Designing Inventory Policy for Formula and Enteral Food in Hospital Using Simulation

High number of products which stored in the warehouse will lead to the high inventory value that could harm the business. One of the public hospitals in Bandung city has the similar problem. A certain number of products wasted due to expired items and very high number of inventory level in the warehouse lead to the cash flow problem. In this research, simulation model was developed for inventory system to cope with the increasing complexity by expiration date parameter. The simulation model was applied to Formulas and Enteral Food at Nutrition Department. One of the main objectives was to minimize the inventory level of the products under study. The tool that used in this research was Arena Simulation. The simulation shows that periodic review policy provides the best result compared to the current method and continuous review policy. Besides the inventory policy, hospital has more information about system characteristics to treat and anticipate an issue of expired products.