Inventory Estimation Model with Fuzzy Analytic Hierarchy Process and Neural Network Approaches in the Wiring industry

Abstract

Inventory control is very important in company bussiness. Based on data from the Ministry of Industry, the electricity cable industry is expected to experience growth of around 10% -15%. And it is predicted that this increase will continue to grow for the next few years, given that Indonesia is developing in terms of infrastructure and industry. To keep good in track, a good inventory planning is needed so that the goals are achieved to meet customer needs. Several previous studies on the predictions of the quantity of future product stocks, concluded that inventory, both in the form of raw materials, in-process goods, semi-finished products and finished products. The main contribution of this research is to make decision support models by predicting orders from customers so as to minimize the risk of inventory failure. In order for inventory management to be more efficiently assessed according to experts, the opinions of experts. Therefore, a combination of Fuzzy Analytical Hierarchy Process (Fuzzy AHP) and Artificial Neural Network (ANN) is carried out for inventory management.