An Inventory Decision Model of Two Products with Vector Autoregressive Demand
| Main Authors: | The Jin Ai, ., Astanti, Ririn Diar , SEKARSARI, SANDRIA |
|---|---|
| Format: | Proceeding PeerReviewed Book |
| Bahasa: | eng |
| Terbitan: |
, 2018
|
| Subjects: | |
| Online Access: |
http://e-journal.uajy.ac.id/15951/1/APIEMS%202017%20-%20Paper%2038.pdf http://e-journal.uajy.ac.id/15951/ |
Daftar Isi:
- An inventory system that consist of two different products is considered in this paper. Demand of these products have purchase dependent power, i.e. demand of product A is affecting demand of product B, and vice versa. Then, a vector autoregressive VAR(1) model is being used as the reference forecasting model for the demand pattern. This forecasting model is being used as a basis for determining inventory policy for two products with purchase dependent power. An inventory decision model regarding when and how much to order of these products is developed in order to minimize total inventory cost consists of ordering and holding cost. Possibility to reducing order cost by joining replenishment of these products also being evaluated.