Cost Efficiency Analysis of Crushed Stone Raw Material Inventory 10-20 Using EOQ Model Approach

Analisis Efisiensi Biaya Persediaan Bahan Baku Batu Pecah 10-20 Melalui Pendekatan Model EOQ

Authors

  • Achmad Rizki Dwi Nur Amrin Universitas Muhammadiyah Sidoarjo
  • Tedjo Sukmono Universitas Muhammadiyah Sidoarjo

DOI:

https://doi.org/10.21070/pels.v10i1.3079

Keywords:

Raw Material Inventory, Eoq, Inventory Control, Cost Efficiency

Abstract

General Background Ineffective control of raw material inventories can significantly increase operational costs for manufacturing companies. Specific Background This study analyzes the control of 10-20 broken stone raw materials at PT. XYZ using the Economic Order Quantity (EOQ) method combined with linear regression forecasting. Knowledge Gap Existing inventory management lacks optimal order structuring, leading to suboptimal purchasing frequencies and elevated inventory expenses. Aims This study aims to determine the economical order quantity and evaluate cost efficiency improvements for raw material inventories. Results Findings indicate an annual raw material requirement of 37,883 tons, an optimal order quantity of 763 tons per order with a purchase frequency of 50 times per year, and a total inventory cost reduction from Rp181.200.563 to Rp25.084.238. Novelty This work establishes an integrated probabilistic EOQ and linear regression framework tailored for ready-mix concrete aggregate supply chain management. Implications Implementing the EOQ model successfully improves inventory management efficiency, achieving an 86.23% cost saving.

KEY FINDINGS HIGHLIGHTS

  1. Applying the Economic Order Quantity model reduces total inventory costs from Rp181.200.563 to Rp25.084.238.

  2. The optimal order quantity is determined at 763 tons per order with a purchasing frequency of 50 times annually.

  3. The proposed inventory control approach successfully achieves an impressive cost efficiency savings of 86.23%.

Keywords Raw Material Inventory, Eoq, Inventory Control, Cost Efficiency

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Published

2026-10-12

How to Cite

[1]
A. R. D. N. Amrin and T. Sukmono, “Cost Efficiency Analysis of Crushed Stone Raw Material Inventory 10-20 Using EOQ Model Approach: Analisis Efisiensi Biaya Persediaan Bahan Baku Batu Pecah 10-20 Melalui Pendekatan Model EOQ”, PELS, vol. 10, no. 1, pp. 339–348, Oct. 2026.

Issue

Vol. 10 No. 1 (2026): Proceedings of the 9th Seminar Nasional Sains 2026

Section

Industrial Engineering

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Copyright (c) 2026 Achmad Rizki Dwi Nur Amrin, Tedjo Sukmono

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