Abstract:
This article discusses the control of raw material inventory to determine the optimal
order quantity per order, in order to be able to minimize the total inventory cost.
The method used in this article is the EOQ multi-item model and min-max stock
method based on data on seven types of raw materials for making electrical panels
consisting of the amount of inventory of each item, the number of requests for each
item, the cost of ordering goods, and the cost of storing goods. As a result, the total
inventory cost generated using the EOQ multi-item model with optimal Q is smaller
when compared to the min-max stock method and policies made by the company.
Therefore, by using the EOQ multi-item model with optimal Q, companies can
meet raw material demand and can make savings on the total inventory cost of raw
material.
