Abstract:

This paper contains a decision-making model to determine production quantity for short-lived products or perishable products. The decision model is in the form of a mathematical formulation or as an algorithm. This research departs from the real problem that short-lived products have a considerable amount and are very closely related to daily life. The majority of these products are related to daily consumption such as processed food or beverage products, fruits and vegetables. The facts show that the number of companies engaged in this field is very large, ranging from large-scale companies, medium scale and small scale. Therefore this decision-making model is important for companies, in order to be able to improve their performance by making an appropriate or optimal production strategy. The unoptimal production levels will cause problems such as shortages, overstock which results an expired products, and wasteful costs. Departs from the real problem, then conducting a literature study to find out whether the model to be developed had been developed by previous researchers. The researcher looks for a model that is relevant to this case, at least getting a model that has similarities to be used as an additional reference. The author hopes that, this model will provide practical benefits for practitioners and academics, especially students.

Keywords Optimal, Stockout, Overstock, Expired, Costs