Economic order quantity - a tool for inventory management - a case study

Author(s):  
Vivek Madhav Rao ◽  
Dharamvir Mangal
JUMINTEN ◽  
2020 ◽  
Vol 1 (4) ◽  
pp. 163-172
Author(s):  
Vify Elviana ◽  
Akmal Suryadi

Persediaan merupakan aset perusahaan yang memiliki peran penting dalam operasi bisnis, sehingga perusahaan penting untuk melakukan manajemen persediaan yang baik, artinya perusahaan harus mampu mengantisipasi kendala maupun tantangan yang ada dalam pengelolahan persediaan untuk meminimalisasi total biaya yang harus dikeluarkan oleh perusahaan. Permasalahan yang timbul pada persediaan bahan baku di PT XYZ adalah perusahaan melakukan perencanaan dan pengendalian bahan baku hanya berdasarkan pada pengalaman-pengalaman sebelumnya dan tidak berdasarkan pada metode yang sudah baku. Oleh karena itu pembelian bahan baku tidak sesuai dengan permintaan konsumen. Hal tersebut sering menyebabkan terjadinya kelebihan maupun kekurangan stok bahan baku. Kesalahan dalam penentuan besarnya investasi dalam persediaan akan mengurangi keuntungan perusahaan. Adanya persediaan bahan baku yang terlalu besar, akan menambah beban biaya pemeliharaan dan penyimpanan dalam gudang, serta kemungkinan terjadinya penurunan kualitas bahan baku yang dapat menyebabkan berkurangnya keuntungan perusahaan. Namun jika persediaan bahan baku terlalu sedikit maka akan berakibat pada terhambatnya proses produksi, sehingga tidak terpenuhinya permintaan konsumen. Hasil penelitian ini dapat menyimpulkan bahwa perencanaan kebutuhan bahan baku dengan metode perusahaan didapatkan total cost sebesar Rp 1.796.762.429,-, sedangkan metode Material Requirements Planning (MRP) didapatkan total cost sebesar Rp 1.576.011.801,-. Maka dapat disimpulkan telah terjadi penurunan total cost seluruh bahan baku sebesar 12,28%. Hal ini membuktikan bahwa metode Material Requirements Planning (MRP) lebih efisien daripada metode PT. XYZ. Oleh karena itu untuk mendapatkan total cost yang minimum, metode Material Requirements Planning (MRP) diterapkan pada periode Februari-Juni 2020 sehingga didapatkan total cost sebesar Rp 1.576.011.801,-. Kata Kunci:         Material Requirements Planning (MRP), PT XYZ, Pail Cat, Economic Order Quantity (EOQ), Period Order Quantity (POQ), Lot For Lot (LFL). ABSTRACT                     Inventory is a company asset that has an important role in business operations, so the company is important to conduct good inventory management, meaning that the company must be able to anticipate obstacles and challenges that exist in managing inventory to minimize the total cost to be incurred by the company.The problem that arises in the supply of raw materials in PT XYZ is that the company plans and controls raw materials based only on previous experiences and not based on established methods. Therefore, the purchase of raw materials is not in accordance with consumer demand. This often leads to excess or shortage of raw material stock. Mistakes in determining the amount of investment in inventories will reduce company profits. The availability of raw materials that are too large, will add to the burden of maintenance and storage costs in the warehouse, as well as the possibility of a decline in the quality of raw materials that can lead to reduced company profits. However, if the supply of raw materials is too little, it will result in obstruction of the production process, so that consumer demand is not fulfilled. The results of this study can conclude that the planning of raw material needs by the company method obtained a total cost of Rp 1,796,762,429, - while the Material Requirements Planning (MRP) method obtained a total cost of Rp 1,576,011,801, -. Then it can be concluded that there has been a decrease in the total cost of all raw materials by 12.28%. This proves that the Material Requirements Planning (MRP) method is more efficient than the PT. XYZ. Therefore, to get the minimum total cost, the Material Requirements Planning (MRP) method was applied in the February-June 2020 period so that a total cost of Rp 1,576,011,801 was obtained.   KeyWords: Material Requirements Planning (MRP), PT XYZ, Pail Cat, Economic Order Quantity (EOQ), Period Order Quantity (POQ), Lot for Lot (LFL).


2018 ◽  
Vol 32 (2) ◽  
pp. 126
Author(s):  
Risa Rahmawati ◽  
Endang Siti Rahayu ◽  
Susi Wuri Ani

<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>


Author(s):  
Dini Fitriani

The Maju Mapan Company is a company engaged in trading, whose main activity is selling fertilizer types. In carrying out sales activities, it is closely related to merchandise inventory which is an important component that must be available for the smooth running of the sales process. This study aims to determine the quantity of economical fertilizer merchandise inventory using the Economic Order Quantity method. From the results of calculations that have been done by comparing the current trading goods inventory management policy in the company with the EOQ method in the procurement of merchandise, it can be concluded that by using the EOQ method, the quantity of EOQ orders is higher than the order according to the company, but if the company uses the method EOQ, the company will save an inventory cost of Rp. 48,546,480


2018 ◽  
Vol 44 (3) ◽  
pp. 2653-2663 ◽  
Author(s):  
Amir Hossein Nobil ◽  
Amir Hosein Afshar Sedigh ◽  
Leopoldo Eduardo Cárdenas-Barrón

2018 ◽  
Vol 1 (1) ◽  
pp. 21-27
Author(s):  
Desi Rahma Yani ◽  
Mega Amelia Putri ◽  
John Nefri

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


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