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The Inventory Management of Fresh Vegetables Using Inventory Balance and Across of Its Supply Chain

In: Operations Research Proceedings 2013

Author

Listed:
  • Adi Djoko Guritno

    (Gadjah Mada University)

  • Henry Yuliando

    (Gadjah Mada University)

  • Endy Suwondo

    (Gadjah Mada University)

Abstract

A wider application of the Integrated Planning Support Framework (IPSF) model can provide more practical basis for benchmarking of real case studies. This study is aimed to determine the opportunity loss and cost of excess inventory of fresh vegetables, the optimal inventory level, and the inventory management based on the types of distribution lead-time. An extensive observation over six-month supply chain tracking from several point of sales of fresh vegetables was conducted to employee the proposed IPSF. The result showed an inefficient supply chain due to an imbalance of customer service and inventory levels. Each tier within the supply chain indicated a dissimilar of inventory size that influenced the inventory decision of each tier. In further, it suggests that the losses of fresh vegetables in term of cost and quality could be reduced by using inventory balance and policies in levelling inventory.

Suggested Citation

  • Adi Djoko Guritno & Henry Yuliando & Endy Suwondo, 2014. "The Inventory Management of Fresh Vegetables Using Inventory Balance and Across of Its Supply Chain," Operations Research Proceedings, in: Dennis Huisman & Ilse Louwerse & Albert P.M. Wagelmans (ed.), Operations Research Proceedings 2013, edition 127, pages 177-183, Springer.
    • Handle: RePEc:spr:oprchp:978-3-319-07001-8_24
    DOI: 10.1007/978-3-319-07001-8_24
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