, 2023. "Investment Decision of Blockchain Technology in Fresh Food Supply Chains Considering Misreporting Behavior," Sustainability, MDPI, vol. 15(9), pages 1-19, April.
    9. Pritpal Singh & Gurdeep Singh & G. P. S. Sodhi, 2022. "Data envelopment analysis based optimization for improving net ecosystem carbon and energy budget in cotton (Gossypium hirsutum L.) cultivation: methods and a case study of north-western India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 2079-2119, February.
    10. Martins, C. L. & Melo, Teresa & Pato, Margarida Vaz, 2016. "Redesigning a food bank supply chain network, Part I: Background and mathematical formulation," Technical Reports on Logistics of the Saarland Business School 10, Saarland University of Applied Sciences (htw saar), Saarland Business School.
    11. Víctor M. Albornoz & Gabriel E. Zamora, 2021. "Decomposition-based heuristic for the zoning and crop planning problem with adjacency constraints," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 29(1), pages 248-265, April.
    12. Mohd Fahmi Bin Mad Ali & Mohd Khairol Anuar Bin Mohd Ariffin & Faizal Bin Mustapha & Eris Elianddy Bin Supeni, 2021. "An Unsupervised Machine Learning-Based Framework for Transferring Local Factories into Supply Chain Networks," Mathematics, MDPI, vol. 9(23), pages 1-31, December.
    13. Volha Yakavenka & Ioannis Mallidis & Dimitrios Vlachos & Eleftherios Iakovou & Zafeiriou Eleni, 2020. "Development of a multi-objective model for the design of sustainable supply chains: the case of perishable food products," Annals of Operations Research, Springer, vol. 294(1), pages 593-621, November.
    14. Jimmy Carvajal & William Sarache & Yasel Costa, 2024. "Economic Justice in the Design of a Sugarcane-Derived Biofuel Supply Chain: A Fair Profit Distribution Approach," Logistics, MDPI, vol. 8(4), pages 1-28, November.
    15. Asian, Sobhan & Hafezalkotob, Ashkan & John, Jubin Jacob, 2019. "Sharing economy in organic food supply chains: A pathway to sustainable development," International Journal of Production Economics, Elsevier, vol. 218(C), pages 322-338.
    16. Rui Zhao & Yiyun Liu & Zhenyan Zhang & Sidai Guo & Ming-Lang Tseng & Kuo-Jui Wu, 2018. "Enhancing Eco-Efficiency of Agro-Products’ Closed-Loop Supply Chain under the Belt and Road Initiatives: A System Dynamics Approach," Sustainability, MDPI, vol. 10(3), pages 1-15, March.
    17. Rana Azab & Rana S. Mahmoud & Rahma Elbehery & Mohamed Gheith, 2023. "A Bi-Objective Mixed-Integer Linear Programming Model for a Sustainable Agro-Food Supply Chain with Product Perishability and Environmental Considerations," Logistics, MDPI, vol. 7(3), pages 1-29, July.
    18. Utomo, Dhanan Sarwo & Onggo, Bhakti Stephan & Eldridge, Stephen, 2018. "Applications of agent-based modelling and simulation in the agri-food supply chains," European Journal of Operational Research, Elsevier, vol. 269(3), pages 794-805.
    19. Mingyuan Wei & Hao Guan & Yunhan Liu & Benhe Gao & Canrong Zhang, 2020. "Production, Replenishment and Inventory Policies for Perishable Products in a Two-Echelon Distribution Network," Sustainability, MDPI, vol. 12(11), pages 1-26, June.
    20. Mariana Toussaint & Pablo Cabanelas & Pilar Muñoz-Dueñas, 2022. "Social sustainability in the food value chain: what is and how to adopt an integrative approach?," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(4), pages 2477-2500, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zib:zbfabm:v:2:y:2021:i:2:p:46-50. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Zibeline International Publishing The email address of this maintainer does not seem to be valid anymore. Please ask Zibeline International Publishing to update the entry or send us the correct address (email available below). General contact details of provider: https://fabm.org.my/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.