Economic Order Quantity Method Research Articles

Aplikasi Metode EOQ Dalam Efisiensi Total Biaya Persediaan dan Optimasi Pengendalian Persediaan Bahan Baku Thinner di PT. XYZ

Raw material procurement policies play an important role in the production activities of a company. In order to maintain customer trust, PT. XYZ is very concerned about the quality and timeliness of the products it produces. This research was conducted to analyze raw material procurement policies and apply the Economic Order Quantity (EOQ) method which is considered effective as a measure to optimize inventory control efforts and minimize total inventory costs. This study shows that the total inventory cost (TIC) using EOQ has a more economical amount of Rp. 150,080, compared to the TIC resulting from company policy, namely Rp. 967,671. The EOQ model also takes into account the economical purchasing process which is carried out 5 times a year with a purchase quantity of 239 units per order, reorders are made when the remaining stock is 44 units and safety stock is 32 units. In order to maximize the inventory function, the maximum stock or limit on the availability of stock in the warehouse is also taken into account, which is 277 units.

Penerapan Metode Economic Order Quantity (EOQ) Pada UD MBO Bakery di Kabupaten Jember

This research is a type of quantitative descriptive research with the aim of analyzing the optimal amount of wheat flour raw material inventory, safety stock, reoder point, total cost and comparing the company's conventional method of wheat flour raw material inventory control system with the EOQ method. The analytical tools used are the Economic Order Quantity (EOQ) method, order frequency, ROP (reorder point), SS (safety stock), TIC (Total Inventory Cost), and POM-QM software. Based on the results of the analysis, it is known that in 2022 the purchase of UD MBO Bakery raw materials was 139,575 kg with an order quantity of 2,908 kg or 116 bags/order and an order frequency of 50 times/year with an average of 4 times/month and a total inventory cost of IDR 3,919,700.00. Calculations using the EOQ method obtained the optimal amount of raw material purchases in 2022 of 8,063 kg or 322 bags per order with a frequency of purchases of 17 times/year or orders every 18 days and the total cost of inventory using the EOQ method is IDR 2,419,040.81. This shows that calculations using the EOQ method can save total inventory costs of IDR 1,500,659.19.

Metode Economic Order Quantity dalam Sistem Manajemen Stok Bandar Barang Bekas (SiBandar)

Junk goods are no longer piles of worthless goods for businessmen who are keen to see the economic value by taking this opportunity by becoming a pelapak company to buy and sell junk goods purchased from collectors to be sold to buyers. The problems found with Pelapak include the manual recording of sales administration which has the potential to cause recording errors. Pelapak does not know for sure the stock of junk they own and those owned by collectors because the locations of the collectors are far apart. Orders of junk goods between pelapak and collectors are still via telephone so pelapak does not know which collectors are in the process of sending goods. Problems also occur on the part of collectors including unprofessional sales transactions. Based on these problems, a used goods stock management system is needed using the Economic Order Quantity (EOQ) method. The purpose of this study is to build a used goods stock management information system that can monitor the availability of used goods owned by collectors and pelapak. System development uses the prototype method and designs with concepts. The results of the research are that the system created can help find out the stock and the amount in each collector, recap sales reports, provide accurate information, facilitate business transactions and fulfill sales targets to buyers.

Integration of Economic Order Quantity (EOQ) Method and Min-Max Stock Method in Controlling Raw Material Inventory in The Furniture Industry

Indonesia is a country with a very rapidly developing economy in the manufacturing sector that produces furniture products. The existence of fierce competition between companies and the limited supply of raw materials makes the need for raw materials in the production process uncontrollable so that the desired goals of the company cannot be achieved. One of the factors that greatly influences is regarding the problem of raw material inventory levels. The issue of raw materials is very important for an enterprise because it has a great influence on the profit obtained.Economic Order Quantity (EOQ) and Min-Max Stock methods are carried out to control raw material inventories resulting in savings with optimal purchases by not experiencing inventory shortages.This research is expected so that waste and inventory that are too small can be known at intervals of time to be more effective and efficient in the production process.From the results of analysis and data processing, it can be seen that the number of orders for sonokeling wood raw materials needs is 17.670 m3 and amara wood raw materials are 4.325 m3 with an order frequency of 1 time and an ordering cycle distance of 33 days. So the delay in raw material inventory is influenced by several factors, namely the purchase price of wood raw materials, estimates in using raw materials, purchasing policies from companies and government policies related to regulations with the Multistakeholder Timber Verification and Legality System (SLVK) for inventory control are still lacking.

Economic Order Quantity (EOQ) Application to Raw Material Inventory Control for SME's

The application of the Economic Order Quantity (EOQ) method in managing raw material supplies for Pempek Isti, a micro, small, and medium enterprise (MSME) specializing in Palembang's culinary specialty, Pempek. The study reveals that the current raw material supply management is inefficient, leading to frequent shortages or excess orders, resulting in additional costs and inefficiencies. To tackle this issue, the study proposes the implementation of the EOQ analysis to minimize inventory costs and maximize profits. The research focuses on determining the optimal order quantities for three key raw materials: ikan tenggiri, sago flour, and eggs. After conducting the EOQ analysis, the study identifies the optimal order quantities as 37kg for mackerel fish, 44kg for sago flour, and 7kg for eggs. Furthermore, the study calculates the reorder points for each raw material based on the EOQ method, resulting in 8.36kg for mackerel fish, 8.19kg for sago flour, and 3.23kg for eggs. By implementing the EOQ method, Pempek Isti MSME can accurately estimate the required quantities of raw materials for Pempek production throughout the year. The calculations consider safety stock and lead time, enabling the determination of reorder points and maximum order quantities for each raw material. This information serves as a valuable reference for effectively managing the MSME's raw material supply chain. Overall, the application of the EOQ method is crucial in ensuring an efficient supply chain for Pempek Isti MSME. By implementing proper planning, control, and supervision of raw materials, the company can minimize costs, prevent stockouts, and avoid excessive inventory. This study provides valuable insights into optimizing inventory management, particularly in the context of MSMEs operating in the culinary industry.

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.

Analysis of Raw Material Inventory Control using the ABC Analysis Method and EOQ Method in the Fajar Onion Crackers Business

Inventory control is one aspect that affect the company's smooth operation. In this study, the Activity Based Costing (ABC) analysis method and the Economic Order Quantity (EOQ) method are applied to control raw material inventory. The Bawang Fajar cracker business is one of the SMEs whose raw material inventory control has yet to use the ABC analysis method and the EOQ method. This research is applied research. Based on the results of this study, it was found that the grouping of raw material inventories according to ABC analysis was divided into three groups, namely group A; wheat flour and cooking oil, group B; eggs, and group C; onion and garlic. The TIC value based on the EOQ method is Rp. 1,749,102.00, while the TIC value based on the method used by the company is Rp. 3,582,200.00. So that the EOQ method is more effective than the method used by the company in the Fajar Bawang Crackers Business.

ANALISIS PENGENDALIAN PERSEDIAAN TEPUNG TERIGU DI UMKM CITRA MENGGUNAKAN METODE ECONOMIC ORDER QUANTITY (EOQ) DAN JUST IN TIME (JIT)

As a Micro, Small and Medium Enterprise that is engaged in the food business, namely crackers, the raw material used in Citra UMKM is wheat flour which is the main raw material in making crackers. raw material. In this study, the authors review controls to determine the size of the safety stock. the availability of raw materials for Citra UMKM by comparing the two availability systems. This study aims to determine the amount of safety stock and when to reorder and compare the availability control system that has been carried out by Citra UMKM using two availability control systems, namely the Economic Order Quantity (EOQ) method and the Just In Time (JIT) method. After further analysis showed that in controlling the inventory of raw materials, the costs incurred by Citra UMKM were greater than those using the Economic Order Quantity (EOQ) method and the Just In Time (JIT) approach. Meanwhile, if the Economic Order Quantity (EOQ) approach is compared with Just In Time (JIT) with each of the total inventory costs between companies, EOQ and JIT are IDR 10,000,000, IDR 1,109,995 and IDR 934,924, using the JIT approach is superior because the number of higher orders and lower total inventory costs.

MATERIAL SUPPLY ESTIMATION USING THE ECONOMIC ORDER QUANTITY (EOQ) METHOD IN THE PUSKOPCUINA BUILDING PHASE I PONTIANAK CONSTRUCTION PROJECT

Seeing the rapid development of the construction world, as part of the Indonesian economy, we need to support the growth of various facilities and infrastructure. In its growth, it must also improve its quality in all respects. In this case, material management plays an essential role in the construction process. The method chosen for this problem is the Economic Order Quantity (EOQ) method. The most economical amount of inventory can be determined by calculating the Economic Order Quantity (EOQ) method. This economical amount of stock can invest embedded in inventory materials, not excessive, so that it does not experience waste.

PENGENDALIAN PERSEDIAAN PADA PERUSAHAAN AIR MINUM PT. BANDANGAN TIRTA AGUNG, PT. PANEN EMBUN KEMAKMURAN, DAN PT. MANDRAGUNA ADITAMA DENGAN MENGGUNAKAN METODE ECONOMIC ORDER QUANTITY (EOQ)

This study aims to determine the optimal frequency of purchasing raw materials for Cup 220 ml and Straw using the Economic Order Quantity (EOQ) method at PT. Bandangantirta Agung, PT. Harvest Dew Prosperity and PT. Mandrapurna Aditama. The type of data used is quantitative data, with qualitative research methods. The results obtained for the frequency of purchases from the three companies, PT Panen Embun Kemakmuran which get optimal results compared to other companies with a frequency of 3 times for Cup 220 and 8 times for straw based on the calculation of the EOQ method. Meanwhile, based on the Company's policy 9 times and 8 times the frequency of purchases made.

ANALISIS PROSES PENGENDALIAN PERSEDIAAN DEGAN METODE ECONOMIC ORDER QUANTITY DI MDLY GOLD


 MDLY Gold is a small and medium business partner (MSME) engaged in the fashion sector that has been established since 2017. As of 2022, MDLY Gold successfully has 9 production and retail locations throughout the major islands of Indonesia with the main outlet located in Tanah Abang, Jakarta. Center. However, ordering MDLY Gold raw materials requires a lead time of 2 weeks. So this will affect the long production time so that it causes losses for MDLY Gold. Therefore, to maximize raw material inventory and reduce losses, we can analyze using the Economic Order Quantity method. Through solving the inventory control problem, the total Economic Order Quantity (EOQ) of raw material inventory for MDLY Gold production is 27,413.8 Yards during January to June. This EOQ aims to manage inventory that can optimize the total cost consisting of ordering costs and holding costs. Besides this, MDLY Gold must reorder when the stock reaches a reorder point of 17,668.4 Yards with additional supplies needed if there is no shortage of raw materials or safety stock of 10,112.24 Yards. Determination of ROP and SS is useful for MDLY Gold to be able to find out when is the best time to place an order besides there is an order lead time, so that raw materials will arrive on time and the production process will run smoothly without any problems in inventory control.

Implementation of the Just In Time Method to Efficient Production Costs (Literature Review Study)

In production activities, the problem of inventory is one thing that must be considered in order to avoid waste in the production process. This study shows the control of raw material inventory in a production to get the optimal level of inventory. The just in time (JIT) method reduces the amount of inventory so that it can reduce costs as efficiently as possible. Inventory control with the just in time (JIT) method is the development of the economic order quantity (EOQ) method by reducing shipping lots. Based on this research, it is known that with the same data, using just in time (JIT) the costs incurred are smaller than the costs incurred previously. Costs previously incurred were Rp. 14,019,680.00 using economic order quantity (EOQ) the costs incurred were Rp. 8,497,593,00 while using just in time (JIT) the costs incurred were Rp. 3,800,239, 00 From these results it can be seen that with the just in time (JIT) method the production costs incurred are more efficient. The solution using the just in time (JIT) method is done with the help of MATLAB software.

Implementasi Sirkulasi Penyimpanan pada Gudang Obat Distribusi Farmasi PT. Bharadah Sakti

Storage is an activity of storing and maintaining by placing drugs received in a place that is considered safe from theft and physical disturbances that can damage the quality of drugs. Pharmaceutical Wholesalers are companies in the form of legal entities that have permits for the procurement, storage, distribution of drugs or materials in large quantities in accordance with statutory provisions (Permenkes, 2011). Using primary data sources and secondary data. This study aims to determine the implementation of storage circulation in drug warehouses in pharmaceutical distribution companies at PT. Bharadah Sakti Semarang. The data collection method was carried out through interviews, observation, and documentation at the PT. Bharadah Sakti Semarang. The observation results obtained indicate that the management of drug supplies in warehouses uses the Economic Order Quantity (EOQ) method.

Analysis of EOQ (Economic Order Quantity) as a Basis for Controlling Multi Item Raw Materials at Laatunsa Bakery Tasikmalaya

The goals of this study were to analyze the most cost-effective requirements for the primary raw materials based on the requirements of Laatunsa Bakery for the 2020–2021 period, due to the excessive frequency of raw material acquisitions, the inventory procedure results in a high cost expenditure; to examine the total cost of the primary raw material inventory that must be paid by Laatunsa Bakery for the 2020–2021 period, to analyse the frequency of purchases that are necessary; to analyze the quantity of safety stock (safety stock); to analyze the timing of reordering (reorder point), and to analyze the Laatunsa Bakery's primary raw material inventory control utilizing the EOQ method. Data gathering was place between November 2021 and February 2022. All information pertaining to the acquisition of the primary raw material inventory required for production, as well as the associated expenses of raw material inventory was utilized. This study adopted Economic Order Quantity as the analytical technique approach.
 The study's findings utilizing the EOQ approach revealed that the inventory of raw wheat cost Rp. 585,581.45, a savings of Rp. 2,613,934.94. Additionally, saving Rp 2,559,472.21 on sugar raw materials costing Rp 585,582.23 is possible. Additionally, the cost of the raw ingredient for butter is Rp. 585,582.23, saving Rp. 2,559,472.21. Additionally, the cost of the raw material for eggs is Rp 952,399.69, saving Rp 3,355,584.19. Additionally, the developer can save IDR 1,132,400.99 on the IDR 590,582.81 in raw materials.When compared to conventional method, the EOQ method can reduce inventory costs and optimize the need for raw materials. The EOQ approach is utilized using Microsoft Excel for the calculation.

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>

Analisis Perencanaan Dan Pengelolaan Persediaan Dengan Metode EOQ Untuk Meningkatkan Efisiensi Biaya Persediaan Pada PT WIJAYA RISKISMAS TUNGGAL

Good inventory planning and management usually lies in understanding the company's stock of inventory, whether located in warehouses or stores, and how the inventory processes go into and out of the company.
 The analytical technique used in this research is descriptive analysis technique. Primary data were collected and obtained through observational interviews, documentation studies and literature studies, while secondary data were obtained from literature related to the research topic. The financial statements used as the object of research.
 The results showed that PT Wijaya Riskismas Tunggal carried out the inventory planning process without considering the amount of inventory in the company. The total beginning inventory in the company throughout 2020 was 68,265 with an average of 5,689 while the total use made by the company was only 41,272 with an average of 3,439 which caused the company's total ending inventory to be 26,993 with an average of 2,249, PT. Wijaya Riskismas Tunggal performs the Inventory Management process regardless of the number of requests required by each customer. The number of inventory purchases made by the company is 42,700 with an average of 3,558, while the number of uses required by consumers is only 41,272 with an average of 3,439. Compare the calculation made by PT Wijaya Riskismas Tunggal with the traditional calculation of 41,272 with the total cost of inventory. Rp. 6,130,000 while the calculation using the Economic Order Quantity (EOQ) method is 41,727 with a total inventory cost of Rp 5,673,814.

Analysis of Raw Materials Inventory Control Using Economic Order Quantity (EOQ) (Case Study of Synthetic Leather Raw Materials at Borselly)

The purpose of this study was to find out how the implementation of synthetic leather raw material inventory control has been carried out by Borselly, whether applying the EOQ method in controlling raw material inventory at Borselly is more optimal than without using the EOQ method. The method used in this research is a descriptive method with a quantitative approach with technical data collection through interviews, observation, literature study, and documentation. The data analysis tool used in this study is by using the Economic Order Quantity (EOQ) such as purchase frequency, safety stock, reorder point (ROP), and total inventory cost (TIC). Based on the research results, it is known that applying the EOQ method calculation has an effect on the company being better, the company can also make inventory costs more efficient and optimize inventory compared to policies using conventional methods

Perancangan Sistem Informasi Pengendalian Persediaan Sparepart dengan Metode Economic Order Quantity di Bengkel Mobil Sumber Jaya Probolinggo

: This research discusses the design of a spare part inventory control information system in a car workshop using the Economic Order Quantity (EOQ) method. This method functions as an optimization of inventory control by minimizing inventory and ordering costs, as well as avoiding excess or shortage of inventory. The author designed the information system using PHP programming language and MySQL as the database to facilitate the website development process. Testing was carried out by testing the functionality and performance of the system using real data. The results of this journal prove that the design of the information system can help car workshops to control spare part inventory more efficiently. By using the EOQ method, workshops can optimize the use of inventory, reduce inventory and ordering costs, and avoid excess or shortage of inventory. The designed information system also optimizes the performance of the workshop in improving its efficiency and productivity

Perbandingan Efektivitas Metode EOQ dan JIT dalam Pengelolaan Persediaan pada PT XYZ

PT. XYZ is a manufacturing company engaged in bodywork sector. Every company surely expects high profit . O ne of the ways to achieve th e goal is by minimizing the expenses. Economic Order Quantity (EOQ) and Just In Time (JIT) methods are commonly used methods to save inventory costs. This study aims to compare which method is more effective and efficient in reducing inventory costs at the company. The results of the study show that the JIT method can reduce inventory costs by 91.14% for p late with 2mm 4x8 s tandard and 93.62% for p late with 3mm 4x8 s tandard, while the EOQ method can reduce inventory costs by 33.45% for both types of the raw materials. Based on the results above, it can be concluded that JIT method is more effective than EOQ method in reducing inventory costs in the company.

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.