Optimal Raw Material Inventory Analysis Using Markov Decision Process with Policy Iteration Method

Inventory of raw materials is a big deal in every production process, both company and home business production. In order to meet consumer demand, must be able determine the amount inventory that should provided. The purpose this research choose an alternative selection ordering produce maximum with minimum costs. material referred study pandan leaves used make mats. Analysis was Markov decision process policy iteration method by considering discount factor. From analysis conducted, it obtained policies taken producers results can consideration for actors location deciding optimal obtain operational cost.