Development Of Integrated Inventory Model Based On Optimized Fuzzy Sugeno Model

Abstract

Just in Time (JIT) purchasing has important role to solve the problem in manufacturing system. The problems that often occurred in JIT environment which includes maintaining a high quality product, small lot sizes, frequent of delivery, short lead time, and close supplier ties. The importance of establishing JIT purchasing with supplier is to solve the problem together. This issue is paralleled in resources dependence theory, which predicts how organization responds to uncertainty within their external environment. Based on the dependence with supplier, hence integrated inventory model is established. The purpose of integrated inventory model is to minimize total relevant cost which includes cost of ordering/ setup, holding cost, quality improvement investment and crashing cost by simultaneously optimizing the order quantity, lead time, process quality and number of deliveries. The current research proposes development of integrated inventory model based on optimized fuzzy logic model to forecast the number of production in response to uncertainty in demand. This development model is useful particularly for JIT inventory system to respond uncertainty in demand. Keywords: JIT, Purchasing, Demand, Fuzzy Logic, and Integrated Inventory model