Design of a Raw Material Inventory Control System for the Tempe Industry Using the Economic Order Quantity (EOQ) and Quantity Discount Approach
DOI:
https://doi.org/10.35194/jmtsi.v10i2.5839Keywords:
Economic order quantity, quantity discounts, safety stock, reorder point, Inventory controlAbstract
Planning of raw material inventory control is essential for reducing operational waste. This study aims to design a soybean raw material inventory control system at Tempe Galang Small Enterprise to minimize the potential for overstocking and stockouts. The approach used is the Economic Order Quantity (EOQ) method, taking into account quantity discounts, safety stock determination, and reorder point calculations. The research data was obtained through interviews with the SME owner and direct observation, covering demand history, order costs, storage costs, and delivery waiting times. The results show that the optimal order quantity is 69 kg per order, thereby reducing the order frequency from 141 times to 80 times per period. The safety stock level is set at 24 kg/day with a reorder point of 40 kg. The application of this method resulted in inventory cost efficiency of IDR 5,109,580 or about 8% of the previous total cost, mainly through a reduction in order frequency and the utilization of quantity discounts. In addition, the design of a semi-manual control system based on Microsoft Excel allows business actors to plan inventory independently in a more effective and efficient manner.
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