Abstract
A company engaged in aluminum metal makes aluminum frame doors and windows as one of its products. For the purposes of the production process of aluminum frame doors and windows, aluminum metal raw materials are needed. Control of raw material stocks in PT. Al so far still needs to improve its efficiency due to the excessive accumulation of raw materials due to the purchase of raw materials that are still not in accordance with the needs of raw materials for production. Such problems interfere in the production process at the enterprise. Therefore, a careful calculation method is needed accompanied by efficiency and is able to reduce the cost of raw material stock to a minimum. In this study, the Economic Order Quantity (EOQ) method was used to be applied to reduce stock costs to a minimum in terms of storage costs and ordering costs. In this study, data on the cost of procurement of raw materials carried out by the company before the implementation of EOQ amounted to Rp. 5,681,128,000 per year, while after using the EOQ method the total cost was Rp. 1,533,187,750 per year, so that the total savings were Obtained was Rp. 4,147,940,250 per year
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
