Determining Production Quantity Models For Short-Age (Perishable) Products
Dadang Arifin, Zaenal Muttaqien
Universitas Jenderal Achmad Yani
Abstract
This paper contains the development decision model to determine the level of production for short-lived products or perishable product categories. This decision model is a mathematical model to determine the optimal level of production considering the age of the product, the production capacity, the rate of demand, and the costs involved. The research uses operational research methods through surveys and literature studies. The results of the study obtained mathematical formulations to determine the level of daily production (batches) so that the product does not expire, effective, efficient, and maximizing the availability of finish product. There are two models derived based on the assumptions used. The first is assumed if the product is drawen randomly and the second is assumed to draw the product based on the process sequence or fifo (first in first out). The model is validated mathematically and empirically by using a case in a company making meatballs located in Purwakarta. The calculation results are tested by simulating demand randomly. The test results can be concluded that the developed model is able to provide the best solution for companies in minimizing expired products, and maximizing the availability of products when needed.
Keywords: optimal, life time, expire, costs
Topic: Industrial Engineering