Economic Order Quantity Model for Minimizing Total Inventory Cost at PT PQR in Indonesia

2015 ◽  
Vol 21 (4) ◽  
pp. 1053-1056
Author(s):  
Bachtiar H. Simamora
Keyword(s):  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Inventory Cost ◽  
Traditional Practice ◽  
Inventory Costs ◽  
Eoq Model ◽  
Total Inventory

The purpose of this research is to see whether an Economic Order Quantity model can be used to reduce cost of inventory significantly in PT PQR, manufacturer of spring and sponge mattresses in Pekanbaru, Indonesia. The research was conducted on three main materials required in producing spring and sponge mattresses. Using Economic Order Quantity (EOQ) model to analyze historical demand on main materials, it is proven that with EOQ model the company can save by more than 45% from procuring and inventory costs of those materials. The research continues to forecast the sales demand to get the annual requirement of materials needed in 2014 and calculate the EOQ model again. The results show that, comparing with traditional practice done by company, EOQ model can reduce costs up to 118 million rupiah per year.

scholarly journals Analisis Pengendalian Persediaan Bahan Baku dengan Menerapkan Metode EOQ (Economic Order Quantity) pada PT. Jatisari Furniture Work

2021 ◽  
Vol 5 (1) ◽  
pp. 215
Author(s):  
Arga Sutrisna ◽  
Rizki Ginanjar ◽  
Suci Putri Lestari
Keyword(s):  
Production Costs ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Analysis Tool ◽  
Order Quantity ◽  
Inventory Cost ◽  
Total Cost ◽  
Inventory Costs ◽  
Total Inventory

This research objectives aims to determine and analyze raw material inventory control, the ideal raw material inventory that the company must provide and the efficiency of production costs carried out by Jatisri Furniture Work in Tasikmalaya for the period 2018.11 – 2020.02. The data collection method in this study is by direct observation at Jatisari Furniture Work in Tasikmalaya. Using techniques such us interviews, observation, and documentation. These observations were made in production reports for the years 2018 – 2020. The analysis tool was carried out using the Economic Order Quantity (EOQ) method such us safety stock, reorder point, and total inventory cost. The result of the Economic Order Quantity (EOQ) analysis show that the total cost of raw the material inventory that must be incurred by the company is greater than the total cost of inventories calculated according to the EOQ method. Companies should follow the calculations from the EOQ method so that they can save on raw material inventory costs, so that production costs are more efficient.

scholarly journals PENGATURAN PERSEDIAAN BERAS DI PERUM BULOG DIVRE SULTENG DENGAN METODE ECONOMIC ORDER QUANTITY (EOQ)

2018 ◽  
Vol 15 (2) ◽  
pp. 220-237
Author(s):  
Nildawati Nildawati ◽  
R Ratianingsih ◽  
A Sahari
Keyword(s):  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Inventory Cost ◽  
Inventory Costs ◽  
Reorder Point ◽  
Rice Price ◽  
Efficiency Cost ◽  
Total Inventory ◽  
Central Sulawesi

Perum BULOG of Central Sulawesi Division is a national rice logistic company that its responsibility is to guarantee the sufficiency to meet the rice needs. Perum BULOG also responsible to keep rice price stability. One of the rice price component is the inventory costs that need to be managed. In this research the management is refered to the rice scheme demand of four storages, that are Olaya, Lawanga, Jaya Kencana Toili and Galang. This study uses EOQ (Economic Order Quantity) that consist of five priorities, that are determining the of economical order, determining the amount of safety stock, determining the maximum inventory quantities, determining the reorder point and determining total inventory cost. The results showed that the number of economical order storage of Olaya is 1.817.120,57 kg/message, Lawanga is 1.893.400,78 kg/message, Jaya Kencana Toili is 1.575.543,38 kg/messages and Galang is 1.578.742,75 kg/message. The total Inventory Security for Olaya is 32.371,28 kg, Lawanga is 41.020,07 kg, Jaya Kencana Toili is 30.630,61 kg, and Galang is 57.307,99kg. The maximum inventory for Olaya is 1.849.491,85 kg, Lawanga is 1.934.420,85 kg, Jaya Kencana Toili is 1.606.173,99 kg, and Galang is 1.636.050,74 kg. The reorder point is proposed when rice stock of Olaya reaches 323.664,52 kg, Lawanga reaches 357.282,87 kg, Jaya Kencana Toili reaches 249.620,29 kg and Galang reaches 277.188 kg. The total inventory cost that use Economic Order Quantity is Rp. 2.507.626,39 for Olaya, Rp. 2.612.893,07 for Lawanga, Rp.2.174.249 ,87 for Jaya Kencana Toili, and Rp 2.178.665,00 for Galang. The Efficiency cost of rice supplies BULOG Division is Rp.40.405,29 for Olaya, Rp. 719.256,02 for Lawanga, Rp. 51187.63 for Jaya Kencana Toili, and Rp. 153.528,73 for Galang. These result gives greatest efficiency at the cost of supplies of Perum BULOG Division Central Sulawesi for Lawanga 22% as much.

scholarly journals Analysis Inventory Cost Jona Shop with EOQ Model

2021 ◽  
Vol 3 (1) ◽  
pp. 21-25
Author(s):  
Abigail Vania ◽  
Hanni Yolina
Keyword(s):  
Lead Time ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Inventory Cost ◽  
Valid Model ◽  
Inventory Costs ◽  
Eoq Model ◽  
Holding Cost

Jona Shop is located in Indonesia, Jakarta is currently having a problem. The problem is the shop’s owner thinks that the inventory costs are too big especially for a powdered drink which brand is “Nutrisari”. The author finishes an EOQ (Economic Order Quantity) model for minimize the inventory cost. EOQ model is an old model but a valid model which still used now. Even EOQ model is an old model, many researchers used EOQ model to minimize inventory cost until 50% or more than 50%. But the EOQ model has some assumptions and Jona Shop fulfilled all the assumptions in the EOQ model. The assumptions of EOQ model are demand is known and constant, the lead time is constant and known, only one product can be estimated, every order is accepted in one-time delivery and can be used right away, there is no backorder because run out stock, no discount, and the holding cost per year and the ordering cost per year are constant. The result of the EOQ model can save up to almost 90%.

scholarly journals PENGENDALIAN PERSEDIAAN BARANG DAGANG MENGGUNAKAN METODE ECONOMIC ORDER QUANTITY

2021 ◽  
Vol 3 (2) ◽  
Author(s):  
Fanny Andriani Setiawan ◽  
Margarita Ekadjaja ◽  
Yustina Peniyanti
Keyword(s):  
Inventory Management ◽  
Cost Savings ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Cost Calculation ◽  
Order Quantity ◽  
Inventory Cost ◽  
Inventory Costs ◽  
Total Inventory ◽  
The Cost

Inventory control can be done by reducing the cost of inventory and the number of ordering frequencies economically. PT Tanjung Globalindo Utama or Toko TODA is an oil and accessory retail store that provides various oil needs. Some of the problems are late delivery of goods from suppliers, so that for several days the company cannot operate optimally. On the other hand, the company has also experienced an excess inventory of merchandise, so the company wastes due to excess inventory of merchandise which in turn increases inventory costs. The Community Service Team (PKM) provides a solution for TODA Stores in overcoming their problems by providing training in inventory management in the Economic Order Quantity (EOQ) method. PKM activities were carried out on May 22, 2020. Participation of partners in the PKM program is to participate in discussions, provide historical data, and convey targets. The output is that the TODA Shop can determine the amount and schedule for the procurement of merchandise economically. The result is that Toko Toda begins to understand the importance of controlling inventory so that inventory costs are not too high. Proposed procedures for purchasing merchandise inventory were received and started to be carried out with monitoring from the relevant PKM Team. Based on the calculation simulation results and discussion shows that the use of the EOQ method in controlling merchandise inventory at Toda Stores is very efficient, seen from the amount of cost savings obtained if the total inventory cost calculation uses the EOQ methodABSTRAK:Pengendalian persediaan dapat dilakukan dengan menekan biaya persediaan dan jumlah frekwensi pemesanan secara ekonomis. PT Tanjung Globalindo Utama atau Toko TODA adalah Toko retail oli dan aksesori yang menyediakan berbagai kebutuhan oli. Beberapa permasalahan yang sering dialami adalah keterlambatan pengiriman barang dari supplier, sehingga selama beberapa hari perusahaan tidak dapat beroperasi maksimal. Disisi lain perusahaan juga pernah mengalami kelebihan persediaan barang dagang, sehingga perusahaan melakukan pemborosan akibat kelebihan persediaan barang dagang yang pada akhirnya meningkatkan biaya persediaan. Tim Pengabdian Kepada Masyarakat (PKM) memberikan solusi untuk Toko TODA dalam mengatasi permasalahannya dengan memberikan pelatihan tata kelola persediaan metode Economic Order Quantity (EOQ). Kegiatan PKM telah dilaksanakan pada tanggal 22 Mei 2020. Partisipasi mitra dalam program PKM adalah ikut serta dalam berdiskusi, memberikan data-data historikal, dan menyampaikan target yang hendak dicapai. Target luaran dari kegiatan PKM ini adalah Toko TODA dapat menentukan jumlah dan jadwal pengadaan barang dagang secara ekonomis. Hasil kegiatan PKM adalah Toko Toda mulai memahami pentingnya pengendalian persediaan barang dagang agar biaya persediaan tidak terlalu besar. Usulan prosedur pembelian persediaan barang dagang diterima dan mulai dijalankan dengan pemantauan dari Tim PKM terkait. Berdasarkan hasil simulasi perhitungan dan diskusi menunjukkan bahwa penggunaan metode EOQ dalam mengendalikan persediaan barang dagang pada Toko Toda sangatlah efisien terlihat dari besarnya penghematan biaya yang diperoleh jika perhitungan total biaya persediaan menggunakan metode EOQ.

scholarly journals Analysis Control Of Inventory Of Non Subsidy Fertilizer Merchandise With Economic Order Quantity (EOQ) Method In CV. Dohar Agro Mandiri

2022 ◽  
Vol 3 (1) ◽  
Author(s):  
Ferza Dwianda Afrimarsa ◽  
Neri Susanti ◽  
Tito Irwanto
Keyword(s):  
Mathematical Model ◽  
Inventory Control ◽  
Optimal Level ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Inventory Cost ◽  
Inventory Costs ◽  
Total Inventory ◽  
The Business Cycle

Economic Order Quantity (EOQ) is a mathematical model that determines the number of items that must be ordered to meet the projected demand, with minimized inventory costs. The types of costs to run the business cycle are storage costs and ordering costs. The purpose of this research is to analyze "Analysis of Non-Subsidized Fertilizer Inventory Control with Economic Order Quantity (EOQ) Method at CV. Dohar Agro Mandiri. The total inventory obtained using the EOQ method is 11,003 with a purchase frequency of 3 times. Using the EOQ method the company must reorder when the merchandise inventory is 1,015 zak, with the EOQ method the maximum inventory that the company must maintain is 12,018 per day. The total inventory cost of fertilizer merchandise inventory is 24,648. In other words, inventory control using the EOQ method can help companies achieve an optimal level of inventory ordering and ordering frequency.

scholarly journals PENGENDALIAN PERSEDIAAN BAHAN BAKU DALAM PROSES PRODUKSI DENGAN MENGGUNAKAN METODE ECONOMIC ORDER QUANTITY (EOQ)

2019 ◽  
Vol 1 (2) ◽  
pp. 415-423
Author(s):  
Elia Rahayu R ◽  
Nor Norisanti ◽  
Acep Samsudin
Keyword(s):  
Raw Materials ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Analysis Method ◽  
Inventory Cost ◽  
Total Inventory ◽  
The Difference ◽  
Quantitative Descriptive

The purpose of this study is to control the supply of raw materials using the Economic Order Quantity (EOQ) method in Tahu Nugraha Jaya Sukabumi UKM. The data analysis method used is quantitative descriptive to describe and describe the data to be examined and then processed using EOQ. This study uses the EOQ method to determine the total inventory cost. The data needed in this study are the number of purchases of raw materials, the amount of use of raw materials, storage costs, and ordering costs. The results of this study indicate that by applying the EOQ method can further optimize the supply of raw materials by minimizing raw materials with increased inventory. With the application of the Economic Order Quantity (EOQ) method it shows more efficient than conventional methods of the company. Conclusions, seen from the difference in the TIC of the two methods, the more efficient method is the Economic Order Quantity (EOQ) method that is equal to 244,392.94 while the calculation used by the company is 374,325. so that it can be obtained that there is a difference between the Company TIC and the EIC method TIC. Keywords: Raw Material Inventory, Production Process

ANALISIS PENGENDALIAN PERSEDIAAN BAHAN BAKU DENGAN METODE ECONOMIC ORDER QUANTITY PADA CV. DIKA JOK JENGGAWAH

2019 ◽  
Vol 18 (2) ◽  
Author(s):  
Siti Husnul Hotima ◽  
Dini Hayati
Keyword(s):  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Inventory Cost ◽  
Safety Stock ◽  
Reorder Point ◽  
Total Inventory ◽  
Point Total

Tujuan yang diharapkan dari penelitian ini adalah ingin menganalisis persediaan bahan baku optimal yang dibutuhkan dengan menggunakan metode Economic Order Quantity (EOQ), menganalisis berapa besar persediaan pengaman (Safety stock), menganalisis kapan waktu yang tepat untuk melakukan pemesanan kembali (reorder point), menganalisis total persediaan bahan baku atau Total Inventory Cost (TIC). Jenis penelitian yang digunakan adalah kuantitatif deskriptif. Teknik pengumpulan data yang digunakan dalam penelitian ini adalah wawancara, observasi, dan dokumentasi. Penelitian dan hasil perhitungan yang dilakukan menunjukkan bahwa persediaan bahan baku setiap tahunnya tidak stabil. Bahan baku yang dibutuhkan oleh perusahaan apabila dihitung menggunakan metode Economic Order Quantity (EOQ) pada tahun 2016 adalah sebesar 11,52 m3 dengan frekuensi pembelian 6 kali per periode (1 tahun). Tahun 2017 sebesar 9,90 m3 dengan frekuensi pembelian 6 kali per periode (1 tahun). Persediaan pengaman (safety stock) pada tahun 2016 adalah sebesar 16,48 m3. Pada tahun 2017 sebesar 11,25 m3. Titik pemesanan kembali (reorder point) pada tahun 2016 adalah sebesar 17,18 m3. Pada tahun 2017 sebesar 13,1 m3. Total biaya persediaan bahan baku yang dihitung menurut Economic Order Point (EOQ) lebih sedikit dibandingkan dengan yang dikeluarkan oleh perusahaan, maka ada penghematan biaya persediaan. Pada tahun 2016 sebesar Rp.110.499.402 dan pada tahun 2017 sebesar Rp.81.655.306. Kata Kunci: Economic Order Quantity (EOQ), Persediaan Pengaman (Safety Stock), Titik Pemesanan Kembali (Reorder Point), Total Biaya Persediaan atau Total Inventory Cost (TIC).

scholarly journals Analisis Manajemen Persediaan Ikan Segar di Depo Ikan Segar Kota Surakarta

2019 ◽  
Vol 2 (2) ◽  
pp. 118
Author(s):  
Diasicha Valensio Violenta ◽  
Sri Marwanti ◽  
RR Aulia Qonita
Keyword(s):  
Random Sampling ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Inventory Cost ◽  
Safety Stock ◽  
Purposive Sampling ◽  
Fresh Fish ◽  
Reorder Point ◽  
Total Inventory

ABSTRACTThis study aims to determine the quantity and frequency of ordering fresh fish, total inventory cost, safety stock and reorder points based on the method Economic Order Quantity  the exactand knowing the ratio of total costs of fresh fish inventory if the traders at the Depo Ikan Segar use their own policies using the method Economic Order Quantity. The basic method used in this research is descriptive method. The location was determined by purposive sampling and selected the Depo Ikan Segar in Surakarta City because it was the whole sale center for fresh fish in Surakarta City. Determination of the sample using random sampling technique by proporsive sampling. Data analysis methods used are: (1) optimal quantity and ordering frequency (2) total inventory costs (3) calculation of safety stock and reorder points. The results of the analysis show that the calculation of the quantity, frequency of ordering fresh fish, total inventory cost, safety stock and reorder point will be optimal if using the method Economic Order Quantity compared to the merchant policy at Depo Ikan Segar.Keywords: Economic Order Quantity, Optimal Ordering Frequency, Reorder Point, Safety Stock, Total Inventory Cost INTISARIPenelitian ini bertujuan untuk mengetahui besar kuantitas dan frekuensi pemesanan ikan segar, total biaya persediaan, safety stock dan reorder point yang tepat berdasarkan metode Economic Order Quantity, serta mengetahui perbandingan total biaya persediaan ikan segar jika pedagang di Depo Ikan Segar menggunakan kebijakannya sendiri dengan menggunakan metode Economic Order Quantity. Metode dasar yang digunakan dalam penelitian ini adalah metode deskriptif. Penentuan lokasi secara purposive sampling dan terpilih Depo Ikan Segar Kota Surakarta karena merupakan pusat grosir ikan segar di Kota Surakarta. Penentuan sampel menggunakan teknik random sampling dengan cara proporsive sampling. Metode analisis data yang digunakan adalah : (1) kuantitas dan frekuensi pemesanan optimal (2) total biaya persediaan (3) perhitungan safety stock dan reorder point. Hasil analisis menunjukkan bahwa perhitungan kuantitas, frekuensi pemesanan, total biaya persediaan, safety stock dan reorder point akan optimal apabila menggunakan metode Economic Order Quantity dibanding dengan kebijakan pedagang di Depo Ikan Segar.Kata kunci:  Economic Order Quantity, Frekuensi Pemesanan Optimal, Persediaan Pengaman, Titik Pemesanan Kembali, Total Biaya Persediaan

scholarly journals Manajemen Persediaan Tepung Terigu dengan Metode Economic Order Quantity (EOQ) pada Perusahaan Roti Nikki Echo Payakumbuh

2018 ◽  
Vol 1 (1) ◽  
pp. 21-27
Author(s):  
Desi Rahma Yani ◽  
Mega Amelia Putri ◽  
John Nefri
Keyword(s):  
Inventory Management ◽  
Production Cost ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Inventory Cost ◽  
Company Policy ◽  
Total Inventory ◽  
A Company

Inventory management has an important role in a company because inventory management can decrease production cost. Economic order quantity using to minimize the production cost. Inventory management of flour in bread company Nikki Echo not been seen clearly prove by  so many booking amount. It can giving addition of cost. The purpose of this research is (1) Analyzing optimal flour stock by using EOQ method in bread company Nikki Echo, (2) Analyzing reorder point raw material inventory by using EOQ method in bread company Nikki Echo, (3) Analyzing total raw material inventory cost by using EOQ method in bread company Nikki Echo. This research be held from February 20 until April 19 2018 in bread company Nikki Echo, Tanjung Pauh, Payakumbuh city, West Sumatera province. Flour stock by using EOQ method as much 17.394 kg it means the amount greater than company policy. That amount increase 79,6% from the amount set by company. Frequency of booking less than company policy that is 7 times booking. Amount of reorder by using EOQ method is 10.251 kg with the inventory lead time for 3 days. Total inventory cost by using EOQ method as many Rp 11.445.513. This value small than total inventory cost issued by company policy. Decreasing cost amount 98% from company policy. That cause by ordering amount reduced 33 times or same with 82,5% from the amount before

scholarly journals ANALISIS PENGENDALIAN PERSEDIAAN DALAM HUBUNGANNYA DENGAN EFISIENSI BIAYA DI PT. HITEK INDO MULIA

2018 ◽  
Author(s):  
Decky Antony Kifta
Keyword(s):  
Cost Saving ◽  
Inventory Control ◽  
Cost Efficiency ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Inventory Cost ◽  
Analysis Tools ◽  
Total Inventory ◽  
The Cost

This study is intended to formalize how to control goods inventory in relation with the cost efficiency of inventory at PT Hitek Indo Mulia. The company, PT Hitek Indo Mulia, is the venue of the research and source of data for the researcher to write this jurnal. The inventory observed in this research is Radiography films as the main inventory of the company and the analysis tools used in this inventory control is related to cost eficient and forecasting i.e. Economic Order Quantity (EOQ), Re-order Point (ROP), and Total Inventory Cost (TIC). From the calculation it was shown that there was cost saving upto Rp. 1.704.799,24 and with 6 (six) times of re-order point. This is to give economical guidance to the company to use this calculation or measures, and they shall not depend on guessing or intuation. By implementing this theory we will not see that radiography films (grafts) are piled up in the store but they are continuously used up and give value to the company.

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