Economic Order Quantity Calculation Research Articles

Soybean Inventory Management in the Production Process of the Semoga Laris Tofu Factory

Semoga laris tofu factory is one of the food industry businesses, where the factory processes soybeans into tofu products. The problem that occurs in the management of inventory at the semoga laris tofu factory is that the factory tends to be unprepared for unexpected circumstances, which is caused by the fact that the value of safety stock on raw material inventory has not been determined. At the semoga laris tofu factory hopefully laris there are also capital restrictions on the purchase of raw materials, where the available capital is IDR 30,000,000. This study aims to evaluate the inventory management carried out by the factory by comparing the Min-Max Method, the Economic Order Quantity (EOQ) Method with the tofu factory policy, which after obtaining the optimal Q is then calculated using the working capital constraint method if the results of the optimal Q cannot be met by the available capital. Based on the results of calculations carried out in this study, calculations with the Basic EOQ method have more optimal Q results compared to other methods. However, the basic EOQ calculation exceeds the existing capital limit, because the cost of purchasing raw materials costs IDR 105,450,000. Based on the existence of capital-related restrictions, the calculation is continued with the capital constraint EOQ method. EOQ with this capital constraint has a quantity for one order of 52 bags with a capital cost of IDR 29,640,000.

Analisis Pengadaan Persediaan Bahan Baku Pada Umkm Otr Laundry Dengan Menerapkan Metode Perhitungan Economic Order Quantity (EOQ)

This study aims to determine and analyze the control of the main raw material inventory at OTR Laundry with an inventory management policy using the Economic Order Quantity (EOQ) method. The study focuses on inventory management at OTR Laundry located at Jalan Ciseke, Jatinangor, Sumedang. This study uses a quantitative approach. Primary data in this study were obtained through in-depth interviews with the owner of OTR Laundry and direct observation in the field. Secondary data were obtained from inventory records and the company's financial reports. Data collection techniques used were interviews, observations, and documentation. Data analysis was carried out by calculating optimal inventory requirements using the EOQ method and comparing them with the inventory policy implemented by OTR Laundry. The calculation results show a comparison between the total cost of fragrance inventory calculated based on the OTR Laundry policy and the EOQ calculation method. Savings using the EOQ method compared to the OTR Laundry policy on inventory cost expenditure amounted to Rp313,764. The results of this study are expected to provide recommendations for OTR Laundry in increasing the efficiency of managing the main raw material inventory and reducing operational costs.

Analysis of Raw Material Inventory Control with A Tabular Approach and Formula Approach Economic Order Quantity (EOQ) to Optimize The Cost of Soybean Raw Material Inventory At The Rizqy Putra Fried Tofu Factory

Inventory management is a crucial aspect in the operations of the manufacturing industry, including in fried tofu factories such as the Rizqy Putra Fried Tofu Factory. The main raw material, namely soybeans, must be managed efficiently to ensure smooth production and minimize the costs incurred. This research aims to determine the inventory control of soybean raw materials applied by Rizqy Putra Fried Tofu Factory, the total inventory cost, and the optimal quantity of soybean raw material orders. This research is quantitative research with a comparative descriptive analysis. The data processed are the inventory purchase and usage reports of soybean raw materials at Rizqy Putra Fried Tofu Factory in 2023. The data analysis method used in this research includes two approaches: the tabular approach and the formula approach with the calculation technique of Economic Order Quantity (EOQ). Based on the results of the research, the inventory control method applied by Rizqy Putra Fried Tofu Factory is the traditional or conventional method, where the total inventory cost of soybean raw materials is Rp. 18,720,000 with details of storage costs amounting to Rp. 18,000,000 and ordering costs of Rp. 720,000 per year, and an ordering frequency of 48 times with an average order quantity of 5,875 kg. Meanwhile, according to the calculation of the formula approach EOQ, the optimal order quantity is 2,880 kg, with an ordering frequency of 24 times and the total inventory cost incurred is Rp. 734,387. The conclusion of this research indicates that based on the calculation of the EOQ formula approach, the total inventory cost of soybean raw materials is more optimal compared to the conventional method applied by Rizqy Putra Fried Tofu Factory.

PENGENDALIAN PERSEDIAAN SPARE PART BIDANG MEKANIKAL DAN ELEKTRIKAL DENGAN METODE ACTIVED BASED COASTING (ABC) DAN ECONOMIC ORDER QUANTITY (EOQ) PADA PT. STP UNIT SOBO BANYUWANGI

PT. Suri Tani Pemuka (STP) is a pond company in Banyuwangi that has various departments according to their tasks and functions, one of which is the mechanical and electrical (ME) department. In carrying out its tasks, the ME department heavily relies on the need for spare parts in repairing machine breakdowns in the workshop. However, there is a constraint faced, namely the delay of spare parts in repairing water turbine machine breakdowns due to lack of inventory control, especially for water turbine machine spare parts. Therefore, the Active Based Coasting (ABC) and Economic Order Quantity (EOQ) methods are used to solve this problem. The aim of this research is to determine the level of spare parts inventory based on cost, the level of spare parts inventory based on forecasting results, and to determine the ideal economic ordering calculation in spare parts inventory. The results of implementing ABC still show delays in spare parts inventory. After being improved using EOQ, the EOQ calculation results are as follows: Gear box gear 13 units, Gear box bearing 41 units, Turbine fan 6 units, Electric motor bearing 19 units, Seal cover 19 units, Oil seal 38 units, Turbine clutch 4 units. The implementation of the EOQ method in the inventory system or application shows that its use can reduce the expenditure of ordering goods more efficiently and effectively than relying solely on the ABC method.

ANALISIS PENGENDALIAN PERSEDIAAN BERDASARKAN ABC CLASS-BASED DENGAN METODE ECONOMIC ORDER QUANTITY (EOQ) DAN REORDER POINT (ROP)

Inventory is an important item or asset owned by the company. Sufficient supplies must be maintained. Therefore, it is important to carry out good inventory control by carrying out effective, efficient and economical inventory planning. This research aims to 1) determine the inventory control in J&L clinic, 2) determine the grouping of beauty product in dividing into class A, B and C using Class-Based ABC method, 3) economical order quantity and time to reorder beauty product using the calculation of Economic Order Quantity (EOQ) and Reorder Point (ROP) methods in J&L clinic. The research method used is qualitative method with a descriptive type of research. Data collection technique through beauty product inventory documents, interviews and observations. Subjects or informants in this research is head of warehouse, warehouse staff, and admin staff in J&L clinic. The results showed that the control of the supply of beauty products carried out at the J&L clinic was quite optimal. Inventory planning that has been done is quite good. By looking at the number of requests and previous orders to meet the needs of the availability of goods in the warehouse. The result of grouping the results of class-based abc analysis based on demand and investment value for class A group has the highest number of requests amounting to 78,59% and 77.90% of the total investment value. Class B group has a total demand of 15.98% and 16.93% of the total investment value. class C group has a total demand of 5.44% and 5.17% of the total investment value. The results of the calculation of the EOQ method show that by using the EOQ method, the optimal number of orders for beauty products is more every time you make an order, but the frequency of ordering is less than the company's policy. The ROP method is determined to determine the time of reordering and added safety stock.

ANALISIS PENGENDALIAN PERSEDIAAN BAHAN BAKU DENGAN MENUNJANG KEEFEKTIFITASAN PROSES PRODUKSI MEUBELAIR PADA PERUSAHAAN UD. JAYA ABADI PUTRA KEDUNGPRING LAMONGAN

: This research to determine the policy of controlling raw material inventory in a company if it uses the Economic Order Quantity (EOQ) method with current company policy. The data used in the form of data about the main raw material needs and the costs incurred in ordering and storing during 2017-2019. Data collection techniques by examining company documents. The research method used is descriptive discussion that is to make a systematic picture using the object under study. The results of the analysis are known to control raw material inventory at UD. Jaya Abadi Putra Kedungpring Lamongan can be concluded as follows (1) The optimal number of raw material inventory purchases using the economic order quantity method in 2017 is 176.93 m3 with a purchase frequency of 16 times, in 2018 amounting to 170.58 m3 with purchase frequency 16 times, in 2019 is 165.72 m3 with a purchase frequency of 16 times. And the total cost of raw material inventory of the company in the calculation of economic order quantity in 2017 is Rp. 962,606.69 in 2018 amounting to Rp. 1,063,484.4, in 2019 amounting to Rp. 1,112,250,3. (2). Safety stock / Safety Stock according to the results of the calculation of economic order quantity in 2017 is 29 m3, in 2018 is 24.33 m3, in 2019 is 19.84. Reorder points according to the calculation of economic order quantity in 2017 amounted to 57.14 m3, in 2018 amounted to 52.23 m3, in 2019 amounted to 46.96 m3.

PENGENDALIAN PERSEDIAAN BAHAN BAKU TEBU DI PG X

Sugarcane is one of the plantation crops which is used as raw material for making sugar. The efficiency of inventory is very important for a sugar factory. The purpose of this study is to determine the order level, order frequency, the amount of safety stock (Safety Stock), re-order points (sugarcane raw material) which is economical and to know the total inventory cost (Total Inventory Cost) of sugarcane raw material economical in PG X. The method of determining the area of ​​this research was carried out intentionally (purposive). The research method uses the descriptive-analytic method. The analytical tool used is Economic Order Quantity (EOQ), Re-Order Points (ROP), Safety Stock (SS), and Total Inventory Cost (TIC). The results of the 2018 and 2019 EOQ calculations show it is not yet economical. The 2018 EOQ calculation was 1.688,79 tons greater than the number of orders made by PG X by 1.483,9 tons and the 2019 EOQ calculation was 3.074 tons greater than the number of bookings made by PG X by 976,6 tons. The value of the safety stock in 2018 amounted to 1.483,9 tons and in 2019 it was 976,6 tons. The value of ROP in the supply of raw sugar cane in 2018 was 2.967,8 tons and in 2019 it was 1.953,2 tons. The 2018 TIC value is Rp. 139.031.870 smaller than the cost of inventory incurred by the company of Rp. 158.302.102 and the 2019 TIC value of Rp. 208.014.632 less than the cost of inventory incurred by the company of Rp. 654.250.185. The results of the last two years calculations indicate the inefficiency of orders made because it causes the frequency of orders is greater and the inventory costs incurred by PG X are higher., so with economic calculations, the order frequency will be less and the total cost of inventory will be lower.

Calculation of EOQ (Economic Order Quantity) In Optimizing the Inventory Level of Dacron at Mell Toys’ Home Industry

Inventory control is very important so that the production can operate run well, one of the inventory controls is by using the EOQ method (Economic Order Quantity) on the purchase of raw materials. The purpose of the research is to optimize inventory costs in the manufacturing of Mell Toys home industry and to find out the total optimal of raw material orders. The method used in this study is a quantitative method. The data used in the study were obtained from interviews. Data will be calculated manually obtained from the company using the EOQ method approach. This research produces data using EOQ the number of orders for raw materials is 3885 kg, this is greater than the company’s purchasing policy but with the calculation of EOQ, the total inventory cost can be saved from Rp. 4.800.000 to Rp. 424.250,8671. So using EOQ in purchasing raw materials can optimize inventory costs in Mell Toys home-made doll industry.

ANALISIS BIAYA PERSEDIAAN BAHAN BAKU IKAN DAN PERHITUNGAN ECONOMIC ORDER QUANTITY (EOQ) PADA RUMAH MAKAN IKAN BAKAR KINAMANG

The cost of raw material inventory is a sacrifice of economic resources, measured in units of money, which have occurred or are likely to occur for raw material inventory, consisting of purchase costs, storage costs, and inventory shortage. This study aims to determine (1) Total Inventory Cost (TIC) based on RM policy. Kinamang Fuel Fish and Economic Order Quantity (EOQ) method during 2017 (2) Frequency of ordering of efficient fish raw material during 2017 (3) Quantity of safety stock and when to reorder point of raw materials fish in RM. Ikan Bakar Kinamang during 2017. This research is a descriptive research with qualitative approach. And use case study method. The result of the research shows that the Cost of Fish Raw Material Supplies at Kinamang Fuel Fish Restaurant is still not economical because the purchase (order) is only based on the previous sales estimate, and does not take into account economically the expenses incurred for the purchase and storage of fish raw materials the. Precisely with the calculation of Economic Order Quantity (EOQ), the cost of raw materials inventory of fish is much less, and can determine properly and correctly about the safety stock (safety stock), and reorder (reorder point).Keywords: Inventory Cost, EOQ, Frequency, Safety Stock, ROP

ANALISIS PENGENDALIAN PERSEDIAAN BAHAN BAKU DENGAN MENGGUNAKAN METODE ECONOMIC ORDER QUANTITY (EOQ) DALAM UPAYA MEMINIMUMKAN BIAYA PRODUKSI PADA CV. DELAPAN-DELAPAN KUNINGAN

The research gap arises from the fluctuation of raw material inventory, the absence of safety stock and reorder point, and research gap from previous research that support EOQ (Economic Order Quantity) method and comparison with conventional method. The study aims to determine: (1) Whether the raw material inventory control method applied by CV. Delapan-Delapan is optimal, (2) Whether the method of EOQ (Economic Order Quantity) minimizes the production cost in CV. Delapan-Delapan, (3) how many optimal order of raw material at CV. Delapan-Delapan, (4) the amount of safety stock at CV. Delapan-Delapan, and (5) The time the CV. Delapan-Delapan do the Re Order Point if the company applies EOQ policy. The analytical method used in this research is descriptive analysis by comparing the total inventory (TIC) of EOQ calculation with total inventory cost (TIC) of conventional method. Data analysis techniques in this study uses Economic Order Quantity. The results shows that: (1) CV. Delapan-Delapan has not conducted optimal inventory control method to minimize the cost of economical inventory; (2) By applying EOQ method, the company can save total cost of raw materials of tapioca flour and wheat flour of Rp.17.553.366, - and Rp.11.109.966,- respectively; (3) Optimum raw material quantities for tapioca flour and wheat flour at CV. Delapan-Delapan are 1.441 kg and 1.177 kg, the amount of safety stock of tapioca flour and wheat flour is 1.026 kg and 703 kg, and (5) the company must do the re-order point when the quantity of raw material of raw tapioca flour and wheat flour in the warehouse has reached the amount of 1.199 kg and 811 kg respectively.Keywords: Total Cost Inventory, Re Order Point, Safety Stock, Economic Order Quantity

Estimation of Economic Order Quantity with Variable Parameters (Ukraine Case Study)

The optimal order quantity is the one of the main logistics tasks that takes place in modern theory and practice. Variety of consumers with its own demand and irregularity of consumption during the year exponentially increase number and times of calculation of economic order quantity. These complicate the EOQ decisions. At the same time, variation of the costs throw this process complicate this tacks exponentially. Using regression model for describe order cost and holding cost per unit simply calculations and consider its variability character.

A multi-item constrained EOQ calculation algorithm with exit condition: a comparative analysis

The present paper shows the improvements of an alternative approach for the calculation of the multi-item Economic Order Quantity (EOQ) in presence of space restrictions. The approach, already presented in literature, has been improved in order to make more efficient the calculation algorithm. This newly modified approach, with different variations, has been tested in simulated scenarios with the purpose of identifying the most significant regulation parameters, their optimal values and the average level of performances the approach is able to guarantee, in terms of costs of the solution and calculation times. The outcomes of this study confirm the general validity of the approach and, in particular, the improvement given by the specific exit condition of the algorithm introduced in this work.