A Optimizing Raw Material Procurement EOQ Approach for Reducing Overstock
Mengoptimalkan Pengadaan Bahan Baku dengan Pendekatan EOQ untuk Mengurangi Persediaan yang Berlebih
-
(1) * Mike Vidiasari
Indonesia
(2) Ribangun Bamban Jakaria Universitas Muhammadiyah Sidoarjo
Indonesia
(*) Corresponding Author
Abstract
This research employs the Economic Order Quantity (EOQ) method to optimize procurement practices for welding wire in boiler manufacturing. With a focus on reducing storage and inventory costs, the study aims to determine the optimal order quantity. Findings reveal that the calculated total inventory cost using the EOQ method significantly reduces compared to the company's existing policy. The optimal order quantity of 407 boxes, purchased four times per year, coupled with a safety stock of 181 boxes, ensures efficient procurement management. This research underscores the importance of implementing quantitative analysis techniques in procurement strategies to enhance cost-effectiveness and operational efficiency in manufacturing industries.
Highlight :
- The study determines the optimal order quantity of K71T welding wire, reducing storage and inventory costs.
- The Economic Order Quantity (EOQ) method is applied, resulting in a total inventory cost of Rp. 89,060,000,- compared to the company policy of Rp. 290,840,000,-.
- The findings can be used as a reference for other manufacturing companies facing similar procurement challenges to optimize their inventory management and reduce costs.
Keywords: welding wire, optimal order quantity, inventory management, procurement challenges, manufacturing companies
Downloads
References
J. Juniarti, T. Atty Tri, and L. Chindy Asitha, “Metode Pengendalian Persediaan dengan MRP,” Jawa Tengah, Indonesia, 2021, pp. 49-50.
F. Putra, U. Ferry Utama, A. Maksum, and H. Apid, “Analisis Penerapan Manajemen Persediaan Bahan Baku Arm Rear Brake Kyea dengan Metode EOQ,” J. Serambi Engineering, vol. 7, no. 1, pp. 2561-2570.
M. Y. Syafei, I. Andriana, and F. Firman, “Analisis Manajemen Pengadaan Material Konstruksi Di PT. Takenaka Indonesia,” J. Research and Application of Industrial System, vol. 7, no. 2.
M. S. Ghozali and R. Vikaliana Resista, “Pengelolaan Persediaan Kaca Film Menggunakan Metode Economic Order Quantity,” Terapan Informatika Nusantara, vol. 4, no. 2, pp. 152-159.
S. Laoli, K. Zai Kurniawan Sarototonafo, and N. Kristiani Lase, “Penerapan Metode Economic Order Quantity (EOQ), Reorder Point (ROP), dan Safety Stock (SS) Dalam Mengelola Manajemen Persediaan di Grand Katika Gunung Sitoli,” vol. 10, no. 4, pp. 1269-1273.
P. Roito Sagala, Y. Rumapea, and A. Prima Silalahi, “Pengendalian Persediaan Gas dengan Metode Economic Order Quantity untuk Menentukan Safety Stock dan Reorder Point,” J. Ilmiah Sistem Informasi, vol. 3, no. 2, pp. 33-39.
N. L. Rachmawati and M. Lentari Mutiara, “Penerapan Metode Min-Max untuk Minimasi Stockout dan Overstock Persediaan Bahan Baku,” J. Intech Teknik Industri, vol. 8, no. 2, pp. 143-148.
M. Z. Al Fariz and I. Yuwono Istantyo, “Analisis Pengendalian Persediaan Oli Mesin Dengan Menggunakan Metode Economic Order Quantity (Studi Kasus: Toko Fifa Motor),” J. Student Research (JRS), vol. 1, no. 4, pp. 404-414.
L. Chamdiyah, D. Zuhroh, and T. Wasesa, “Raw Material Inventory Planning and Control To Achieve Inventory Cost Efficiency Case Study At PT. 'X' In Surabaya,” J. Mahasiswa Manajemen dan Akuntansi, vol. 2, no. 2, pp. 116-127.
M. Tampubolon, "Manajemen Operasional", cet. 1, Penerbit Ghalia Indonesia, 2004.
S. Safitri, M. Rahmansyah M. Miftah, and R. B. Jakaria Ribangun, “Efisiensi Bahan Dalam Pengadaan Persediaan Bahan Baku dengan Metode Economic Order Quantity (EOQ),” J. Ilmiah Research Student, vol. 1, no. 3, pp. 837-845.
Copyright (c) 2024 Mike Vidiasari, Ribangun Bamban Jakaria
This work is licensed under a Creative Commons Attribution 4.0 International License.
