Planning of Raw Material for Wooden Pallet using Probabilistic Inventory Model


  • Andary Asvaroza Munita University of Mercu Buana, Indonesia
  • Titia Izzati University of Mercu Buana, Indonesia



Inventory control, Probabilistic Model, Continuous Review Model, Periodic Review Model, Backorder


Wooden pallet industry often experienced either shortage or exceed of raw materials which makes the industry suffer for a significant losses due to the company's inability to provide products to fulfill the demand. This deficiency is due to the fact that the company did not have a proper inventory planning of raw material required for the production, as a consequence the company often has to buy the raw material at a higher price in an urgent condition. In order to make a cost efficiency, the activities of purchase and usage of this raw materials need to be planned at the best possible cost so that companies can avoid unnecessary waste of operational costs. With the unpredicted of raw material resources used by the company and quantity of consumer demand, inventory policy planning is needed to determine the most economical quantity required and the time for the company to place the order in these probabilistic conditions.


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How to Cite

Andary Asvaroza Munita, & Titia Izzati. (2022). Planning of Raw Material for Wooden Pallet using Probabilistic Inventory Model. International Journal of Engineering Research and Advanced Technology (ijerat) (E-ISSN 2454-6135) DOI: 10.31695/IJERAT, 8(4), 19–27.