IMPLEMENTATION OF RAW MATERIAL INVENTORY CONTROL USING THE ECONOMIC ORDER QUANTITY (EOQ) METHOD AT UD PUTRA TANI

Abstract

Putra Tani Rice Milling during non-harvest season experiences a shortage of rice raw materials in the production process because the supply of raw materials is delayed. The uncertainty of the amount of demand for merchandise (rice) at any time means that another problem that arises is not knowing when the company should repurchase (reorder point) the raw material of rice. The objectives of this study are (1) To determine the inventory of raw materials of rice at UD. Putra Tani in 2022; (2) To determine the application of the EOQ method in controlling the inventory of raw materials of rice at UD. Putra Tani in 2022; (3) To determine the position of safety stock at UD. Putra Tani in 2022. This study uses the EOQ method. The results of the study show the amount of purchases of raw materials of rice according to UD. Putra Tani's policy, namely an average of 19,024 kg/order, 183 orders, and a TIC of Rp. 129,882,357-, each year. The results of the rationalization of the application of the EOQ method, UD. Putra Tani can purchase raw materials of 37,000 kg with 95 orders in one year. While the TIC after UD. Putra Tani if ​​using the EOQ method is Rp. 67,751,617-, each year. The position of safety stock, UD. Putra Tani in 2022 is 41,426 kg. While the number of reorder points is 62,148 kg.