Daftar Isi:
  • The problem in determining the quantity of inventory level is when the inventory is inadequate, then the company would face the risk of unsatisfying consumer’s demand. This also means the company would lose the chance to achieve the profit it should have and the continuity of the company would be disturbed because of the lesser level of inventory. At the other side, if the inventory level exceeded the quantity that is needed, then this would increase a high holding cost, this problem is called lot size inventory. The problem that companies usually face is the higher level of raw material inventory that occurs holding costing. Because of these problems, writer would like to minimize this problem. There are two models to controll inventory which are deterministic and probabilistic models. The model that is used by writer is probabilistic model. The condition that is offered by probabilistic model is really similar to the condition in a company, where demands and lead time always change. Inventory controlling models of variable demands and lead time could give saving from holding cost. With the effectiveness of this saving, the the profit a company would gain should be increase.