Analysis Of Raw Material Ordering With Economic Order Quantity (EOQ) Method
H Irmayanti
Computer Engineering
Faculty of Engineering and Computer Science
Universitas Komputer Indonesia
Jalan Dipatiukur No. 112-116, Bandung, Indonesia
haniirmayanti[at]email.unikom.ac.id
Abstract
The objective of this study is to create a recommendation many time and how much purchase of raw material each period. Method which used is Economic Order Quantity (EOQ). This method is one of many method for supply management, to avoid shortage or surplus raw material which use for production. Result of this study is the ideal of raw material amount which use for production. Those result is gain from calculation ordering cost and storage cost, where ordering cost is cost per one order and storage cost is cost for each unit material per period, other than that this method also determine a forecasting based on amount of order which will be produced. Surely, result of forecasting is very helpful the company to order raw material which corresponding to production, so that can decrease loss of ordering cost and storage cost due to the excess purchase of these raw materials.
Keywords: EOQ; raw materials; ordering cost; storage cost
Topic: Informatic and Information System