| dc.description.abstract | One of the problems that often occurs in the purchase of raw materials for the home industry is how to stock up on the right raw materials so as not to cause costs that are embedded in raw materials not to be excessive and not to interfere with the smooth production process. By implementing an inventory cost management policy can be reduced to a minimum, minimizing inventory costs can be reduced using an "Economic Order Quantity" (EOQ) analysis.
This study uses descriptive quantitative methods by means of observations and interviews at the Tempe Home Industry Mr. Dono then compares the Home Industry policy with the Economic Order Quantity (EOQ) method so that a conclusion can be drawn.
The results of this study indicate that the purchase of raw materials applied by the Home Industry is considered inefficient, because the policies of the Home Industry result in a fairly large expenditure of Rp. 2,977,286, while with the application of the Economic Order Quantity (EOQ) method, Home Industry spends Rp. 709,927.96. By applying the Economic Order Quantity (EOQ) method, Home Industry can save Rp. 2,267,358.04. These cost savings are obtained from minimizing the total cost of inventory, where using the Economic Order Quantity (EOQ) method will optimize the purchase quantity to be larger and the ordering frequency to be lower than the policy applied, resulting in a savings in ordering costs. Excess costs can be streamlined by ordering raw materials according to production needs. | en_US |
