EFFICIENCY OF MATERIAL INVENTORY USING ECONOMIC ORDER QUANTITY (EOQ) CALCULATION TECHNIQUES
Kencana Verawati *), Winoto Hadi, Vivian Karim Ladesi, Siti Sahara, Yuli Purnama Putra, Egy Andarwati

University of Jakarta,
Civil Engineering, Transportation,
Jalan Rawamangun Muka, Pulogadung, Jakarta timur, Daerah Khusus Ibukota Jakarta 13220

kencanaverawati[at]unj.ac.id

Abstract

The inventory management system influences the smooth running of production. The amount of raw material availability is significant in production process. Timely delivery of materials to end users needs to be appropriately managed so that there are no losses in production due to storing excess raw materials. This study uses the Economic Order Quantity (EOQ) technique and a minimum-maximum raw materials. The intended raw material is the material needed to produce offshore oil and gas, which must be stored in a warehouse. Based on calculations with EOQ techniques and a minimum-maximum quantity provides an economical amount of material at the time of order, and the company can determine the optimal amount of storage of elements in the warehouse. Based on calculations, the movement of material to be ordered will be optimal with the minimum-maximum amount of elements stored in warehouses can also facilitate the company in monitoring material inventory. Example is STUD BOLT & NUTS (FULL THREAD), 1 1/2 "X10" L, (ICN 08-425-0297-1), safety stock = minimum quantity of 111 ea, reorder quantity ( ROP) is 162 ea, the maximum amount is 192 ea, EOQ is 81 ea.

Keywords: The inventory management system, Material, EOQ technique

Topic: Industry Engineering