Inventory is one of the important things in an agency or individual engaged in distribution. One of the main activities in a goods distribution service company is inventory control with the aim of minimizing inventory costs. The aim of this paper is to construct a mathematical model for warehouse inventory and optimize it to get the least cost. The proposed mathematical model is the EOQ (Economic Order Quantity) model. The model used is in a probabilistic environment. The step of the method i.e., determines the components of inventory costs, namely, ordering costs, transportation costs, storage costs, and purchasing costs. Then formulate a total inventory cost model and then proceed with the optimization of the model. And the last step is to do a numerical simulation as a real test of the model created.

Topics
Computer simulation, Mathematical modeling
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