Analysis of Inventory Control Using Economic Order Quantity Model-A Case Study in PT. Wijaya Agung Hutama

Abstract

As one of the most critical issues that arise in industries, inventory control is important for operations in the industry. As one of the small and medium enterprises industries in Indonesia, PT. Wijaya Agung Hutama is able to apply EOQ to solve their problem regarding inventory control of raw materials, especially EMAL 270N that are used to make the company’s hand soap product. This paper examines the phenomenon in the company based on its historical data from January 2020 until December 2020 and forecasts the demand of EMAL 270N for the next 12 months of operation. By using the EOQ method for controlling inventory, this company can minimize the inventory cost by 88.21% in 2020 and predicted to be reduced by 81.66% in 2021 and determine the most efficient order quantity of each purchase.