Abstract

To achieve profit, companies usually process raw materials into finished or semi-finished goods. Therefore, in this company, controlling and managing raw materials becomes an important factor influencing the smooth production process to achieve desired goals. Cow's milk is one of the popular agricultural products, and cheese is a dairy product consumed globally. PT Mazaraat Lokanatura Indonesia is a company that produces local Yogyakarta cheese and creamery products. The instability of organic milk quality from local farmers often negatively impacts the production process and the final quality of the company's British Cheddar Cheese products. This instability also affects raw material inventory planning, so the company must be more careful in maintaining the quality and quantity of organic milk stock to ensure optimal production. To address this issue, an analysis of raw milk inventory using the Economic Order Quantity (EOQ) method was conducted. This research began with observations and identification of problems related to raw material inventory management that could affect production efficiency and operational costs. Then, data collection was conducted regarding the demand amount, order time, ordering cost, and milk storage cost. The research results show that the application of EOQ is proven effective in optimizing inventory costs. Using EOQ allows the company to manage the optimal order quantity, significantly reducing total ordering costs by decreasing the order frequency.

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