Evaluation of Raw Material Inventory in Socks Home Industry Using Economic Order Quantity (EOQ)

Authors

  • Haridhsah Hilmi Septiawan
  • Rorim Panday

DOI:

https://doi.org/10.47059/revistageintec.v11i4.2484

Abstract

This study aims to evaluate purchasing raw materials and the Home Industry Socks by using the Economic Order Quantity (EOQ) method and the compare to the company's actual method. And to find out whether the EOQ method is effective to be applied to the company. The data used in this study are in the form of notes, reports, and company documentation for the period 2017, 2018, and 2019 provided by the owner through observation, interview, documentation, and literature study. Meanwhile, the usage data, raw material prices, and raw material purchase data are obtained from company records. The analysis technique in this study used EOQ formula, standard deviation, safety stock, Total Holding Cost, Total Ordering Cost, and Total Inventory Cost. The result of this research is that EOQ method is effective to be applied to socks home industry companies to control inventory more efficiently because it can minimize inventory costs.

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Published

2021-08-16

Issue

Section

Articles