Track: Inventory Control and Management

Abstract

One of the challenges faced by the food industry when managed supplies are perishable products. Perishable products are products that have a short lifetime. A short lifetime will make a decrease in value over time. The problem with inventory management for perishable products is how to determine the amount of supply needed to used/stored before the product's life runs out and will achieve profit maximization. In this research, an inventory management model product will make by doing a renewal process. This model has three inventory phases. Each phase stores a different type of product, where inventory in the first phase will change to the second phase through a specific process. The renewal process is to change a product in the previous phase and becomes a different product in the next phase. By doing the renewal process, the rest of the product from the previous phase can be used and not wasted. The purpose of doing the renewal process is to extend product lifetime. The problem in this study will perform in several case scenarios that can represent real system conditions. It also can prove that doing the renewal process can provide higher profits.