Inventory Management Analysis Using the Economic Order Quantity (EOQ), Reorder Point, And Min-Max Stock Method at PT TTI

ABSTRACT : This study aims to analyze inventory management by applying the Economic Order Quantity (EOQ), Reorder Point (ROP), and Min–Max Stock methods to determine the optimal order quantity, reorder timing, and annual inventory cost estimation. The data used include an annual demand of 456 units, ordering cost of Rp255,529 per order, carrying cost of Rp110,638 per unit per year, daily usage of 2 units, and a 3-day lead time. The findings indicate that the optimal order quantity is 46 units per order, with a purchasing frequency of 10 times per year. The reorder point is set at 26 units, signaling the inventory level at which a replenishment order must be placed. The Min–Max analysis establishes a minimum inventory level of 26 units and a maximum of 72 units. Comparison of total inventory costs shows that the current company method results in total annual costs of Rp5,168,470, while the EOQ-based method yields a lower cost of Rp5,099,964. Thus, the application of EOQ–ROP–Min–Max provides annual savings of Rp68,506 and leads to a more efficient inventory control system by reducing both stock-out risk and excess inventory.