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The optimisation of Fresh Apple Inventory by using Multi-Supplier Basnet-Leung Model (Case Study in X Supermarket, Indonesia)
Wike Agustin Prima Dania (a*), Rizky Luthfian Ramadhan Silalahi (a), Rediana Novia Yasinta (a)

Agroindustrial Technology Department, Faculty of Agricultural Technology
University of Brawijaya
Jl. Veteran No 1 Malang, East Java, Indonesia
wikedania[at]ub.ac.id


Abstract

Apple as one of the fresh fruit commodities needs specific treatment in material handling to keep the freshness of the product from farm to the consumers. One of the critical process to maintain the quality of the product is the inventory system. Inventory is one of the major cost components in the production system. Therefore, the inventory system must be controlled to propose the optimal inventory level at the minimum cost. The objective of this paper is to minimise the inventory costs of apple inventory in one of supermarket in Indonesia by using a multi-supplier Basnet-Leung formulation model since the retailer replenishes his inventory from several suppliers. This model allows the system to apply multi-product, multi-period lot sizing and multi-suppliers. The result shows by comparing the costs components between the current company inventory system and the proposed Basnet Leung inventory system; the total cost is reduced up to 40.68%. It results in the total saving in purchasing costs, ordering costs, and holding costs up to 43.20%, 6.44%, and 45.99% respectively. To sum up, controlling the inventory level by using Basnet Leung model will result in a more effective way of purchasing management.

Keywords: Inventory control; Basnet and Leung; multi-supplier

Topic: AGROINDUSTRIAL PRODUCTION SYSTEM MANAGEMENT AND REGULATION

Link: https://ifory.id/abstract/QxCtyJmf73wd

Conference: INTERNATIONAL CONFERENCE ON GREEN AGRO-INDUSTRY AND BIOECONOMY (ICGAB 2019)

Plain Format | Corresponding Author (Wike Agustin Prima Dania)

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