The effect of respond to request ability on quantity order for deterministic model of perishable item: case study of Indonesian sugarcane industry
Centre for Concurrent Enterprise, Nottingham University Business School
Place of Publication
School of Business and Law
Purpose – This article applies a deterministic model of a perishable item for sugarcane inventory on sugar manufacturing considering some parameters. In the model of this study, unit time cost and ordering cost that are kept constant but the holding cost is treated as a nonlinear function of the length of time for which the item held in stock. This study also investigates the impact of the changes of respond request ability on the results obtained so that optimal results can be determined.
Design/methodology/approach - The model in this article used a mathematical model developed by Giri & Chauduri (1997) which was explored further in term of its effect of applying the different value of the ability of respond request to obtain the optimum quantity order. The model has considered the expiration period of the product for deterministic demand and non-linear shortage cost on the period of time ahead. The calculation which was done by using those parameters in this article was supported by Maple® software.
Findings - The results showed that the ability of respond request (β) affect order quantity of sugar cane and the costs incurred. The results obtained by using MAPLE software also indicates that the quantity of raw materials issued during 1 milling period is reduced by 11% with a decrease in the cost of 35%.