Cost Efficiency Through the use of the EOQ Method

Abstract

This study aims to analyze and show how to calculate EOQ and prove that the use of the EOQ method can make inventory costs efficient because the number of purchases is not excessive and not lacking, the frequency of purchases and the exact time of reordering. The theory underlying this research is the theory of inventory management, especially the EOQ Single Item Method. The analysis technique used is descriptive analysis using the EOQ Single Item method to calculate Optimalization EOQ , purchase frequency (N), and Reorder Point (ROP) The results showed that inventory cost efficiency can be achieved through the use of the EOQ method which is indicated by the optimalization EOQ, smaller purchase frequency and cheaper inventory costs compared to determining the amount of inventory, purchase frequency, time of order and inventory costs POX’Tempe Business