1. Analysis of inventory system for jewelry raw materials using Monte Carlo simulation.
- Author
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Lathifah, Nurul, Komarudin, Komarudin, and Lestari, Renita Bunga
- Subjects
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MONTE Carlo method , *DIAMOND jewelry , *INVENTORY costs , *LINEAR programming , *PURCHASING - Abstract
In-depth research on inventory models has helped businesses find a way to deal with the uncertainty of customer demand. Stockouts of raw materials and high total inventory costs are two issues that might arise for businesses that do not apply inventory models when making purchases. However, traditional methods of analysis cannot be used to solve inventory models with stochastic demand because of the deviation from the normal distribution of its demand. To handle inventory problems with stochastic and intermittent demand, a Monte Carlo simulation method was used for this study. The continuous inventory review policy (Q, R) and the periodic inventory review policy (s, S) are the two types of inventory systems that are being evaluated through simulations. The integer linear programming method is used to optimize the simulation models utilizing the (Q, R), and (s, S) inventory models. The models are applied based on the data from one of the jewelry manufacturing companies in Indonesia, with the product being tested was diamond jewelry. In terms of total inventory costs for the component raw material group, the results showed that the continuous inventory review policy (Q, R) is better than the periodic inventory review strategy (s, S). [ABSTRACT FROM AUTHOR]
- Published
- 2024
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