MULTI-ITEM PROBABILISTIC INVENTORY MODELS CONSIDERING DISCOUNT, EXPIRATION, WAREHOUSE CAPACITY, AND CAPITAL CONSTRAINTS

In general, companies have inventory stored in warehouses to be used or sold in the future. To optimize inventory, companies require a model to determine the appropriate order quantity and optimal reorder timing to minimize total inventory costs. To stay within the set capacity, several factors need...

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Main Authors: Claresta Tirta Saputera Gunawan, Dharma Lesmono, Daniel Salim
Format: Article
Language:English
Published: Universitas Pattimura 2024-07-01
Series:Barekeng
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Online Access:https://ojs3.unpatti.ac.id/index.php/barekeng/article/view/12759
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author Claresta Tirta Saputera Gunawan
Dharma Lesmono
Daniel Salim
author_facet Claresta Tirta Saputera Gunawan
Dharma Lesmono
Daniel Salim
author_sort Claresta Tirta Saputera Gunawan
collection DOAJ
description In general, companies have inventory stored in warehouses to be used or sold in the future. To optimize inventory, companies require a model to determine the appropriate order quantity and optimal reorder timing to minimize total inventory costs. To stay within the set capacity, several factors need to be considered in inventory management, such as a product's shelf life, warehouse capacity, and capital. On the other hand, suppliers may offer discounts, and companies tend to take advantage of them. However, they must consider the warehouse capacity and capital availability. This paper constructs two probabilistic multi-item inventory models, considering discounts, expiration, warehouse capacity, and capital constraint. The first model considers all-unit discounts, while the second deals with incremental discounts. We consider three items to be managed and examine three replenishment policies, namely individual order, joint order, and a combined policy of individual and joint order, to minimize the total inventory cost. Sensitivity analysis is performed on the joint order policy to determine the influence of parameter values' changes on the reorder time and total inventory cost.
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institution Kabale University
issn 1978-7227
2615-3017
language English
publishDate 2024-07-01
publisher Universitas Pattimura
record_format Article
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spelling doaj-art-15f8c7ec072f4affb75d0bfc5f09e70b2025-08-20T03:49:07ZengUniversitas PattimuraBarekeng1978-72272615-30172024-07-011832001201410.30598/barekengvol18iss3pp2001-201412759MULTI-ITEM PROBABILISTIC INVENTORY MODELS CONSIDERING DISCOUNT, EXPIRATION, WAREHOUSE CAPACITY, AND CAPITAL CONSTRAINTSClaresta Tirta Saputera Gunawan0Dharma Lesmono1Daniel Salim2Center for Mathematics and Society, Department of Mathematics, Faculty of Information Technology and Sciences, Universitas Katolik Parahyangan, IndonesiaCenter for Mathematics and Society, Department of Mathematics, Faculty of Information Technology and Sciences, Universitas Katolik Parahyangan, IndonesiaCenter for Mathematics and Society, Department of Mathematics, Faculty of Information Technology and Sciences, Universitas Katolik Parahyangan, IndonesiaIn general, companies have inventory stored in warehouses to be used or sold in the future. To optimize inventory, companies require a model to determine the appropriate order quantity and optimal reorder timing to minimize total inventory costs. To stay within the set capacity, several factors need to be considered in inventory management, such as a product's shelf life, warehouse capacity, and capital. On the other hand, suppliers may offer discounts, and companies tend to take advantage of them. However, they must consider the warehouse capacity and capital availability. This paper constructs two probabilistic multi-item inventory models, considering discounts, expiration, warehouse capacity, and capital constraint. The first model considers all-unit discounts, while the second deals with incremental discounts. We consider three items to be managed and examine three replenishment policies, namely individual order, joint order, and a combined policy of individual and joint order, to minimize the total inventory cost. Sensitivity analysis is performed on the joint order policy to determine the influence of parameter values' changes on the reorder time and total inventory cost.https://ojs3.unpatti.ac.id/index.php/barekeng/article/view/12759capital constraintdiscountinventory modelmulti-itemwarehouse capacity
spellingShingle Claresta Tirta Saputera Gunawan
Dharma Lesmono
Daniel Salim
MULTI-ITEM PROBABILISTIC INVENTORY MODELS CONSIDERING DISCOUNT, EXPIRATION, WAREHOUSE CAPACITY, AND CAPITAL CONSTRAINTS
Barekeng
capital constraint
discount
inventory model
multi-item
warehouse capacity
title MULTI-ITEM PROBABILISTIC INVENTORY MODELS CONSIDERING DISCOUNT, EXPIRATION, WAREHOUSE CAPACITY, AND CAPITAL CONSTRAINTS
title_full MULTI-ITEM PROBABILISTIC INVENTORY MODELS CONSIDERING DISCOUNT, EXPIRATION, WAREHOUSE CAPACITY, AND CAPITAL CONSTRAINTS
title_fullStr MULTI-ITEM PROBABILISTIC INVENTORY MODELS CONSIDERING DISCOUNT, EXPIRATION, WAREHOUSE CAPACITY, AND CAPITAL CONSTRAINTS
title_full_unstemmed MULTI-ITEM PROBABILISTIC INVENTORY MODELS CONSIDERING DISCOUNT, EXPIRATION, WAREHOUSE CAPACITY, AND CAPITAL CONSTRAINTS
title_short MULTI-ITEM PROBABILISTIC INVENTORY MODELS CONSIDERING DISCOUNT, EXPIRATION, WAREHOUSE CAPACITY, AND CAPITAL CONSTRAINTS
title_sort multi item probabilistic inventory models considering discount expiration warehouse capacity and capital constraints
topic capital constraint
discount
inventory model
multi-item
warehouse capacity
url https://ojs3.unpatti.ac.id/index.php/barekeng/article/view/12759
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AT dharmalesmono multiitemprobabilisticinventorymodelsconsideringdiscountexpirationwarehousecapacityandcapitalconstraints
AT danielsalim multiitemprobabilisticinventorymodelsconsideringdiscountexpirationwarehousecapacityandcapitalconstraints