An Inventory Decision Model of Two Products with Vector Autoregressive Demand

Ai, The Jin and Astanti, Ririn Diar and SEKARSARI, SANDRIA (2018) An Inventory Decision Model of Two Products with Vector Autoregressive Demand. In: 18Th Asia Pacific Industrial Engineering and Management System Conference (APIEMS2017), 3 - 6 December 2017, Hyatt Regency, Yogyakarta, Indonesia.

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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.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: purchase dependent power, vector autoregressive, inventory decision model, joint replenishment
Subjects: Industrial Engineering > Production and Inventory Management
Divisions: Fakultas Teknologi Industri > Teknik Industri
Depositing User: Editor UAJY
Date Deposited: 08 Oct 2018 06:23
Last Modified: 04 Jul 2019 02:10

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