Periodic review inventory model simulations for imperfect quality items and stochastic demand

Gede A. Widyadana*, Audrey T. Widjaja, Irena Liong

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

2 Citations (Scopus)

Abstract

Research on Economic Order Quantity (EOQ) models has been developed intensively to get practical models. One of the models is considering imperfect quality items where a fraction of imperfect quality items will be found after 100% screening a batch items. However, in many models, they only consider deterministic demand and there was no discussion about stochastic demand models. In this paper, stochastic demands are considered and we assume that a shipment is coming from a distant supplier and therefore it's not feasible to replace the imperfect quality items with an additional order to the same supplier. The stochastic demand needs to be considered because of the fact that demand is uncertain. Since the model is hard to solve mathematically, simulation and evolutionary algorithm are used to solve the model. The results show that periodic review systems have less total inventory cost than continuous review system. The sensitivity analysis shows that s,S system is more robust than S,T system in difference standard deviation.

Original languageEnglish
Title of host publicationProceedings - 2017 International Conference on Soft Computing, Intelligent System and Information Technology
Subtitle of host publicationBuilding Intelligence Through IOT and Big Data, ICSIIT 2017
EditorsHenry Novianus Palit, Leo Willyanto Santoso
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages243-249
Number of pages7
ISBN (Electronic)9781467398992
DOIs
Publication statusPublished - 2 Jul 2017
Externally publishedYes
Event5th International Conference on Soft Computing, Intelligent System and Information Technology, ICSIIT 2017 - Denpasar, Bali, Indonesia
Duration: 26 Sept 201729 Sept 2017

Publication series

NameProceedings - 2017 International Conference on Soft Computing, Intelligent System and Information Technology: Building Intelligence Through IOT and Big Data, ICSIIT 2017
Volume2018-January

Conference

Conference5th International Conference on Soft Computing, Intelligent System and Information Technology, ICSIIT 2017
Country/TerritoryIndonesia
CityDenpasar, Bali
Period26/09/1729/09/17

Keywords

  • S
  • S model
  • T model
  • imperfect quality items
  • periodic review system
  • repair
  • s
  • stochastic demand

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