Iventory Policy for Multi Item Products by Short Expiration Period

Abstract

Inventory planning is an importantpartin the industry. For industries that produces product with short expiration period, such as the food industry, product expiration period is an important factor that cannot be released in determining the inventory model. Small and Medium Enterprises (SMEs) in the food industry produce the product has a short expiration period of 3 days. Products that have exceeded the expiration period will be returned to the industry and will bear the product expiration costs. The SMEs obtain the expiration costs of IDR 1,518,800 with a total expired product of 600 units. SMEs have not considered multi-item inventory systems. Order policy conducted by single order system. Therefore, efforts should be made to reduce the quantity of expired products, and find out the optimal order quantity and time of ordering goods together (joint order). The optimal order quantity planned with the EOQ method. The result indicate thatoptimalquantity of orders on lapis legit as many as 60 units,30 units of Caramel, 54 units of Sponge cake, 6 units of Brownies and 108 units of Bika Ambon, frequency of delivery 28 times in a month with a total inventory cost of IDR 4,548,044.