Efficiency Improvement in Raw Material Inventory Management Using EOQ and POQ (Study Case: PT. Varia Usaha Beton)

PT Alba Unggul Metal faced several operational problems in its production activities. In this study, the focus is on standard products owned by PT Alba Unggul Metal, especially SDG type cabinets, due to delays in delivery schedules caused by scarcity of raw materials, most are SDG type cabinets. The purpose of this study was to plan the raw material requirements for SDG type cabinets so that there is no scarcity of raw materials in the warehouse. The method used is the Economic Order Quantity method, the Period Order Quantity method and the Min-Max method. After analysis and discussion, it is known that the Economic Order Quantity method is the most optimal method compared to the Period Order Quantity method and the Min-Max method. Then the Company can better control inventory and delivery time of raw materials by using the EOQ method. As an example of the calculation for an SD SPCC plate measuring 0.7mm x 2440mm x 1220mm with an optimal order quantity of 512 pieces for one order, 157 safety stocks, reorder point when stock is 493 sheets, and order frequency 24 times a year. After implementation and data sampling for three months in April, May and June 2023 there was no shortage of raw materials which caused a delay in the delivery schedule for SDG type cabinets.Keywords : Inventory control, Economic Order Quantity, Period Order Quantity, Min-Max, Reorder Point, Safety Stock.

This study uses the Material Requirement Planning method. By measuring lot orders Lot For Lot (LFL), Economic Order Quantity (EOQ), Period Order Quantity (POQ), and Silver Meal (SM), the purpose of this study is to determine how UMKM Cening Jaya planning the supply of raw materials for production. To determine the best method for Cening Jaya UMKM to plan their raw material inventory. The research method used is descriptive and qualitative. The data collection techniques used are interviews, observation and documentation. The data analysis technique used in this research is to collect information about the amount of sales data in May 2020 to April 2021, analyze the data using lot orders Lot For Lot (LFL), Economic Order Quantity (EOQ), Period Order Quantity (POQ), Silver Meal (SM). The results of the research on raw material planning with lot size Lot For Lot of raw material needs in the following month or once a month, Economic Order Quantity by determining raw material orders of 224 kg once ordered, Period Order Quantity by determining raw material orders every 3 months, Silver The meal for determining the order of raw material for coffee beans is 1,108 kg once ordered within 1 year. From the conclusion above, Cening Jaya UMKM is better to use lot size Period Order Quantity with orderquantity as much as 2 months to order with a total cost of Rp. 2.007.000 due to avoid shortage of raw materials.

Sosis Solo Gajahan is a business operating in the food industry, the problem faced by the company is whether the control of raw material inventory for Sosis Solo Gajahan is efficient and whether the application of the Material Requirement Planning (MRP) method can streamline the cost of raw material inventory for Sosis Solo Gajahan. The aim of this research is to consider the company's efficiency in raw material inventory costs and can be used to make decisions related to the efficiency of raw material inventory costs. By using the Material Requirement Planning (MRP) method which consists of the Lot For Lot (LFL), Economic Order Quantity (EOQ) and Period Order Quantity (POQ) methods. Based on the results of the total cost calculation according to company policy of IDR 5,131,580 and based on the Material Requirement Planning (MRP) method, which consists of the Lot For Lot (LFL) technique of IDR 696,000, the Economic Order Quantity (EOQ) technique of IDR 1,290,360, and the Period Order Quantity (POQ) technique of IDR 696,000, the researchers concluded that the most efficient method applied at Sosis Solo Gajahan was the Lot For Lot (LFL) and Period Order Quantity (POQ) methods. The Lot For Lot (LFL) method produces inventory costs of IDR 696,000 and the Period Order Quantity (POQ) method produces inventory costs of IDR 696,000 and it is best to calculate raw material inventory control costs using the Material Requirement Planning (MRP) method with the Lot For Lot technique ( LFL) and Period Order Quantity (POQ) techniques, because they can achieve efficient raw material purchasing costs compared to current company policies.

The research aims to determine the optimal order quantities of raw materials using Economic Order Quantity (EOQ), the total cost of raw material inventory, reorder point, order frequency, and application of the EOQ method on the CV. XYZ Kupang in an effort to optimize inventory costs. The data used in this study consisted of primary data and secondary data both qualitatively and quantitatively related to raw material supply. Primary data were obtained through direct observation and interviews with various key respondents at CV. XYZ Kupang. Secondary data were obtained from the documents and reports from Management Company. The results of this study indicate that the optimal quantity of raw material orders at CV. XYZKupang is 63.80 m3 in 2017, 63.04 m3 in 2018, and 72.80 m3 in 2019. The total cost of the company’s raw material supply that issued if EOQ policy appliedRp. 32.267.554 in the year 2017, Rp. 24.507.185 in the year 2018, and Rp. 28.020.251 in the year 2019.CV. XYZ Kupang must perform an order back in the level of inventories of 16.74 m3 in 2017, at 10.08 m3 in 2018, and 9.82 m3 in 2019.6.90 m3 in 2017, 6.20 m3 in 2017, and 5.75 m3 in 2019. CV. XYZ Kupang had to order as many as 9 times in the year 2017, 8 times in the year 2017, and 8 times in the year 2019. Thus the number of all bookings in the year 2017 of 7.09 m3, by the year 2018 of 7.88 m3 and in the year 2019 of 9.1 m3.CV. XYZ Kupang can optimize the cost of supplies, neither order of the cost of storage. If EOQ method applied, there is a saving from the total cost of the inventory in the year 2017 is Rp. 72.523.229, by the year 2018 is Rp. 68.476.912, and in 2019 is Rp. 76.468.558.

PT Petrokimia Gresik is the most comprehensive fertilizer manufacturer in Indonesia, and it produces a wide range of fertilizers and chemicals for agro-industry solutions. One of its products, NPK Phonska fertilizer, is always the product with the highest demand every year. In 2023, the demand for this fertilizer reached 1,972,380.55 tons. The main problem that often occurs is the overstocking and stocking out of raw materials. This condition not only results in increased storage costs but also threatens production continuity. Therefore, optimal inventory control is the company's main goal, which is to ensure the availability of raw materials in a timely manner and minimize costs. This study aims to find the most effective inventory control method in overcoming these problems. The EOQ (Economic Order Quantity) and POQ (Periodic Order Quantity) methods were chosen as alternative solutions. This research uses quantitative methods with data collection through field observations. The results showed that the most right inventory control method to reduce total inventory costs is the EOQ method, with a total cost of Rp7,043,999,215. This figure is lower than the POQ method of Rp11,071,943,308 and the Min-Max method used by the company of Rp23,217,085,977. The EOQ method is proven to be more efficient in managing inventory, resulting in cost savings of up to 69.7% or Rp16,173,086,762. Therefore, the application of the EOQ method is a good choice to be implemented in the company. Keywords: Raw Material Inventory, Inventory Control Methods, Economic Order Quantity (EOQ), Periodic Order Quantity (POQ), Minimum-Maximum (Min-Max)

Raw material inventory is an important factor in supporting the company's production activities. Raw material purchase scheduling can increase productivity. When the company is faced with continuous demand, supplies control should be done optimally. This research aims to carry out the control of raw materials method of Economic Order Quantity in the casing of weaving in the Jenggolok hamlet, Gedangkulut Village Cerme-Gresik subdistrict. This type of research is qualitative research. By using the Economic Order Quantity approach, the ordering of optimal raw materials, Reorder Point, and Safety stock can be found. Based on the results of the study indicate that the purchase of raw materials using the Economic Order Quantity method is more optimal than the raw material inventory method used in the previous Jenggolok hamlet. This research can be taken into consideration by the weaving sarong business in applying the EOQ method to determine the optimal order quantity of raw materials and can reduce inventory costs incurred. This research is only done on controlling the supply of raw materials of weaving holster business in Jenggolok Hamlet cerme-gresik sub-district.

The quality of a product depends on how the manufacturer applies the supply of raw materials used. The application of a good supply of raw materials can expedite the production process. There are many factors that affect the smooth production process. One of the factors that can affect the smoothness of the production process is the supply of raw materials. Raw materials in the production process include raw materials, semi-finished materials and finished goods. In running its business, Kedai Surabi Gapura experiences difficulties in terms of implementing raw material supplies considering the large number of orders that the shop receives every month so that Kedai Surabi Gapura cannot determine the number of priority raw material needs that must be purchased according to production needs. Surabi Gapura requires an appropriate method of supplying raw materials for production. By applying the raw material inventory classification method, it is hoped that Kedai Surabi can find out the priority classification of raw materials used based on raw material prices, in this case related to capital. Shop owners need to implement raw material inventory planning and control because to find out what the difference is between the costs incurred for purchasing raw materials and the amount of raw material requirements according to the daily production target. In addition to the raw material inventory classification method needed in an effort to expedite the production process, the shop also needs to apply the right raw material ordering method in order to save costs incurred such as transportation costs for sending raw materials, raw material storage costs, ordering costs, raw material maintenance costs arising from inventory. By applying the EOQ method for reordering raw materials, it is hoped that the Surabi Gapura Shop will place orders in economical quantities to determine the point of reordering raw materials so that the costs incurred by the Surabi Gapura Shop are efficient.The research method used in this study is to use a quantitative descriptive method. In this study the method used aims to determine the appropriate method of inventory of production raw materials with the raw material inventory classification method and the correct raw material ordering method in order to save costs incurred such as transportation costs for sending raw materials, raw material storage costs, ordering costs, maintenance costs for raw materials arising from inventory. By applying the EOQ method for reordering raw materials.From the results of calculations using the POM QM For Windows software based on the results of data processing using the ABC class classification analysis method for raw materials from 15 types of raw materials, they can be classified based on their respective classes according to the amount and investment value or rupiah spent to obtain these raw materials. Then by using the calculation of the EOQ method with the POM QM For Windows software, business owners can find out the optimal number of orders in the production process, namely the optimal number of orders is at 8,869.52 units, that is, if the demand in one day is 250 units.

Risma Brownies & Cake Gemolong is a business operating in the food industry. The problem that the company is hoping for is whether control of raw material inventory at Risma Brownies & Cake Gemolong is efficient and whether the MRP method can make control of raw material inventory at Risma Brownies & Cake Gemolong efficient. The aim of this research is to analyze the efficiency of raw material inventory control at Risma Brownies & Cake Gemolong and to analyze the application of the MRP method to make raw material inventory control efficient at Risma Brownies & Cake Gemolong. The method used in this research is the Material Requirement Planning (MRP) method, with data analysis techniques using Lot For Lot (LFL), Economic Order Quantity (EOQ), and Period Order Quantity (POQ) techniques. The data required is a general description of Risma Brownies & Cake, organizational structure, production process, raw material usage data, raw material inventory data, holding cost data, and ordering cost data. Data collection techniques using interviews. Based on the results of the research that has been carried out, the researcher concluded that the most efficient method applied at Risma Brownies & Cake is the Period Order Quantity (POQ) method. The LFL method produces inventory costs of IDR 468,000, the EOQ method produces inventory costs of IDR 3,663,000, while the POQ method can produce inventory costs of IDR 468,000

Risma Brownies & Cake Gemolong is a business operating in the food industry. The problem that the company is hoping for is whether control of raw material inventory at Risma Brownies & Cake Gemolong is efficient and whether the MRP method can make control of raw material inventory at Risma Brownies & Cake Gemolong efficient. The aim of this research is to analyze the efficiency of raw material inventory control at Risma Brownies & Cake Gemolong and to analyze the application of the MRP method to make raw material inventory control efficient at Risma Brownies & Cake Gemolong. The method used in this research is the Material Requirement Planning (MRP) method, with data analysis techniques using Lot For Lot (LFL), Economic Order Quantity (EOQ), and Period Order Quantity (POQ) techniques. The data required is a general description of Risma Brownies & Cake, organizational structure, production process, raw material usage data, raw material inventory data, holding cost data, and ordering cost data. Data collection techniques using interviews. Based on the results of the research that has been carried out, the researcher concluded that the most efficient method applied at Risma Brownies & Cake is the Period Order Quantity (POQ) method. The LFL method produces inventory costs of IDR 468,000, the EOQ method produces inventory costs of IDR 3,663,000, while the POQ method can produce inventory costs of IDR 468,000

This research is head to exam raw materials control analysis at “SANGRAI R.O” Home Industry. The result of this research are using descriptive kuatitative method, the result form of numbers from of calculation that have been impelemted and compared with company”s calculation, the sample for this research got by doing interview, observation, and company’s file documentation. The result of this research reveals optimal raw materials by using EOQ (Economic Order Quantity) method with some calculations, that concern to ordering frequency, reoder quantity, economic order quantity, and total inventory cost, calculation with EOQ method help the company to save their cost with 2:15 compared to their konvesional policy

PT. XYZ is a company that produces cardboard packaging. The product that is most in demand by customers is snack packaging. Snack packaging products have an erratic demand that affects the production process and ordering of raw materials. Therefore, companies need a more effective improvement proposal design starting from forecasting, inventory, distribution, production planning, and ERP simulation. The data needed to start the research are the raw materials used, data on demand for snack packaging products for the past 1 year, lead times for raw materials, machines used, and other data. Data processing begins with forecasting using the Double Moving Average, Single Moving Average, Weight Moving Average, Double Exponential Smoothing, Single Exponential Smoothing, Cyclic, Linear Regression, and decomposition methods followed by validation and verification of forecasting methods Mean Absolute Deviation, Mean Square Error, Mean Absolute Percent Error, and Standard Error of Estimate. Forecasting results that have been verified are followed by aggregate planning, Rough Cut Capacity Planning with Capacity Planning using Overall Factors, Bill of Labour Approach, Resource Profile Approach, safety stock methods, Material Requirement Planning with the Least Unit Cost, Lot for Lot, Silver Meal, Economic Order Quantity, Period Order Quantity, Capacity Requirement Planning, Distribution Requirement Planning, and Enterprise Resource Planning methods. The proper forecasting method used is the decomposition method which has the least error compared to PT. XYZ methods. The calculation of mixed aggregate planning (overtime and shifts) is the right method because it costs the least total cost, namely ${\$}$ 34023.54. The results of Capacity Requirement Planning and Rough-Cut Capacity Planning calculations do not indicate a lack of capacity to meet the demand for the Master Production Schedule. The proper Material Requirement Planning method is the Period Order Quantity lotsizing method with a 47.6% savings compared to PT. XYZ. Proper distribution planning using the Distribution Requirement Planning method with a savings of 36.3% compared to PT. XYZ methods.

This research examines raw material inventory control at Hendhy's Brownies. Inventory management analysis is carried out using the Min-Max, Economic Order Quantity (EOQ) and Period Order Quantity (POQ) methods. Based on data analysis and processing, it is known that raw material inventory management using the min-max method has an order quantity of 13,231 kg with an ordering frequency of 5 times and a total ordering cost of Rp. 5,325,387. By using the Economic Order Quantity (EOQ) method, an order quantity of 9001 kg was obtained with an order frequency of 5.3 times and a total order cost of Rp. 3,420,527 Using the Periodic Order Quantity (POQ) method, the order quantity is 4252 kg, the order frequency is 20 times, and the total order price is IDR 3,071,030. Based on the results of the three methods, the EOQ method is the most optimal inventory control method compared to the other two methods. So that the results obtained through the EOQ method can improve forecasting of raw material shortages for companies, so that the use of raw materials becomes optimal

One of the main raw materials in the production of uyel crackers at Raya I Factory is tapioca flour. Based on most previous studies, the EOQ method has a function to analyze the inventory of raw materials in the warehouse, including for determining the economic order quantity and also optimizing costs. July to September 2024 is the time for conducting research at Raya I Cracker Factory located in Manisrenggo District, Kediri City. This study analyzed three variables, namely the need for the quantity of tapioca flour raw materials, ordering costs and storage costs. The results of the EOQ method-based study obtained that this business should determine the most economical single order quantity at a volume of 46,188 kg for inventory management in the period October 2023 to September 2024. During this period, Raya I Cracker Factory experienced a decrease in inventory management costs of Rp. 46,212,246.

: The aim of this study is to investigate how effectively the company manages its raw material inventory using the EOQ (Economc Order Quanity) method, in comparison to the practices implemented by Arista Hotel Palembang. The method used in this study is quantitative and qualitative analysis methods. Data analysis begins by analyzing the comparison of the quantity of raw materials, the total cost of purchasing raw materials and the cost of raw materials between what The Arista Hotel Palembang has done with the Economic Order Quantity (EOQ) Method. Based on the results of the study, it is known that using the Economic Order Quantity (EOQ) method can be more efficient when compared to what The Arista Hotel Palembang does, the quantity and frequency of purchasing raw materials is less but still takes into account safety stock and reorder points. Hence, the production process is not interrupted. In addition, the purchase cost, ordering cost and storage cost of raw materials are less. Thus, it can create efficiency in raw material inventory costs. Arista Hotel Palembang in controlling raw material inventory should use the EOQ (Economic Order Quantity) method to be more efficient, and take into account safety stock and reorder points hence there is no excess inventory of raw materials (Raw Material). Abstrak : Tujuan diadakannya penelitian ini adalah untuk mengetahui sejauh mana tingkat efiesiensi perusahaan dalam melakukan pengendalian persediaan bahan baku dengan metode EOQ (Economc Order Quanity) disandingkan dengan yang sudah dilakukan The Arista Hotel Palembang. Metode yang digunakan adalah metode analisis kuantitatif dan kualitatif. Analisis data diawali dengan melakukan analisis perbandingan kuantitas bahan baku, total biaya pembelian bahan baku dan biaya bahan baku antara yang sudah dilakukan The Arista Hotel Palembang dengan Metode Economic Order Quantity (EOQ). Berdasarkan hasil penelitian diketahui bahwa dengan menggunakan metode Economic Order Quantity (EOQ) dapat lebih efisien bila dibandingkan dengan yang dilakukan The Arista Hotel Palembang, kuantitas dan frekuensi pembelian bahan baku lebih sedikit namun tetap memperhitungkan safety stock dan reorder point, sehingga proses produksi tidak terganggu. Selain itu biaya pembelian, biaya pemesanan serta biaya penyimpanan bahan baku lebih sedikit sehingga dapat menciptakan efisiensi pada biaya persediaan bahan baku. The Arista Hotel Palembang dalam melakukan pengendalian persediaan bahan baku hendaknya menggunakan metode EOQ (Economic Order Quantity) agar lebih efisien, serta memperhitungkan safety stock dan reorder point agar tidak terjadi kelebihan persediaan bahan baku (Raw Material).

The Bakpia Wirda Karanganyar Company is a business that operates in the food sector, especially bakpia products, in the production process it requires a lot of raw materials which must be maintained so that the production process can run smoothly. Inventory of raw materials is the main factor in a company to support the smooth production process, both in large and small companies. The key to the production process being able to run smoothly is by controlling optimal and sufficient raw material supplies. A company needs inventory, without inventory the company will run the risk of not being able to meet consumer needs. The aim of this research is to analyze the efficiency of controlling supplies of raw materials for wheat flour and green beans using the Material Requirement Planning (MRP) method, which consists of the Lot For Lot (LFL), Economic Order Quantity (EOQ), and Period Order Quantity (POQ) methods. ). The results of the research show that the total cost of raw material inventory according to the policy of the Bakpia Wirda Karanganyar business owner is IDR 1,735,000.35 greater than the calculation using the MRP method. The total cost of raw material inventory using the Lot For Lot (LFL) method is IDR 348,705.84, EOQ is IDR 309,203.31 and using the POQ method is IDR 348,705.84. From the results of calculating the total cost of raw material inventory, the MRP method can streamline raw material inventory costs, especially the EOQ method.