MODEL PENENTUAN UKURAN LOT DINAMIS UNTUK RITEL DENGAN MULTI PEMASOK DAN DISKON KUANTITAS YANG MEMPERTIMBANGKAN ADVANCE DEMAND INFORMATION

• Main Author: Ferdian, Rendiyatna
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/35345
• Institution: Institut Teknologi Bandung

Current shift from the seller's market to the buyer's market makes the level of competition among retail businesses to get consumers becomes higher. Retailers are required to always follow consumer demand and still make a profit. Determination of production quantity is one of the key factors in the retail production process to produce minimum costs. According to Randall et al (2006), one way that can be done to control costs in production activities is to optimize inventory and demand levels. Dynamic Lot Sizing (DLS) model as one method in production planning, widely used to minimize inventory levels, which basically will minimize production costs. The DLS model tries to eliminate the assumption of a fixed demand level throughout the period used in the Economic Order Quantity (EOQ) model. The high rate of internet usage currently makes online retail businesses grow, nowadays there are many emerging business actors who start online retail businesses. One of the characteristics of consumers in online retail is that consumers order products before the due date for fulfilling their requests. Request information before this due date is known as Advance Demand Information (ADI). The condition when a retailer has more than one supplier also needs to be considered to find the cheapest production costs. In some cases, suppliers will also provide a discount price for certain purchases. The characteristics of these business processes are the basis of this research to develop a DLS models. This research develops a DLS model for retailers with multi-supplier cases, quantity discounts and capacity constraints that considered ADI. Based on the numerical test results, it appears that ADI has an effect to reduce total production costs. The results of the numerical tests also showed that the model was able to solve the problems of the production planning process for retailers who considered ADI.