Abstract

Perishable products are products whose value decreases over time. Inventory management for perishable products is a challenge experienced by retailers. Problems arise when inventory costs increase due to a large amount of wasted or waste products. This research aims to maximize profit by providing policy recommendations for inventory procurement under dynamic pricing. This research optimization focuses on determining the optimal order size and reorder level. To solve this problem, a simulation model is created by considering changes in product prices as product quality decreases. The simulation method in this study is a discrete event simulation using simulation software. Events in this inventory simulation include the arrival of customers and the addition or reduction of inventory levels. The replenishment policy in this study is continuous reviews. Simulation scenarios were generated to obtain an optimum order size and reorder level. The best scenario is obtained from a combination of optimum order size and reorder level. An inventory simulation model was generated based on fruit inventory data at one of the major retailers in Indonesia.

Original languageEnglish
Title of host publicationEurasia Proceedings of Science, Technology, Engineering and Mathematics
EditorsMehmet Ozaslan
PublisherISRES Publishing
Pages372-380
Number of pages9
ISBN (Print)9786256959088
DOIs
Publication statusPublished - 2023
EventInternational Conference on Research in Engineering, Technology and Science, ICRETS 2023 - Budapest, Hungary
Duration: 6 Jul 20239 Jul 2023

Publication series

NameEurasia Proceedings of Science, Technology, Engineering and Mathematics
Volume23
ISSN (Electronic)2602-3199

Conference

ConferenceInternational Conference on Research in Engineering, Technology and Science, ICRETS 2023
Country/TerritoryHungary
CityBudapest
Period6/07/239/07/23

Keywords

  • Discrete event simulation
  • Dynamic pricing
  • Inventory model
  • Perishable product

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