An improvement of suppliermanufacture inventory system integrated with stochastic periodic review modeling for SMEs in Indonesia

SME LCR is one of the handicrafts in Yogyakarta, Indonesia. This produces several handicraft products such as storage baskets with various variants, and furniture. The process ordering raw materials for SMEs carried out when there a demand incoming order quantity based on material needs meeting product demand. study intends to provide recommendations improving governance overcome fluctuations during lead time reduce total cost supply chain inventory by implementing an integrated system. To meet aim, EOQ Probabilistic P system (Period Review Method) utilized. model distinguished into two models namely backorder lost sales. Next, Purchase Cost (Ob) Procurement Costs are applied model. research method comprises through 3 stages: pre-field stage, field advanced stage (laboratory analysis, data reporting). Given results regarding banana mendong supply, it can be observed that materials, reorder interval generate minimum 0.1470 years or 53 days IDR 263,721,081.72. Moreover, seen suggested generates compared policy individual model, which justifies economic feasibility this