An economic order quantity model for an imperfect production process with entropy cost

2009 ◽  
Vol 118 (1) ◽  
pp. 26-33 ◽  
Author(s):  
M.Y. Jaber ◽  
M. Bonney ◽  
I. Moualek
Keyword(s):  
Production Process ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Imperfect Production ◽  
Imperfect Production Process

scholarly journals ANALYSIS CONTROL SUPPLIES RAW MATERIALS TO EFFICIENCY COST, USING THE METHOD OF ECONOMIC QUANTITY ORDER AT CV. PQR

2018 ◽  
Vol 1 (01) ◽  
pp. 41
Author(s):  
Wartoyo Hadi
Keyword(s):  
Production Process ◽  
Raw Materials ◽  
Analysis Data ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Safety Stock ◽  
Reorder Point ◽  
Efficiency Cost

The purpose of the implementation of this research is to find the effectiveness of supplies raw materials, the method of analysis data used in the square is the smallest trend for planning raw materials and controling supplies use method of economic order quantity (EOQ) analyze reorder point. Analysis reorder point and safety stock. And analyzes efficiency cost of raw materials. Forecasting raw materials years 20x7 according to the smallest trend, cloth and dakron happened the difference is greater than of the target needed (according to a company); controling supplies raw materials with the methods eoq in 20x7 more effective than reservations raw materials cloth and dakron and more efficient than cost raw materials. The company should review the policy of forecasting raw material supplies that had been undertaken and make planning supplies the raw material that more accurate using the firm’s historical data and not only targeting the output production next year, so that machines production can be optimized. Considering the use of control supplies with the methods economic order quantity to companies, so this analysis can determine material reservations, supplies safety, maximum supplies to avoid the risk of running out of raw materials, because the companies often happened less dressed up a result of reservations that time is inaccurate, the lack of safety stock and the deferred the delivery of goods which often disturb the production process, by this method can prevent these things, so that the production process can run smoothly and minimize the cost of raw materials supplies.

scholarly journals ANALISIS PENERAPAN ECONOMIC ORDER QUANTITY (EOQ) DI PABRIK GULA MADUKISMO BANTUL

2018 ◽  
Vol 32 (2) ◽  
pp. 126
Author(s):  
Risa Rahmawati ◽  
Endang Siti Rahayu ◽  
Susi Wuri Ani
Keyword(s):  
Data Analysis ◽  
Production Process ◽  
Sugar Cane ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Basic Method ◽  
Order Quantity

<em><span>The purpose of this research to analyze the result of Economic Order Quantity in Madukismo Sugar Manufacture during the year of 2013-2015. The basic method used in this research was analytical, descriptive with case study technique. Data analysis used Economic Order Quantity (EOQ). The results of the study showed that during 2013-2015 the order quantity according to Madukismo Sugar Manufacture policy was 29.377 Quintal with the frequency of ordering 192 times, 30.328.46 Quintal with the frequency of ordering 168 times, and 31.883,06 Quintal with the frequency of ordering 142 times, sequentially. Whereas the result of Economic Order Quantity (EOQ) calculation during 2013-2015 where 52,916.47 Quintal with the frequency of ordering 107 times, 45,980.57 Quintal with a frequency 111 times, and 49,135.20 Quintal with a frequency 92 times, consecutively. The result of Economic Order Quantity calculation to intent filled up the needs of sugar cane and to maintain the sustainability of the production process. The effort to provide Economic Order Quantity of sugarcane,Madukismo Sugar Manufacture managed for expanding of sugarcane planting area. So that, Madukismo Sugar Manufacture could run the production process properly and sustainability.</span></em><br /><em></em>

OPTIMALISASI PENGADAAN BAHAN BAKU DALAM RANGKA MEMINIMALKAN TOTAL BIAYA PERSEDIAAN TEMBAKAU PADA PT BENTOEL INTERNATIONAL INVESTAMA DI MALANG

2019 ◽  
Vol 2 (1) ◽  
pp. 23
Author(s):  
Dwi Dayanti Oktavia ◽  
Peni Indarwati ◽  
Marhaerni Fikky Febriananta
Keyword(s):  
Production Process ◽  
Raw Materials ◽  
Cost Savings ◽  
Optimal Level ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Total Cost ◽  
The Cost

A company should maintain an adequate or optimal level of inventory so that production operations can run smoothly and efficiently. What needs to be considered in this case is that the required raw materials are always available, so as to guarantee the smooth production process. However, the amount of inventory should not be too much because this will harm the company. Too much inventory will increase maintenance costs and storage costs in the warehouse. In addition, the amount of inventory that is too much can also increase the likelihood of losses due to damage and loss of quality that can reduce company profits. And vice versa, the amount of inventory that is too small will hamper the production process so that the company will suffer a lot of losses including: the machine does not work as it should, many workers are unemployed, and can even result in the cessation of the production process. This study aims to determine how the calculation of raw materials, what is the total cost of raw material inventory if the company establishes an EOQ (Economic Order Quantity) policy, what is the limit or point of ordering raw materials needed by the company during the grace period at PT.Bentoel International Investama in Malang.The population used is the supply of tobacco raw materials at PT. Bentoel International Investama, where this research was conducted by interview and documentation. The variable in this study is the supply of raw materials. The analysis used is the EOQ (Economic Order Quantity) method.The results of the study, if using the EOQ method in 2017 the cost savings of Rp 40,290,256,931, while in 2018 the cost savings of Rp. 44,388,428,549. Thus there is a difference between inventory policies carried out according to the company with EOQ calculations. It can be concluded that the supply of raw materials every year has increased raw materials, the frequency of purchasing raw materials when using raw materials when using the EOQ method is 2 times in one period, the limit for ordering raw materials needed by companies when using the 2017 EOQ method is 218,176.7 kg, while in 2018 it will be 210,853 kg. The total cost of raw material inventory calculated according to EOQ is less than that spent by the company, so there is a cost savings of raw material inventory

scholarly journals ANALISIS PERSEDIAAN BAHAN BAKU PADA AGROINDUSTRI KRIPIK BUAH SANUR DI KABUPATEN MALANG

2017 ◽  
Vol 10 (1) ◽  
pp. 47
Author(s):  
Nineng Puspito Ratih ◽  
Anik Suwandari ◽  
M Rondhi
Keyword(s):  
Production Process ◽  
Raw Materials ◽  
Point Method ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Traditional Methods ◽  
Safety Stock ◽  
Key Informant

Various fruits can be tranformed into delicious edible foods like chips. That was a basic idea which inspired “Sanur” Fruit Chips Agroinduntry to make chips which based on fruits processing. This agroindustry still performs traditional methods to manage its fruit inventory as raw material. This lead to a fluctuation and uncertainty in inventory stock. The traditional inventory in this agroindustry also caused a bottleneck in production process. The research was aimed to : (1) determine the economic order quantity of fruit chips agroindustry. (2) determine the most efficient re-order point of inventory in “Sanur” Fruit Chips Agroindustry. The research was descriptive and analytical. The key informant was selected purposively based on some criteria. Data was collected by using interview and observation. The result showed that : (1) economic order quantity was more preferable than Lot for Lot and tradional methods. (2) the traditional re-order point method in “Sanur” fruit chips agroindustry was not efficient. It was indicated by the safety stock, the amount of procurement and the inventory of minimum raw materials which showed full uncertain.

scholarly journals Analysis of Inventory Control by Using Economic Order Quantity Model – A Case Study in PT Semen Padang

2019 ◽  
Vol 18 (2) ◽  
pp. 116
Author(s):  
Prima Fithri ◽  
Alizar Hasan ◽  
Fadhita Maisa Asri
Keyword(s):  
Production Process ◽  
Inventory Control ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Optimal Order ◽  
Order Quantity ◽  
Cement Production ◽  
Total Cost ◽  
Optimal Order Quantity

Inventory control is a very important issue. It is because the amount of inventory will determine or affect the smoothness of the production process as well as the effectiveness and efficiency of the company. PT Semen Padang is a manufacturing company that produces 10,400,000 tons of cement per year. The achievement of the cement production target at this company depends on the availability of raw materials needed in the cement production process itself. Gypsum is an additional material of the cement production process which is very important because it is a raw material that must exist in the process of making cement. So, if the inventory of gypsum cannot meet the needs of production, then the production process of cement making will be disrupted. PT Semen Padang is using the Min-Max method for inventory control. But the costs are quite high. The cost of inventory can be minimized by using another method such as EOQ (Economic Order Quantity). The conclusions of this research are in 2016 by using EOQ method, the optimal order quantity is 32,073 ton per order, and the frequency is 9 times in a year with total cost Rp. 4,757,673,813.48, and in 2017, the optimal order quantity is 34,856 tons per order and the frequency is 9 times in a year with total cost Rp. 9,694,805,608.36.

scholarly journals ANALISIS PENGENDALIAN PERSEDIAAN BAHAN BAKU PADA PABRIK TAHU SKM DI BANJARBARU

2019 ◽  
Vol 5 (2) ◽  
Author(s):  
Imawati Yousida
Keyword(s):  
Production Process ◽  
Inventory Control ◽  
Production Cost ◽  
Research Study ◽  
Raw Materials ◽  
Secondary Data ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity

Abstract: The purpose of this study was to determine the analysis of production cost collection at the SKM Tofu Factory in Banjarbaru and to apply the Economic Order Quantity (EOQ) method. This study is a research study by collecting data with documentation techniques and data used is secondary data in the form of material inventory raw soybeans and other costs. Continuing with these data so that the production process can run smoothly by fulfilling the raw material inventory needs, namely by applying raw material inventory control using the Economic Order Quantity (EOQ) method. The results showed that the SKM Tofu Factory could save the purchase of raw materials for soybeans by Rp 129,132,512.5, - Analysis of raw material inventory control using the Economic Order Quantity (EOQ) Method. the results of the application of the method obtained EOQ value with a total quantity of 2,908 Kg per month for January each time ordering and the frequency of ordering 5 times a month. Raw material inventory (SS) is 11,124.38 Kg per month, the maximum inventory (MI) is 10,293.72 Kg and the Total Supply Cost is Rp. 1,325,854,300. Savings on inventory control using the EOQ method is Rp 129,132,512.5 when using this method Keywords: Inventory , Tofu Factory, EOQ Abstrak: Tujuan dari penelitian ini adalah Untuk mengetahui analisis pengumpulan biaya produksi pada Pabrik Tahu SKM di   Banjarbaru dan menerapkan metode Economic Order Quantity (EOQ)  Penelitian ini adalah penelitian studi dengan mengumpulkan data dengan teknik dokumentasi dan data yang digunakan adalah data  sekunder berupa  pembelian persediaan bahan baku kacang kedelai dan  biaya lainnya. Selanjutkan dengan data tersebut agar proses produksi dapat berjalan lancar dengan pemenuhan kebutuhan persediaan bahan baku yaitu dengan menerapkan  pengendalian persediaan bahan baku menggunakan metode Economic Order Quantity (EOQ). Hasil penelitian menunjukkan bahwa Pabrik Tahu SKM dapat menghemat pembelian bahan baku kacang kedelai sebesar   Rp 129.132.512,5,-  Analisis pengendalian persediaan bahan baku dengan menggunakan  Metode Economic Order Quantity ( EOQ). hasil dari penerapan metode tersebut didapat nilai EOQ dengan jumlah kuantitas sebanyak 2.908 Kg perbulan untuk bulan Januari setiap kali melakukan pemesan dan frekuensi pemesanan sebanyak 5 kali dalam  sebulan. Pengaman persediaan ( SS)  bahan baku  sebanyak 11.124.38 Kg rata rata perbulan, persediaan maksimum (MI) adalah sebanyak 10.293,72 Kg dan Total Biaya Persaediaan sebesar Rp 1.325.854.300. Penghematan  atas pengendalian persediaan dengan metode EOQ adalah sebesar  Rp 129,132,512.5 apabila menggunakan metode  tersebut. Kata kunci : Persediaan, Perusahaan Tahu, EOQ

scholarly journals PENGENDALIAN PERSEDIAAN BAHAN BAKU TUMPI MENGGUNAKAN METODE ECONOMIC ORDER QUANTITY (EOQ) DAN METODE PERIOD ORDER QUANTITY (POQ) DI UD. JAYA ABADI SOLUTION

2019 ◽  
Vol 4 (2) ◽  
pp. 68-75
Author(s):  
Erik Suyanto ◽  
Andhika Mayasari ◽  
Nur Kholis
Keyword(s):  
Production Process ◽  
Animal Feed ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Total Cost ◽  
Feed Manufacturing ◽  
Material Procurement ◽  
Procurement Cost

The controlling planning of raw material needs in a company is very important to keep productivity on production activityand its influence on the material procurement cost. UD. Jaya Abadi Solution is one of the company that produces various fodder from the waste of animal feed manufacturing factory. The fluctuation often happens in raw material availability for production process especially “tumpi” raw materialwhich causes the production process is not optimal. The purpose of the research is to control “tumpi” raw material availability by using Economic Order Quantity (EOQ) method and Period Order Quantity (POQ) methodand to know the different cost between the company calculation and EOQ and POQ methods caculations. The methods used in this research are Economic Order Quantity (EOQ) method and Period Order Quantity (POQ) method, these methods are expected to be able to cope the fluctuation of the “tumpi” raw material availability. Based on the result of the research using Economic Order Quantity (EOQ) method and Period Order Quantity (POQ) method yielded is EOQ value of 220 tons with total cost of Rp. 113.165.509, while POQ value is 205 tons with the total cost of Rp. 113.285.546. The different cost produced is 19 % compared to the company total cost.

scholarly journals Analisis Persediaan Material Jenis Botol Menggunakan Metode Economic Order Quantity (EOQ)

2018 ◽  
Vol 2 (3) ◽  
Author(s):  
Diana Khairani Sofyan ◽  
Sri Meutia
Keyword(s):  
Production Process ◽  
Raw Materials ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
No Production ◽  
Order Quantity ◽  
Safety Stock ◽  
Reorder Point ◽  
Production Department

Inventories have an important role in business operations. In fact, problems in controlling inventory is the most important thing we've come across in any company. Inventories have enormous influence for a smooth production process. PT Ima Montaz Sejahtera (PT IMS) is one of the companies engaged in the manufacture beverage Bottled Drinking Water. PT IMS is distributes its products throughout NAD. The main raw material used was water purchased from PT. PIM. The company ordered a bottle of the product medium, glass cup on products, lids, labels and cartons were booked from Medan which become relationship with them. But in reality, the bottle material is not always available because raw material ordering is not efficient, thus inhibiting the production process and increase the use of cost. In the years 2015-2016 from September to August happens 18 times a monthly ordered are ordering frequency from 1 to 2 orders with the amount of raw materials that different every month. Based on preliminary research shows that ordered data in September, October, November, December, January and February each performed two times ordered, while March, April, May, June, July and August each time is 1 ordered. Additionally in 2015 there were eight times the idle time in the production department Bottleline due to the absence of Safety Stock thus automatically no production activities in the production department Bottleline to incur losses for the company. Based on this it needs to be analyzed at the company's inventory control. The results showed that the frequency of the purchasing of raw materials by using the EOQ method which is 3 times the total cost of supply of raw materials companies amounted to Rp12,041,404. Where the company must hold safety stock to expedite the process of production by the number of 407.685 bottles, with reorder point of 362.961 bottles.Keywords: Inventory, Economic Order Quantity (EOQ), Reorder Point, Safety stock

scholarly journals OPTIMALISASI PERSEDIAAN BAHAN BAKU BAGI KELANCARAN PROSES PRODUKSI PADA TOKO ROTI DWI JAYA BAKERY KUPANG

2020 ◽  
Vol 13 (3) ◽  
pp. 271-284
Author(s):  
Yohanes M M Taek Bete ◽  
Ni Putu Nursiani ◽  
Wehelmina M Ndoen
Keyword(s):  
Production Process ◽  
Raw Materials ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Safety Stock

This research will focus on the controlling of raw materials supply to expedite the production process.This study aims to determine and analyze the optimization of raw material supplies in the Dwi JayaBakery Kupang. The method used in this study is the EOQ (economic order quantity), Safety Stock,Re-order Point methods. The instruments used in this study were interviews, literature studies, anddocumentation. The results showed that, in ordering raw materials, Dwi Jaya Bakery still usesconventional calculations where by predicting the amount of raw materials replenishment if there isonly a small amount of supplies, and also has not applied safety stock and ROP optimally, so thatsometimes raw materials in the warehouse were lack of inventory, it indirectly affect profits from DwiJaya Bakery and which results in delays in ordering so that it can disrupt the production process. Keywords: Optimization of Raw Material Inventory, Production Process, EOQ (Economic OrderQuantity

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