Inventory control systems for stochastic lead time demand

Abstract

Product inventory control can be used to provide information related to processes of production and distribution products based on lead time and product demand from consumers. The research aims to design product inventory control systems for stochastic lead time demand, and using exponential smoothing to make lead time demand prediction. The design of the control system uses the probability method based on the estimated number of product demand from the market or consumer. This research provides theoretical framework for control systems of products that can determine the size of inventory parameters in supply chain management, that is reorder point and fixed order quantity, so it can manage the production amount and supply of products according to market or consumer demand. The benefits of a product control systems in the inventory management are to provide the necessary inventory allocation information in making decisions to determine the amount of production and distribution of products to consumers.

Keywords

• Probabilistic method
• inventory control systems
• stochastic lead time demand