Cost Of Raw Material Inventory Research Articles

ANALYSIS OF CONTROL FOR PRIMARY RAW MATERIAL INVENTORY USING EOQ, POQ, & LFL METHODS

Inventory is the goods that a company plans to own, acquired through purchase or production, with the aim of being marketed to consumers. Companies must be able to overcome challenges in controlling goods to achieve the desired target by minimizing the costs incurred and maximizing the profits obtained by the company. There are three methods that can be used to manage raw material inventory, namely EOQ, POQ, and LFL. This research aims to analyze, using the EOQ, POQ, and Lot For Lot methods, the possibility of supply chain resilience for a company operating in the short-lived perishable food industry. The results show that inventory cost savings for raw materials using the POQ method can achieve the largest savings of up to 6.78% compared to the company's current method. Savings in ordering costs with the EOQ method result in the highest savings, namely 88.68% compared to the company's current method. As for savings in storage costs, the method that was applied showed that the Lot For Lot (LFL) method is 0.6% more cost-effective compared to the company's current method, as well as the POQ and EOQ methods. The POQ method is identified as the one that minimizes raw material inventory costs, amounting to Rp 375,005,043.

Minimasi Biaya Persediaan Ikan Kakap Merah PT. MMU Metode Economic Order Quantity (EOQ)

PT. MMU is an industry engaged in processing marine fish. The aim of this research is to minimize the cost of snapper supplies so that the production process becomes more efficient. The analysis begins with data on demand for red snapper in 2023. The movement of recorded demand shows fairly stable fluctuations, although there are some significant declines in certain months, data on ordering costs and storage costs, including raw material prices, ordering frequency, costs forklift, and ice cube costs, have been obtained to account for the total cost of raw material inventory. Data on fish demand, ordering costs, storage costs, and inventory factors were analyzed, resulting in an optimal order quantity of 298.98 kg per order with an order frequency of 6 times a year. Cost analysis shows potential savings of Rp. 3,078,677.43, safety stock of 127 kg and re order point of 42 kg. This research provides insight into the efficiency of inventory management at PT. MMU and its important implications for stock control in the fishing industry

The Influence of Discipline, Loyalty and Leadership on Work Productivity in the Secretariat of the Regional People's Representative Council of Selayar Islands District

Raw materials have an important role in a company's production activities. Companies need to control raw material inventory because it affects the smooth production process. The purpose of this research is to find out whether the application of the EOQ method (Economic Order Quantity) can optimize raw material inventory costs at PT. Bumi Sarana Concrete (Kalla Block). The analytical method used is the EOQ method (Economic Order Quantity), total inventory costs, order frequency, safety stock and reorder point (Re Order Point). The results of this study indicate that using the EOQ method (Economic Order Quantity) can optimize raw material inventory costs. This is proven by the savings generated by the EOQ method. The results of the study show that there is a positive and significant influence of discipline, loyalty and leadership on work productivity. This is evidenced by the results of the test carried out by the t test by looking at the significant value of t count of 0.000 < from the significant level (0.000 < 0.05). Based on the results of the t test that has been carried out on the discipline variable (X1) on work productivity (Y) a value of 0.048 < 0.05 is obtained, besides that it is known that the significant value of X1 to Y is 0.250. Based on the results of the t-test that has been carried out on the loyalty variable (X2) on work productivity (Y) the value is 0.039.

Inventory Control Analysis Using Economic Order Quantity (EOQ) in the Pekalongan Batik Industry

One of the economic sectors that is able to provide a significant increase in Indonesia's economic growth is MSMEs, which operate in the creative industry sector. On the other hand, MSMEs are a business sector that is often faced with uncertainty. One of the batik MSMEs in Pekalongan was forced to face post-disruption effects such as a pandemic, which had an impact on decreasing demand and increasing supply. Therefore, strategies are needed to remain competitive in the market, one of which is inventory management. The EOQ model is used in this research to minimize raw material inventory costs by determining the economical order quantity (Q) in one of the Pekalongan batik industries. The results of this research provide a concrete reference for MSMEs to plan their supply of fabric raw materials, starting from determining order frequency, reorder points, and safety stock. The optimal order quantity for MSME raw materials is 10,189 meters, with an order frequency of 35 times in the planning horizon. The safety stock level that must be prepared is 3,988 meters, and the reorder point is 6,362 meters to meet demand during lead time. Through the proposed inventory planning, MSMEs can save inventory costs and allocate resources for other purposes.

Perencanaan Kebutuhan Baku dengan ARIMA dan EOQ

A production plan will run well if it is supported by an adequate supply of raw materials. Raw material procurement at PT Pura Barutama is done by asking suppliers to send raw materials to the warehouse every day with an uncertain amount. As a result, there is a buildup of raw materials in the warehouse. This accumulation of raw materials poses a risk of loss because the raw materials used are materials that are prone to damage, if this happens, the company will experience a loss in purchasing costs. The purpose of this study is to determine the amount of raw material orders using the ARIMA method for forecasting raw material requirements and Economic Quantity Order (EOQ) to determine the point of reordering raw materials. The results showed that the use of EOQ can save the total cost of raw material inventory up to Rp 53,549,222. It is concluded that the optimal amount of raw material ordering is 19591.8 Kg / order, ordering is done 10 times a year and the company's raw material reorder point is when the amount of raw material is 668.71 Kg, thus the company does not experience excess raw materials.

Analisa Perencanaan Dan Pengendalian Persediaan Bahan Baku Kasur Busa Dengan Metode Eoq (Economic Order Quantity) Pada Pt. Kurnia Persada Mitra Mandiri

This study aims to analyze the planning and control of raw material inventory at PT. Kurnia Persada Mitra Mandiri. The analysis was performed using the EOQ (Economic Order Quantity) method. This analysis technique consists of reviewing the reorder point, safety stock, and total annual inventory cost. The results show that by using the EOQ method, the company can find out how many times raw materials are purchased and in the quantity how many times raw material purchases are made, know how much minimum stock is needed to be on guard, determine the time to reorder raw materials, and know the cost. The results showed that by using the EOQ method the company could generate more optimal profits compared to conventional methods. Furthermore, the research results also show that with the application of EOQ, companies can make savings on raw material inventory costs, namely in 2018 amounting to IDR 19.092.034 and in 2019 of IDR 21.053.480. In the end, this research is expected to provide insights for companies to use the EOQ method sustainably so that the process of planning and controlling raw materials is better.

The Effect Of Raw Material Inventory And Machine Maintenance On Production Results (Case study on An-Nadiyah Embroidery Convection Tasikmalaya City)

This study aims to determine the Effect of Raw Material Inventory and Machine Maintenance on Production Results Case study on An-Nadiyah Embroidery Convection Tasikmalaya City). The method used in this study is a casual associative method (cause and effect) with a quantitative approach, as for the sample, namely data on the cost of Raw Material Inventory, Machine Maintenance costs, and production data for the last 4 years or the last 48 months, namely in the period January 2019-December 2022 on An-Nadiyah Embroidery Convection. The analysis tool used in this study was multiple linear regression using SPSS Version 25. The results showed that simultaneously the discipline of Raw Material Inventory and Machine Maintenance had a significant effect on production results. Partially, the Standard Bahn Inventory has a significant effect on production output. Partial Machine Maintenance has a significant effect on Production Results.

Penentuan Order Quantity Bahan Baku Pupuk Bersubsidi Jenis Npk Menggunakan Metode EOQ Di Pt. XYZ

Fertilizer has an important role in supporting the productivity of food crops. The Indonesian government provides subsidized fertilizers in an effort to support the fulfillment of national food needs. The number of subsidized fertilizer needs targeted by the government increases every year. Therefore, appropriate inventory planning is needed to realize the subsidized fertilizer production target that has been set by the government. The type of NPK fertilizer is one of the concerns because this type of subsidized fertilizer has a high demand rate, but its production figure is still far from the realization target. So that in this study the author aims to conduct a comparative analysis of inventory with the policies set by the company, namely Minimum-maximum with the Economic Order Quantity (EOQ) method. The EOQ method considers several costs, such as holding costs, raw material prices, and ordering costs. There are several outputs produced by the authors in this study, such as the frequency of orders, safety stock, reorder points, and total inventory costs. With this policy, the total cost of raw material inventory that must be spent for the manufacture of NPK fertilizer is Rp 4,257,606,170. And by using the EOQ method, it can save the company's total inventory cost of Rp. 121,368,688 or 2.77%.

Analysis of Supply Quantity Control of Argon Gas Raw Material At PT XY

The background in this research is that there is no method used to manage and control the quantity of raw material supplies at PT XY. This situation causes problems in ordering raw materials so that ordering costs and costs for storage will not be optimal. The purpose of this study was to determine the effect of applying the EOQ method to the total cost of raw material inventory at PT. XY. Raw material inventory costs can be minimized by applying the EOQ (Economic Order Quantity) method. This method can show the economic order quantity, optimal purchase frequency, time to reorder/ROP (Re-Order Point), and the amount of safety stock. Data collection was carried out using documentation techniques related to observation inventory documents and interviews with several informants, for data analysis using EOQ by calculating total inventory cost, ROP, reorder frequency and safety stock. The results of calculations and data analysis using the EOQ method show that the total cost of inventory is lower than the company's actual method.

The Influence Of Machinery Maintenance And Raw Material Supply On The Smoothness Of The Production Process (Survey at PT. Pacific Eastern Coconut Utma Pangandaran Factory)

This study aims to determine the effect of Machine Maintenance and Raw Material Inventory on the smoothness of the Production Process (Survey at PT. Pacific Eastern Coconut Utama Pangandaran Factory). The method used in this study is a descriptive research method with a quantitative approach. The samples used are machine maintenance cost data, raw material inventory costs, and production cost data for the last 3 years, namely in the 2019-2021 period at PT. Pacific Eastern Coconut Utama. The analytical tool used in this study was multiple linear regression using SPSS Version 25. The results showed that simultaneous machine maintenance and raw material inventory had a significant effect on the smooth running of the production process with an Fcount of 32.134 and a probability significance value of 0.000<0.05. Partially, machine maintenance has no significant effect on the smooth running of the production process because the significance value of 0.084 is greater than 0.05. Partially raw material inventory has a significant effect on the smooth running of the production process with a significance value of 0.000 <0.05.

Analisis Metode Economic Order Quanity Guna Melakukan Efisiensi Persediaan Bahan Baku dan Efisiensi Biaya di Industri Bakery

One of the companies in East Bekasi is a company engaged in the bread industry, with the product being sandwiches. The purpose of this research is to perform raw material efficiency and cost savings of raw material inventory. In this study, identified the bread production process for 1 period (3 months). It is known that this company ordered raw materials, namely 2100 kg of flour and 480 kg of granulated sugar. However, in reality, only 1537 kg of wheat flour was used and 379 kg of granulated sugar. There is a difference between ordering raw materials and using raw materials so that the costs incurred in carrying out raw material inventory exceed the limits of the costs that have been determined by the company. The method used is the Economic Order Quantity (EOQ) method. The goal is to control the number of raw material orders made by this company and indirectly to save raw material inventory costs. The findings are comparing calculations by companies using EOQ, the efficiency of raw materials after using the EOQ method for wheat flour is 542 kg and granulated sugar is 93 kg and savings in raw material inventory costs for wheat flour is Rp. 156,437 and granulated sugar is Rp. 212,092.

OPTIMASI BIAYA PRODUKSI PADA PT. XYZ DENGAN PENGENDALIAN PERSEDIAAN BAHAN BAKU SODIUM TRYPOLYPHATE

This study aims to compare the Economic Order Quantity and Just In Time inventory methods to determine which inventory management strategy is best for PT XYZ. Observation, documentation, and interviews are the data collection methods used in this study. EOQ Formula, Safety Stock, Reorder Point, and Just In Time Formula are the data analysis techniques used in this study. The findings show that the component cost of raw material inventory using the EOQ method, storage costs IDR 2,312/order, and total inventory costs IDR 16,775,553. The JIT method reveals that the total cost of inventory is IDR 1,798,711. An inventory system with JIT that only has an inventory cost of 1,798,711 can reduce costs by about 43% more effectively, according to JIT and EOQ studies. The findings show that the component cost of raw material inventory using the EOQ method, storage costs IDR 2,312/order, and total inventory costs IDR 16,775,553. The JIT method reveals that the total cost of inventory is IDR 1,798,711. An inventory system with JIT that only has an inventory cost of 1,798,711 can reduce costs by about 43% more effectively, according to JIT and EOQ studies.

IMPLEMENTATION OF THE ECONOMIC ORDER QUANTITY (EOQ) METHOD ON CV ANUGRAH SAKTI

<span>The purpose of thi study is to determine the cost of raw material inventory which is more<span> efficient by using the Economic Order Quantity (EOQ) method at CV Anugrah Sakti. Data<span> collection methods in this study are interviews,observation, and documentation. This research<span> uses comparative data analysis test to assess whether or not the efficiency of raw material<span> inventory costs at CV Anugrah Sakti is significant. The results of this study indicate that the<span> difference in inventory costs between the company's calculations with the Economic Order<span> Quantity (EOQ) method for chicken feather raw materials is more efficient IDR. 189,043,691<span> and bread raw materials with EOQ are more efficient IDR. IDR1,457,285,871. With a<span> frequency of ordering for chicken feather raw materials as much as 7 times, with orders made<span> once every 41 days. While the raw material for bread waste is 3 times a year, once every 106<span> days.<br /><br class="Apple-interchange-newline" /></span></span></span></span></span></span></span></span></span></span></span>

METODE MARKOV CHAIN DALAM PENGENDALIAN PERSEDIAAN UNTUK PERENCANAAN BIAYA PERSEDIAAN BAHAN BAKU PADA TOKO AIRIN BAKERY & CAKE SHOP

Airin Bakery & Cake Shop produces various kinds of cakes and bread. This shop is often faced with problems that occur, namely the supply of raw materials that are insufficient or excess so that the production process does not go well. This study aims to determine the ordering capacity and the right time to order raw materials to minimize the total cost of raw material inventory using the silver meal method. The total inventory cost is Rp. 14,637,947.4 less than the cost set by the company. Inventory control, which is a stochastic process, can also be carried out without regard to safety stock, lead time, and reorder points. The stochastic process of total inventory can be described by a finite number of states. The probability of transitions between these states is described by a markov chain. The markov chain method can predict future raw material inventory costs. After making several states on the amount of raw material inventory, a prediction of the future raw material inventory costs of Rp.31.747.932,98 is obtained

ANALISIS PENGENDALIAN PERSEDIAAN BAHAN BAKU TANDAN BUAH SEGAR (TBS) DENGAN METODE SIMULASI MONTE CARLO

The development of palm oil production is quite rapid in Indonesia. The method used to estimate inventory costs in this study is the Monte Carlo Simulation method. Monte Carlo simulation is used in structuring optimal raw material policies. The purpose of this research is to predict and optimize raw material inventory costs for the future. The results of the total cost of raw material inventory by Monte Carlo Simulation Calculations are smaller than the total cost of inventory by company calculations. The total cost of preparation using Monte Carlo Simulation Calculations is Rp. 16,873,743,694. Meanwhile, the total calculation preparation costs obtained by the company amounted to Rp. 17,207,020,022, and savings of Rp. 333,276,328

Analysis of Coffee Raw Material Inventory Control Using the EOQ (Economic Order Quantity) Method in SME Sido Luhur

SME Sido Luhur is a producer that processes raw coffee beans who have problems ordering coffee beans every month which is considered to result in higher inventory costs. The sample in this study were SME Sido Luhur owner who were determined based on judgment sampling. The research was conducted at SME Sido Luhur starting September 2022. This research used primary data obtained through interviews and secondary data obtained from the cost and quantity of raw materials in 2018. Data for 2018 can represent 2019, 2020, 2021, 2022, and so on, because starting in 2017 SME Sido Luhur have entmered the maturity phase so the 2018 data can represent the following year based on the relatively stable use of raw materials and having entered the business maturity phase. The analysis method uses EOQ to find the optimum inventory quantity with the lowest possible cost and the right reorder time. A comparison of robusta coffee bean inventory control methods shows that the Economic Order Quantity method is more effective in controlling raw material inventory in SME Sido Luhur as evidenced by the cost of raw material inventory being economical and efficient. After using the EOQ method, orders are made every 2 months to save costs for ordering raw materials compared to before using the EOQ method, which is done every month.

Raw Material Inventory Analysis Using the Economic Order Quantity (EOQ) Method To Maximize Profits at UD. Panca Putra

UD. Panca Putra carries out production by considering the costs that will come out in order to obtain maximum profit. One of the costs considered is the cost of raw material inventory. The purpose of this study is to determine the cost of raw material inventory UD. Panca Putra and to maximize company profits by using the Economic Order Quantity (EOQ) method and to find out how much the company's profit has increased by using the Economic Order Quantity (EOQ) method at UD. Panca Putra. The analytical method used is descriptive. The results of this study indicate that by using the Economic Order Quantity (EOQ) method, company profits have increased by 1.3%.

IMPLEMENTASI METODE EOQ (ECONOMICAL ORDER QUANTITY) PADA SYSTEM INVENTORY DI PERUSAHAAN X

In the industrial world, determining the amount of raw material inventory is an important issue, because raw material inventory has a direct effect on the course of production. Errors in determining inventory can paralyze all production activities, because raw materials are the initial materials or media in the production process. If the raw material inventory is too large compared to the company's needs, it will add to the burden on maintenance and storage costs in the warehouse, as well as the possibility of depreciation and a decrease in the quality of raw materials, so this will greatly affect the cost of raw material inventory. And vice versa, if the inventory is too small it will result in a bottleneck in production. Based on the description above, the researcher conducted research at a workshop company in X city. The object of the study was to calculate the cost of procuring AWS welding wire raw materials at the company using the EOQ method. The results showed that the raw material requirement for AWS welding wire in period 9 could be known economically, namely = 77.9817 kg for AWS welding wire. Purchase frequency for AWS welding wire 11 times. The total cost of TIC supplies in period 9 for AWS welding wire = IDR 7,800.00/Kg. To determine the number of orders and the right time to order is when inventory is at point 34.30099 Kg with a reorder amount of 77.9817 kg for AWS welding wire.

MANAJEMEN PERSEDIAAN BAHAN BAKU KOPI BUBUK PADA UKM SIDOLE 986 DI KOTA PALU

SMEs Sidole 986 Coffe Powder UKM Sidole 986 is one of the businesses engaged in the agro-industry 
 that utilizes Robusta coffe bean as the main raw material. This study aims to determine how much economic 
 raw material purchases (EOQ) for raw material supplies in the SMEs Sidole 986, to find out how much safety 
 stock is in the, SMEs Sidole 986 to find out when is the right time for the SMEs Sidole 986 to do so. reorder 
 (ROP) for raw material inventory, and to find out the total cost of raw material inventory (TIC) in the SMEs
 Sidole 986. The results of this study indicate that the management of raw material inventory in the SMEs Sidole 
 986 using the (Economic Order Quantity) method in July-December 2021 an average of 42,02 kg. Safety stock 
 of raw materials which is always available at SME Sidole 986 is 22,84 kg. Reorder Points that must be made 
 by the SMEs Sidole 986 in July-December 2021 an average of 127,12 kg. The total cost of the raw material 
 inventory coffe powder carried out in the SMEs Sidole 986 is an average of Rp. 75.824,74.

MANAJEMEN PERSEDIAAN BAHAN BAKU BAWANG PUTIH GORENG PADA UKM SOFIE LOCALFOOD DI KOTA PALU

Garlic Sofie Localfood is one of the businesses engaged in agro-industry that utilizes garlic as the main raw material. Sofie Localfood's fried garlic products still have difficulty in regulating the production process, due to delays in ordering raw materials, so SMEs buy raw materials elsewhere and require more costs and sometimes the raw materials are not as expected. Raw materials are one of the most important production factors because they support the smooth running of the production process. This study aims to find out how much economic raw material purchases (EOQ) for the supply of raw materials to SMEs Sofie Localfood, to find out how much safety stock (Safety Stock) to SMEs Sofie Localfood, to find out when is the right time for SMEs Sofie Localfood to do reordering (ROP) of raw material inventory, and to find out the total inventory cost (TIC) of raw materials at UKM Sofie Localfood, This research was conducted at UKM Sofie Localfood on Jalan Zebra IV, Lorong 1 No. 5 Palu City. The selection of this location was done purposively, with the consideration that Sofie Localfood is one of the businesses that produces garlic as the main raw material for making tempeh in Palu City. This research was conducted from April to June 2021. Respondents are owners and employees of UKM Sofie Localfood who were selected as sources of information in the study, the total number of respondents is 3 people. Based on data to be obtained from Sofie Localfood's business regarding raw material inventory management issues tempe, the data analysis used is Economic Order Quantity (EOQ), Safety Stock (Safety Stock), reorder (ROP) and total inventory cost (TIC). The results of this study indicate that the management of raw material inventory at SMEs Sofie localfood using the (Economic Order Quantity) method in JanuaryDecember 2020 an average of 31.17 kg/month. Safety stock (Safety Stock) of raw materials that is always available at UKM Sofie Localfood is 14.92 kg/month. The reorder point (reorder point) that SMEs Sofie Localfood must make in April-June 2021 is an average of 77.26 kg/month. The total cost of raw material inventory for garlic in the UKM Sofie Localfood is an average of Rp.58.157.86/month.