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  • ISSN[Online] : 2643-9875  ||  ISSN[Print] : 2643-9840

VOLUME 06 ISSUE 05 MAY 2023

Cost Efficiency Through the use of the EOQ Method
Elfreda Aplonia Lau
Faculty of Economics and Business, University of 17 Agustus 1945 Samarinda
DOI : https://doi.org/10.47191/ijmra/v6-i5-21

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ABSTRACT:

This study aims to analyze and show how to calculate EOQ and prove that the use of the EOQ method can make inventory costs efficient because the number of purchases is not excessive and not lacking, the frequency of purchases and the exact time of reordering.
The theory underlying this research is the theory of inventory management, especially the EOQ Single Item Method. The analysis technique used is descriptive analysis using the EOQ Single Item method to calculate Optimalization EOQ , purchase frequency (N), and Reorder Point (ROP)
The results showed that inventory cost efficiency can be achieved through the use of the EOQ method which is indicated by the optimalization EOQ, smaller purchase frequency and cheaper inventory costs compared to determining the amount of inventory, purchase frequency, time of order and inventory costs POX’Tempe Business

KEYWORDS:

EOQ, Ordering costs, Storage costs, Total Inventory Costs and Efficiency

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14) Sari Linda Kumala, Dur Sajaratud, Husein Ismail. 2020. Using EOQ and EPQ Methods In Minimizing Inventory Cost of Crude Palm Oil. Zero: Jurnal Sains, Matematika dan Terapan

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VOLUME 06 ISSUE 05 MAY 2023

There is an Open Access article, distributed under the term of the Creative Commons Attribution – Non Commercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting and building upon the work for non-commercial use, provided the original work is properly cited.


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