Inventory control of the products for special sale model

Abstract

This research is the continuation of the previous research that had been presented in the QIR seminar at Bali and BKSTI seminar held in Medan, Indonesia. The pharmacy distributors (called the PBF) X is one of the pharmacy distributors located in the Semarang city, in the middle of Java Island, Indonesia. In current condition, the PBF X would like to increase their inventory performance by minimizing the inventory total cost and determination of T (the order period) and the order size are performed by intuition. In the situation when supplier gives the opportunity of the temporarily special sale price, the PBF X also does not have any method how to determine the order size to get this opportunity. This situation may create the condition of stock out or overstock and may also increase the expected total cost and automatically reduce the inventory performance. The research focuses on the fast moving medicines. When there was no temporarily special sale price, the Calculation used the joint P-(R;T) model for the calculation of both the order interval (T) and the maximum inventory. In the case of temporarily special sale price situation, the calculation uses the temporarily special sale price model and the results are the number of special order and the total benefit. This total benefit can affect the PBF X in making decision whether to perform special order or not.