Total Inventory Cost Research Articles

Commercial model to optimize supply chains in local markets

Today, inventory management is a highly studied and interesting topic to optimize the cost of managing them. Traditional inventory models generally tend to block inventory optimization, but the more the years have passed, the concept of "supply chain" has been implemented, where the satisfaction of the needs of the final customer is achieved through material flows, information and financial, which are established from the original suppliers to the last consumer, requiring a certain level of cooperation and integration between the participants in the chain. That is why through the present the design of a sustainable model to optimize supply chains in local businesses in Jerez, Zacatecas is investigated, proposed, and exposed.In this paper, the optimization of inventories is studied, creating an effective model that combines the traditional with the current and that reflects the advantages of this approach in the total inventory costs in the chain, that is, the optimization.

Inventory Control for Eyeglass Supply Using the P Model Based on Sales Products Sales Forecasting (Case Study: Merry Optic Bandung)

Inventory is a resource owned by the company to be used in the production process to meet consumer demand. Companies must be able to control inventory appropriately in order to avoid excess or shortage of inventory by using inventory control. Inventory control is a necessary part of a company that requires an appropriate inventory policy to meet uncertain needs. Based on this background, this study discusses the single item inventory model in the form of photochromic glasses at Merry Optik to find the optimal total inventory cost. In meeting the uncertain needs of the company, the Additive Decomposition forecasting method is used in order to find out the forecast sales data pattern in the future. Uncertain demand causes the inventory system to be probabilistic, so it is necessary to carry out probabilistic inventory control. The P model of the case of back orders was chosen because the range of ordering periods is fixed and the company can buy inventory when it runs out before the time the inventory order is made so that buyers can wait until the inventory arrives. By using Model P for the case of back orders, the company can obtain the period between orders, the total cost of inventory, and the optimal level of service. Based on the results of this study, a pattern of sales forecast data is obtained which repeats every 12 months. Companies must order glasses within a period of 32 days between orders so that it is optimal and able to provide a reduction in the total inventory cost of IDR 21,828,771 with a service level of 95%. Companies can save on inventory costs if they use shorter periods between orders. The total cost of inventory can be more optimal if the company reduces the cost of storing inventory in the warehouse.

Analisis Pengendalian Persediaan Bahan Baku Dalam Perencanaan Proses Produksi Pada Pabrik Tahu Ambon

This study aims to determine the control of soybean raw material inventory applied at the Ambon Tofu Factory and to determine the number of economic soybean raw material inventory orders at the Ambon Tofu Factory. The type of research used in this research is comparative descriptive method research. The data processed is in the form of inventory reports on the purchase and use of soybean raw materials at the Ambon Tofu Factory in 2017. The data analysis techniques used in this study are EOQ, Safety stock, and ROP. Based on the results of research using the EOQ method, the economic ordering amount of soybean raw materials are obtained at 10,480 kg, with a frequency of ordering 17 times, safety stock of 7,221 kg, ROP can be done when the soybean raw material in the warehouse is 1,497 kg, and the total inventory cost is Rp. 335,352. The conclusion of this study shows that the application of the Economic Order Quantity (EOQ) method shows a more economical number of orders to minimize the costs incurred at the tofu factory and can maximize the profit earned.
 Keywords: raw material control, economic order quantity (EOQ)

Perbandingan Pengadaan Persediaan Bahan Baku Dengan Menggunakan Metode EOQ dan Min Max pada PT XYZ

PT XYZ is an industrial company that produces vehicle spare parts. So far, raw material inventory planning has been carried out based on estimates of past needs, methods like this will result in uncertainty raw material needs which will cause total inventory costs to increase, stockouts, and overstocks. This research aims to evaluate the company's raw material inventory procurement, to obtain optimal raw material inventory procurement. The research methods used are normality tests, forecasting, and comparison of the EOQ & Min method where the best method is proposed to be applied in the company. The data collection techniques used were observation, interviews, and documentation. The research results show that companies should use the EOQ method for steel raw materials and Min Max for copper raw materials, which will save inventory costs by 25.16% or IDR 9,340,698. Apart from that, the safety stock value, maximum inventory, and reorder point are also known to avoid stockouts and overstocks. By implementing inventory procurement methods, companies can find out the maximum inventory that should be in the warehouse, expedite production operational activities, and save space usage which of course benefits the company.

Analysis of Cocoa Bean Inventory Control with Continuous (Q) and Periodic (P) Review System Methods at Majapahit Chocolate Factory

Majapahit Chocolate Factory is one of the manufacturing industries that processes cocoa beans into various chocolate products called Majapahit Chocolate. In the production process, Majapahit Chocolate Factory has not controlled raw material inventory efficiently using any method so there is still a frequent mismatch between the amount of inventory and production needs. The higher the amount of inventory, the higher the inventory costs incurred. Based on these problems, this study aims to determine the control of cocoa bean inventory to minimize the total cost of inventory at the Majapahit Chocolate Factory. The results showed that the most minimal total inventory cost was the Continuous Review System method of IDR303,863,596.70 with a savings of 1% from the Periodic Review System method and 4% from the company method. After forecasting the need for raw materials for January-December 2023 using the Weighted Moving Average method, the total demand for cocoa beans during the 2023 period is 61752 kg. Meanwhile, the size of the order quantity is 5739 kg and the reorder point is 8234 kg, so the total inventory cost required in January-December 2023 is IDR1,278,081,375.44.

Inventory Control Analysis of Sticker Raw Materials Using Continuous (Q) and Periodic Review (P) Methods at PT Adiguna Label Indonesia

PT Adiguna Label Indonesia is one of the manufacturing industries engaged in producing label stickers. To produce label stickers, this company requires the main raw material, one of which is substrate. PT Adiguna Label Indonesia is presently having trouble managing the supply of substrate type Raflacoat 22.5 cm. This type of substrate often fluctuates in the amount of demand, so it is not uncommon to experience stockouts that cause many customers to cancel orders due to insufficient material supplies. To reduce the susceptibility to out-of-stock and overstock situations along with the overall cost of inventory at PT Adiguna Label Indonesia, this study intends to manage the inventory of raflacoat substrate 22.5 cm. The method used is Continuous Review (Q) Lost Sales and Periodic Review (P) Lost Sales. The calculation results obtained that the total cost of minimal inventory is the method of Continuous Review (Q) Lost Sales of IDR. 2,160,302,178 with the company method of IDR.2,326,322,927, resulting in cost savings of IDR. 166.020.750.- or 7.14%. After forecasting in March 2023 – February 2025, the total need reached 2304 rolls, then the inventory control of Raflacoat 22.5cm substrate raw materials obtained a number of orders of 193 rolls / one order with a total inventory cost of IDR. 2,739,423,128,-.

Analisis Penerapan Metode Economic Order Quantity Sebagai Upaya Pengendalian Persediaan Bahan Baku Pada UD Imanuel Tompaso Baru

Economic Order Quantity is a method for determining the optimal purchase quantity so that there is no excess or shortage of raw materials. The aim of this research is to see how the Economic Order Quantity method is applied as an effort to control raw material supplies. The type of research used is descriptive qualitative. The research results show that there are quite large differences in the number of purchases, purchase time, and total inventory costs using the company's own method and the application of the Economic Order Quantity method. The number of purchases of raw materials according to the company is greater than using the Economic Order Quantity method, the company's purchasing frequency is more frequent than using the Economic Order Quantity method and there is a large comparison of total inventory costs. Therefore, it is hoped that companies can apply the Economic Order Quantity method to determine the optimal purchase quantity. The right repurchase time and at the same time can reduce total inventory costs.

Implementasi Penyusunan Anggaran Bahan Baku Dengan Metode Economic Order Quantity (EOQ) Pada Batik Sekar

This study analyzes the Economic Order Quantity (EOQ) as a raw material budgeting in Batik Sekar Jati. The purpose of this study is to determine whether the raw material inventory control applied by UKM Batik Sekar Jati has optimal in emphasizing production costs, and to determine the minimum total inventory cost. This research uses descriptive method that is quantitative in nature. Descriptive analysis techniques used to analyze data on the problem of controlling the raw material budget in an effort to reduce production costs are using the Economic Order Quantity (EOQ) method. The results showed that the company can save costs if the company uses the EOQ method, where the ordering cost was lower than the ordering cost according to the method that the company was currently running. The optimal purchase of raw materials according to the company's actual data was more than the purchase according to EOQ which purchases less. For budget control of raw materials Batik Sekar Jati can use Economic Order Quantity (EOQ) analysis, Safety Stock (SS), Reorder Point (ROP) and Total Cost (TC).

Upaya Meningkatkan Efisiensi Bahan Baku Dengan Menggunakan Pendekatan Economiq Order Quantity Studi Kasus Pada CV. Luthfi Jaya Abadi Desa Trisnomulyo Lampung Timur

Tapioca production is a business that is engaged in the field of basic needs that focuses on the production of tapioca flour with the marketing area of ​​Lampung Province in general and Central Lampung Regency in particular. The main raw material used in the production process is cassava which is obtained from collectors and farmers directly. So the purpose of this research is to find out 1) the number of orders/purchases that must be made by the cassava factory in 2017-2020 (Economic Order quantity), 2) the supply of raw materials that must be determined at the cassava factory in 2017-2020 (Safety Stock), 3 ) the cost to determine the reorder of cassava rows in 2017-2020 (Reorder Point), 4) the cost of the total amount needed to determine the calculation at the cassava factory in 2017-2020 TIC (Total Inventory Cost).
 This type of research uses quantitative methods. Sources of data used in the form of secondary data relating to the supply of raw materials in CV. Luthfi Jaya Abadi, Trisnomulyo Village, Batanghari Nuban District, East Lampung Regency 2017-2020.
 The research results prove that 1) The most economical purchase in 2017 using the Economic Order Quantity method is 360 tons with a purchase frequency of 833 times in one year. Whereas in 2018 it was 400 tons with a purchase frequency of 15 times a year, for 2019 it was 240 tons with a purchase frequency of 7 times in one year, and in 2020 it was 1,200 tons with a purchase frequency of 29 times in one year. 2) Calculation that the standard storage of raw material usage in 2017 is 6.52 tons, while the Safety Stock for 2017 is 10.75 tons. Then the results in 2018 for the calculation of standard storage of raw material use in 2018 were 0.388 tons, while the Safety Stock for 2018 was 0.640 tons. For 2019, the calculation result of standard storage of raw material usage in 2019 was 0.687 tons, while the Safety Stock for 2019 was 1.133 tons and the last calculation results of Standard storage of raw materials usage in 2020 was 26.99 tons, while the Safety Stock for 2020 amounting to 44.53 tons. 3) From the results of the ROP (Re Order Point) in 2017 the reorder achievement was 10,041 tons, in 2018 it was 42,125 tons, in 2019 it was 39,125 tons and in 2020 it was 42.194 tons. 4) In 2017 obtained TIC based on calculations using the EOQ method of Rp. 1,041,666,250,-, for the following year, 2018 the TIC is Rp. 4,218,750, -, next year 2019 the results of the calculations obtained TIC results of Rp. 4,000,000, - and the next in 2020 will get Rp. 2.125.000,- from the calculation of TIC.

Analisis Pengendalian Persediaan Bahan Baku Serbuk Warna dengan Pendekatan Periodic Review Joint Replenishment untuk Sistem Persediaan Stokastik di PT XYZ

PT XYZ is a manufacturing company engaged in the manufacture of extruded aluminum profile products. The problem experienced by PT XYZ is that the company often orders several types of color powder raw materials separately even though they come from the same supplier. This causes more frequent orders to be made. The company also sometimes experiences shortages and excess stock of color powder raw materials which can cause swelling of the company's inven-tory costs. The purpose of this study is to determine the optimal inventory control of color pow-der raw materials to minimize the company's total inventory costs. This research was conducted using a probabilistic model approach with the periodic review joint replenishment method. This method is carried out with a periodic review (p) model, ordering raw materials will be carried out in combination every certain time interval. The calculation results obtained the minimum total inventory cost is with the Periodic Review Joint Replenishment method of Rp 19.519.552.589,- compared to the company method of Rp 19.670.799.095,-. Thus, a savings of Rp 151.246.506 is obtained, or a savings percentage of 0.8%. Forecasting for the period November 2023 - October 2024, the value of the order time interval is obtained every 15 working days with the inven-tory level of each raw material is for white powder of 22.336 kg, brown powder of 12.413 kg, black powder of 8.290 kg, and milk white powder of 1.882 kg with a total inventory cost of color powder raw materials of Rp 19.559.415.435.

Model Integrasi Sistem Produksi Single Supllier & Multi Buyer

To compete in a market that continues to grow rapidly, companies need to have the ability to meet market needs. One method that is often used to determine the amount of production in each producer cycle is Economic Production Quantity (EPQ). An integrated inventory model is used to achieve optimal results in the supply chain. In this research, a supply chain network model is developed between one producer and two buyers with the aim of minimizing inventory costs. Producers make simultaneous deliveries to each buyer, and these goods are then sold on the market to consumers. Annual demand from each buyer is assumed to vary, and the inventory cycle is also the same length. The optimal production quantity in one production cycle is found through the use of a simple algorithm. Numerical experiments are carried out to test this algorithm. Numerical experimental results show that the delivery frequency in one production cycle is 4 times. with an optimal production quantity of 1,898 units. The optimal quantity for each shipment to each buyer is 380 units for buyer 1, 285 units for buyer 2, 475 units for buyer 3, 569 units for buyer 4, and 190 units for buyer 5. The total inventory costs in this model, which involving one producer and five buyers, is Rp. 76,757,641.02. This inventory cost is the minimum cost obtained from the numerical experiments that have been carried out.

Controlling Raw Material Inventory using the Economic Order Quantity (EOQ) Method at PT. ICI Paints Indonesia

The inventory control system comprises a set of control policies to determine the level of inventory to be maintained, when orders to replenish inventory should be placed, and how large orders should be. This system determines and ensures the availability of inventory in the right quantity and at the right time. The aim of inventory is in the right quantity and at the right time. Inventory management aims to provide the necessary raw materials for the production process to run smoothly without shortages or excess inventory, thus minimizing inventory control of raw materials, specifically Titanium Dioxide and Calcium Carbonate. The company often faces shortages and excess inventory of these raw materials. The company must estimate the future demand for Titanium Dioxide and Calcium Carbonate raw materials. This prompts the research question of how to analyze the implementation of the Economic Order Quantity (EOQ) method for inventory control of these specific raw materials at PT. ICI Paints Indonesia. This research employs qualitative techniques and analyzes data using the Economic Order Quantity (EOQ) method, Lead Time, Re-Order Point, and Total Inventory Cost Order. The results of this study indicate that inventory control of raw materials using the Economic Order Quantity (EOQ) method is more efficient for managing Titanium Dioxide and Calcium Carbonate raw materials at PT. ICI Paints Indonesia. The company can optimize the inventory of Titanium Dioxide and Calcium Carbonate raw materials and reduce purchasing costs. By establishing a reorder point, the company can anticipate excess or shortage of Titanium Dioxide and Calcium Carbonate raw materials, thus minimizing inventory-purchasing costs.

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.

Inventory Control for Eyeglass Supply Using the P Model Based on Sales Products Sales Forecasting (Case Study: Merry Optic Bandung)

Inventory is a resource owned by the company to be used in the production process to meet consumer demand. Companies must be able to control inventory appropriately in order to avoid excess or shortage of inventory by using inventory control. Inventory control is a necessary part of a company that requires an appropriate inventory policy to meet uncertain needs. Based on this background, this study discusses the single item inventory model in the form of photochromic glasses at Merry Optik to find the optimal total inventory cost. In meeting the uncertain needs of the company, the Additive Decomposition forecasting method is used in order to find out the forecast sales data pattern in the future. Uncertain demand causes the inventory system to be probabilistic, so it is necessary to carry out probabilistic inventory control. The P model of the case of back orders was chosen because the range of ordering periods is fixed and the company can buy inventory when it runs out before the time the inventory order is made so that buyers can wait until the inventory arrives. By using Model P for the case of back orders, the company can obtain the period between orders, the total cost of inventory, and the optimal level of service. Based on the results of this study, a pattern of sales forecast data is obtained which repeats every 12 months. Companies must order glasses within a period of 32 days between orders so that it is optimal and able to provide a reduction in the total inventory cost of IDR 21,828,771 with a service level of 95%. Companies can save on inventory costs if they use shorter periods between orders. The total cost of inventory can be more optimal if the company reduces the cost of storing inventory in the warehouse.

Inventory Control of Vaccine Products in Pharmaceutical Company Using The Economic Order Quantity Model and Monte Carlo Simulation

Health is a basic need in human life. People spend a lot of money to maintain their health. One of the preventive health service options is to vaccinate. Indonesia is a country that can produce its own vaccines with its local pharmaceutical companies. The company faces stiff competition in today's rapidly growing market. Therefore, evaluation and assessment are needed to measure the progress of the company's development. One useful assessment is a company's financial review. Inventory control ensures that the planned approach can minimize costs without disrupting the production process. This research simulates data of demand and analyzes the inventory control based on simulated data. The object used in this research is the inventory of products of pharmaceutical companies. The data used is secondary data such as data of product quantity sold per period, purchasing cost, order cost, holding cost, shortage cost, and lead time. The method used for inventory control is Economic Order Quantity (EOQ) model and Monte Carlo simulation. The simulation results on the monthly demand for vaccine products show that the total demand for one year is 3.394.805 vials for Vaccine A, 1.320.900 vials for Vaccine B and 107.345 for Vaccine C. Based on simulated data processing, calculations using the probabilistic EOQ model result in total inventory costs of Rp.456.918.008.386,14 for Vaccine A, Rp 218.292.795.949,34 for Vaccine B, and Rp. 9.177.930.319,05 for Vaccine C.

THE PLANNING FOR UPPER SHOES RAW MATERIAL INVENTORY USING THE MATERIAL REQUIREMENT PLANNING (MRP) METHOD (Case Study : PT X)

The planning of raw material inventory is one of the essential factors in planning the order of the raw materials that can make a company maintain its production quality. The company’s policies can be implemented in various ways, such as in planning the raw materials inventory to avoid shortages and excesses of the raw materials supply. However, X Inc. has not implemented inventory planning properly, making the costs incurred by the company not optimal. Thus, Material Requirement Planning (MRP) will be used to determine the scheduling time and quantity of raw materials for ordering with lot sizing techniques. Lot sizing techniques provide solutions to determine the right quantity of raw material orders and minimum total inventory costs with techniques which are Lot for Lot (LFL), Least Unit Cost (LUC), Economic Order Quantity (EOQ), and Silver-Meal. Based on the calculation results, the four lot sizing techniques show that the LFL technique is the optimal technique compared to other techniques because it produces the minimum inventory cost of Rp566.015.685,05. Thus, the company can profit Rp13.295.563,75 compared to company policy.

Analisis Pengendalian Persediaan Barang Menggunakan Metode EOQ

The aim of this research, based on the problem formulation above, is to find out that inventory management by using the Ecolnolmic Order Quantity (EOQ) met mode can minimize the total inventory costs UMKM Home Industry Rumah Tempe Asli HB Pematangsiantar. This thesis research uses a quantitative descriptive method. The method used in controlling tempe goods inventory is the EOQ method. The EOQ method is a inventory management technique carried out by the company by determining the most efficient inventory amount of goods and producing balanced processing costs and storage costs, so that The company can minimize inventory costs. From the results of research using the EOQ method, the total inventory carried out with the EOQ metdown is 80.179 pcs with a purchase frequency of 22 times. The amount of security stock required by UMKM Home Industry Rumah Tempe Asli HB Pematangsiantar is 8.200 pcs. Total inventory using the EOQ method is IDR Rp1.122.421. EOQ meting can reduce the costs of providing merchandise more or can be said to be efficient if applied to UMKM Home Industry Rumah Tempe Asli HB Pematangsiantar. In other words, the inventory control carried out by the company is still not yet optimal. By using the EOlQ met mode in managing mobile inventory, Rumah Tempe Asli HB can optimize the cost of mobile inventory.

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.

Analysis of Chemical Inventory Control in the GGCP Unit Using Forecasting and EOQ Methods at PT. XYZ

PT. XYZ is a company operating in the energy producing industry. Which has 2 types of products, steam power and electricity. Steam in GGCP contains 3 chemicals, namely Amine, phosphate, oxygen scavenger. However, this company experienced an accumulation of excessive chemical stocks and reduced chemical consumption. This research aims to determine the number of company orders and determine overall inventory costs using forecasting methods and economical order quantities. In calculating the Total Inventory Cost (TIC) results, there is a significant calculation where TIC EOQ has an economical cost for Amine chemicals of IDR. 15,879,937 while the company's TIC is IDR. 36,226,539. with forecast results for Amine chemicals of 4148/ltr, phosphate of 3061/ltr, and scavenger oxygen of 5450/ltr. Meanwhile, the EOQ calculation results obtained a value for Amine chemicals of 1361/ltr, phosphate of 1164/ltr and 1554/ltr for oxygen scavenger chemicals.

Analysis of Inventory Control of Perishable Goods with Capital Constraints and Warehouse Capacity Using the Lagrange EOQ Method (Case Study UD. XYZ)

Inventory control is a company policy in managing goods in order to optimize the number of orders and minimize inventory costs. The object of this research is PT XYZ in Gresik city which produces tempeh and tofu. Several raw materials are needed in the production process, one of which is soybeans. As the main raw material for making tempeh and tofu, soybeans are perishable goods. Previously, the company used a method based on past usage data in controlling its inventory, resulting in bloated inventory costs and a buildup of raw materials in the warehouse. Therefore, researchers need a method that is economical and takes into account the limitations of the company. The Lagrange EOQ method is a model that measures the order quantity by looking at one or more restrictions. The results of the Lagrange EOQ method get an order quantity of 20 sacks of soybeans with an order frequency of 27 times a year, a total inventory cost of Rp. 665,575, an ROP of 12 sacks and a safety stock of 10 sacks.