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Controlling Raw Material Inventory of Bolts Using EOQ Method to Ordering and Storage Costs

Pengendalian Persediaan Bahan Baku Baut Menggunakan Metode EOQ untuk Biaya Pemesanan dan Penyimpanan

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DOI:

https://doi.org/10.21070/ups.8579

Keywords:

Economic Order Quantity (EOQ), Inventory Management, Ordering Cost, Holding Cost, Reorder Point

Abstract

Raw material inventory management is one of the important aspects in the operations of manufacturing companies, including PT. Eka Jaya Utama which is engaged in bolt production. The main problem faced by the company is the high inventory costs due to the imbalance between the number of raw material orders and production needs. To overcome this problem, this study applies the Economic Order Quantity (EOQ) method to determine the optimal order quantity that can minimize ordering and storage costs. This study uses a quantitative approach with primary data collection techniques through observation and interviews with inventory managers, as well as secondary data obtained from financial reports and company documents. The analysis was carried out by calculating the EOQ, determining the optimal ordering frequency, and identifying the reorder point. The results of the calculation using this method were Rp61,144,236 from the previous Rp80,118,000, resulting in savings of around 24%.

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Posted

2025-07-16