Economic Order Quantity Model for Agricultural Products with Harvest Period

Subject Areas : Inventory Control

Yusuf Mauluddin ¹ , Hilmi Aulawi ² , Andri Ikhwana ³ , Dani Cahyadi ⁴ , Dewi Rahmawati ⁵

1 - Institut Teknologi Garut
2 - Institut Teknologi Garut
3 - Institut Teknologi Garut
4 - Institut Teknologi Garut
5 - Institut Teknologi Garut

Received: 2021-09-15 Accepted : 2022-05-03 Published : 2021-12-01

Keywords: Agricultural Products, Economic order quantity (EOQ), inventories,

Abstract :

This study aims to develop an Economic Order Quantity (EOQ) model for agricultural products with a harvest period. These agricultural products can be stored for a long period, such as coffee and rice. The developed model assumes that the product can only be supplied during the harvest period while the demand is continuously increasing throughout the year. The harvest period only takes place once a year. During harvest, product orders are made to meet demand during harvest and storage to meet demand during non-harvest periods. The storage process will require a warehouse with sufficient capacity to accommodate the same number of products as demand in the non-harvest period. The developed model optimizes the order time interval with a minimum total inventory cost. Based on the optimization results, it can be calculated the frequency of orders, the quantity per one order, the minimum warehouse capacity that must be prepared, and the total cost of ordering per year. Based on sensitivity analysis, changes in harvest and non-harvest periods have a significant effect on total costs.

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