Quantity product and reorder point inventory model for solving raw material problem

Abstract

Improving company ability by reducing operational cost and increasing costumer service must be done. According to Just in Time philosophy, zero inventories must be achieved in order to improve company ability. But in the real situation, it not simply applied in the company because high of risk. Therefore, it is becoming increasingly difficult to ignore the importance of inventory control. The common questions of inventory problem are when to order and how much to order. Those questions must be answered carefully by the manager. On the other hand, many companies assumed the inventory quantities based on manager experiment without developing inventory model. The consequence, uncontrolled quantity product in warehouse occurs and also it will be affected to inventory cost automatically.