Analysis On Raw Material Inventory Planning With Method Of Economic Order Quantity (EOQ) On CV. D & D Handicraft Collections, Yogyakarta

Abstract

D & D Handicraft Collections Bag Company is a company that works in the industrial fields of making bags only for women. The research was focused on the inventory of raw materials with three variables which are the main raw materials. The problem that happens is that the company has not done an analysis on raw materials planning to minimize the inventory cost. The company is still doing raw materials planning base on intuition and never a shortage of raw materials that interfere with the production process . The purpose of this study is in addition to minimizing costs , is also looking for an economical raw material ordering , order frequency , safety stock and reorder point. One of the approaches that could help the company so it can minimize the inventory cost is with an analysis using the method of Economic Order Quantity (EOQ). The order quantity (Q) before doing the analysis on raw materials nylon thread, cowhide, and rattan are 4882kg, 3923kg, and 65 sheets. The purchase frequency (F) for nylon thread, cowhide, and rattan are 6 times, 4 times, and 6 times. The total inventory cost is Rp.5.083.865, 78. The analysis is done to minimize the inventory cost. Based on the EOQ analysis result obtained the quantity of economic order for nylon thread, cowhide, and rattan are 1666kg, 1075fit, and 157 sheets. As for purchase frequency in one period from nylon thread are 18 times, cowhide 15 times, and rattan 2 times. The result of the analysis also saves the inventory of cost as big as 41, 96% which is Rp.2.950.636, 15