Determining the Economic Order Quantity of Air Compressor Spare Parts Using the Economic Order Quantity and Reorder Point Methods
Penentuan Order Quantity yang Ekonomis Sparepart Air Compressor dengan Metode Economic Order Quantity dan Reorder Point
DOI:
https://doi.org/10.21070/ups.8317Keywords:
Economic Order Quantity (EOQ), Inventory, Management, Reorder PointAbstract
Effective inventory management is crucial for maintaining smooth production without causing excessive stockpiling in warehouses and increased operational costs and inefficiencies. In 2022, PT. XYZ imported 54 units of Oil Engine Separators and in 2023 added 66 units of similar spare parts. This increase of about 20% from the previous year led to an accumulation of spare parts in the warehouse due to orders exceeding storage capacity. This study aims to determine the required quantity of compressor machine components using the Economic Order Quantity (EOQ) and Reorder Point (ROP) methods. The results show that applying these two methods can reduce inventory costs from Rp. 322,362,150 to Rp. 33,020,408, saving the company Rp. 289,341,742. This saving enhances cost efficiency in the company and prevents stockpiling issues.
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