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Cindra Febriani
Khafidz Rosyidi

Each company has different ways to manage raw material inventory. Starting from the number of units of raw materials, time of use, as well as the amount of costs to purchase raw materials. The amount of raw material inventory that is minimal or too big is feared will be an obstacle of a company's productivity, so it needs a good raw material management pattern for the company. Policies in inventory management need to be formulated appropriately so as to achieve the objectives expected by the company. There are several methods to control inventory levels, including the Economic Order Quantity (EOQ) model. The EOQ method is used to determine the optimal amount of goods in one period by minimizing total inventory cost. The inventory cost consists of setup cost and holding cost. Some of the advantages of implementing EOQ policies in inventory management are that investments embedded in inventories can be kept to a minimum and the number of raw material orders adjusted for consumption needs. UD. Plastics is one of the middle-level industries that manage plastic waste located in Tejowangi Village Purwosari District that develops local resource potentials. Re-Order Point, according to EOQ method is 7,971 kg, whereas according to UD policy. Plastic Purwosari no return order. The frequency of optimum raw material feeding according to EOQ method is 4 times in one month, while policy according to UD. Purwosari +-plastic is 15 times in 1 month. Total inventory cost is optimal for 1 year according to EOQ method of Rp. 568,419.41, whereas according to UD policy. Plastic Purwosari Rp. 770.631,22. So there is a difference of Rp. 202.211,81. Companies need to re-examine the methods of control applied so far, because based on the results of processing by methods used by researchers, Total inventory cost can still be minimized. By using EOQ method in raw material procurement policy, the company will get a minimum quantity of raw material purchasing compared to the previous company policy.


Keywords: Economic Order Quantity Inventory Management Raw Material Inventory
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