Inventory Management with EOQ Method at “Nitra Jaya” Fashion-Making Company in Badung



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Submitted May 11, 2022
Published Jun 29, 2022
10.24018/ejbmr.2022.7.3.1444

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Inventory management is an activity carried out by a company that is needed in making decisions, so that material needs for the needs of company activities both production and sales can be fulfilled optimally, with the smallest possible risk. Over-inventory is a waste because it causes storage and maintenance loads that are too high during storage in the warehouse. This research was conducted at Nitra Jaya which aims to determine the proper inventory management of the management system for Nitra Jaya using the EOQ (Economic Order Quantity) method. This study uses quantitative data and qualitative data obtained by conducting interviews with the company and observing the object under study. The results showed that Nitra Jaya inventory management was still not efficient. By using the conventionally applied method in 2019, the total inventory cost incurred was IDR 27,150,000. If Nitra Jaya uses the EOQ (Economic Order Quantity) method in 2019, the total inventory cost incurred is IDR 14.247.886, and the company can save IDR 12.902.114 (47.5%) The implication of this research is that it is expected to be able to provide advice to the owner of the Nitra Jaya to review the total cost of inventory more efficiently through the optimal quantity and frequency of purchasing raw materials, the company should apply the EOQ method in carrying out inventory management.

Keywords: EOQ, Inventory Management

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