Inventory simulation model of frozen-meat for food-safety program

Abstract

This research discusses the application of inventory simulation and optimization model for food safety program in Indonesia. Frozen meat is a complementary commodity for fresh meat that has an inadequate supply in the country. The disadvantage of frozen meat is that it needs to be stored in a refrigerator to maintain its quality and thus increases the cost. Therefore, an appropriate inventory policy is crucial to minimize the cost. In order to deal with this situation, a Monte Carlo simulation followed by an optimization model is proposed. Specifically, the Moving Average and the Winter Methods are used to predict the demand in the future. The results show the best inventory policy thus the cost is minimized and the national needs are satisfied.