Abstract
This study aims to determine the optimal order quantity of K71T welding wire for PT BMI's boiler production process to reduce storage and inventory costs. The Economic Order Quantity (EOQ) method is applied to calculate the optimal amount of material to be ordered in one period. The results show that the total inventory cost using the EOQ method is Rp. 89,060,000,- compared to the company policy of Rp. 290,840,000,-. The optimal number of orders is 407 boxes with a purchase frequency of 4 times per year and a safety stock of 181 boxes. The findings of this study can be used as a reference for other manufacturing companies that face similar procurement challenges to optimize their inventory management and reduce costs.
 Highlight :
 
 The study determines the optimal order quantity of K71T welding wire, reducing storage and inventory costs.
 The Economic Order Quantity (EOQ) method is applied, resulting in a total inventory cost of Rp. 89,060,000,- compared to the company policy of Rp. 290,840,000,-.
 The findings can be used as a reference for other manufacturing companies facing similar procurement challenges to optimize their inventory management and reduce costs.
 
 Keywords: welding wire, optimal order quantity, inventory management, procurement challenges, manufacturing companies
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