OPTIMIZATION MODEL TO DETERMINE THE LEVEL OF OPTIMUM PRODUCTION FOR MULTIPLE PRODUCTS OF SHORT-AGE OR PERISHABLE PRODUCTS CATAGORY
Dadang Arifin, Zaenal Muttaqien

Universitas Jenderal Achmad Yani

Abstract

This paper contains an optimization model to determine the optimum level of production for short-lived products or perishable products. In 2019 the author has developed an optimization model to determine the optimum production rate for single products for products with the short life or perishable products category. In this paper, the authors develop the model for multiple products or multi-product (multi-item). The variable costs considered in this model are the same as the single item model, namely, production costs, set-up costs, storage costs and expired costs. The model developed departs from a production system that adopts a batch production system. In this multi-item model, all products use the same facilities so that production activities for each item are carried out alternately by following a certain batch size. The optimization model developed is to determine the batch size of each item in each production cycle so as to minimize total costs, minimize scarcity and reduce buildup which results in expired products. The constraints considered are capacity, demand, and life time (product service life).
Model validation is done mathematically and empirically. Mathematically it is done using derivatives, while empirically uses examples of real cases in the field.
The author hopes that this model will provide practical benefits for practitioners and academics, especially students.

Keywords: optimal, deficiency, overstock, expiration, cost.

Topic: Engineering and Technology