Application of Economic Production Quantity Method in Controlling the Production Level of Crude Palm Oil at PT. Perkebunan Nusantara IV Medan City

PT. Perkebunan Nusantara IV is a subsidiary of an Indonesian State-Owned Enterprise engaged in oil palm and tea plantations. Crude Palm Oil as a derivative product of palm oil is one of Indonesia's mainstay export commodities. Inventory control at PT. Perkebunan Nusantara IV is a complicated matter. Therefore, one method that can be used to control raw materials is the EPQ (Economic Production Quantity) method where the EPQ method can determine the optimum production level, optimum production frequency, optimum cycle time to minimize inventory costs. By using the EPQ method, the optimum production level of Crude Palm Oil is 30,745,207,190 kg with the optimum time interval of 20 days in each production cycle and the company can save production costs of 3.94% for each production cycle.