Paper Raw Material Inventory Management at Swadaya Mandiri Company Using Economic Order Quantity (EOQ)
Author : Rorim Panday, and Dilla Agista Ningrum
Abstract :
One of the most significant things in representing the performance of a company is the ideal inventory. This research is a quantitative research that looks at how Swadaya Mandiri Company applies the Economic Order Quantity or EOQ method to control raw material supplies. Swadaya Mandiri Company is a cardboard printing manufacturing company. Based on the research, the results show that in 2022, the best quantity of paper raw material inventory using the EOQ approach is 360 reams with a frequency of 8 times, a safety stock of 20 reams, and a reordering point (ROP) when the inventory in the warehouse remains 60 reams with a total annual cost of IDR. 3,345,000. Compared to the company's current policy, using the EOQ approach to paper raw material inventory is more efficient.
Keywords :
Inventory, EOQ, efficiency
