Inventory Level

Inventory Levels with Single Item Inventory Model Approach in Inventory control and maintenance is a common problem for all companies in any sector in a particular economy. The two fundamental questions that must be answered in controlling inventory are when to replenish stock and how much to order for replenishment. The supply model (Q, r) attempts to answer two questions under various circumstances. Research has shown, (1) that companies that ignore lead-time demand variability can incur large financial losses, (2) that the gamma distribution provides the most common fit for lead-time demand for various inventory items, (3) that the demand assumption a fixed waiting time or a normal estimate for it will often result in significant error (Namit and Chen, 1998). This research performs an efficient and accurate algorithm to solve (Q, r) inventory Inventory Level model with gamma waiting time request. Inventory is a fairly important asset of a company organization. In its control, it needs to be done carefully and precisely in order to minimize the total cost of inventory and maximize customer satisfaction. In reality, the inventory control policy faces several obstacles which are a tradeoff between minimizing the total cost of inventory and maximizing the service level for customers. In an inventory system that allows backorders, demand during lead time is an important measure in decision making. Companies that in their operations ignore the variability of demand during lead time will experience significant financial losses (Vinson, 1972 in Namit and Chen, 1998). Meanwhile, many of the existing supply models assume that demand during lead time is considered constant or follows a normal distribution. Whereas from several studies, it was found that the gamma distribution is the most common distribution of demand during lead time (Bagchi, 1986 in Namit and Chen, 1998). By looking at the above facts, an inventory control policy is needed that pays attention to the distribution of demand during lead time. Inventory Level Research with the Single Item Inventory Model Approach discusses determining the inventory level of Komatsu brand forklift spare parts which is able to minimize the total cost of inventory and improve service level. A case study was conducted by applying the existing spare part inventory model in the literature at a company, namely PT United Tractors. PT United Tractors is one of the official distributors and supporting products for special heavy equipment with the Komatsu brand