Sutrisno, Sutrisno and Solikhin, Solikhin (2016) Integrated Supplier Selection and Inventory Control of Probabilistic Single Product Inventory System with Product Discount and Its Optimal Strategy via Stochastic Dynamic Programming. In: IORA International Conference on Operation Research, 27 August 2016, Bogor, Indonesia.

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Abstract

In this paper, we propose a stochastic dynamic optimization model to solve an integrated supplier
selection and inventory control of single product inventory system with product discount. Bu using
stochastic dynamic programming, we solve the problems which are determining the optimal supplier
and bring the inventory level as close as possible to a reference point simultaneously with minimal cost.
We give a numerical experiment to evaluate the model and to illustrate how the solution of the model
is. From the result, the supplier selection was solved and the inventory level of the product is sufficiently
closed to the reference point.

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