Raw Material Inventory Using the Economic Order Quantity (EOQ) Method
Persediaan Bahan Baku Menggunakan Metode Economic Order Quantity (EOQ)
DOI:
https://doi.org/10.21070/ups.2469Keywords:
Raw Material Inventory, Economic Order Quantity (EOQ), Total Inventory CostAbstract
PT Samawa Tirta Alam is a bottled sweet drinking water company. The problem with raw materials is the high total cost of inventory. High costs exist in ordering costs, namely transportation due to the fact that trucks have to board ships and the distance of the factory and the main highway is far away. Another problem is determining the optimal amount of raw material purchases due to fluctuating product demand. To solve the company’s problems, namely using the Economic Order Quantity (EOQ) method. The results of the calculation using the previous Rp25,490,200 from the previous ldr 79,214,400 obtained savings of around 68%. With the optimal number of orders of the 437 bags ot 21,850 kg and the frequency of ordering for 2 times a year. The planting inventory is 19 sacks or 900 kg and the order is placed again when there are 31 sacks or about 1550 kg left.
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