| dc.description.abstract | UD. Rosen Jaya is a company engaged in wood processing, specifically in the production of various types of furniture. Raw materials are the main component in product manufacturing and will undergo various stages of processing before becoming finished goods. Inventory is raw materials or goods stored to maintain the availability of raw materials or resources according to the required amount. In its production process, this company is highly dependent on the availability of the main raw material, namely wood. Problems that often arise are inconsistencies in inventory management, such as stock shortages when demand is high and the accumulation of raw materials when demand decreases, which causes high storage costs and the risk of material damage. To overcome these problems, the Economic
Order Quantity (EOQ) method can be applied to optimize and manage raw material stock. The research stages carried out are determining the initial Total Inventory Cost (TIC), forecasting raw material needs, determining order quantity, Reorder Point (ROP), safety stock, maximum inventory, and determining the Total Inventory Cost (TIC) after implementing EOQ. The Total Inventory Cost (TIC) incurred by UD. Rosen Jaya during the period of April 2024 to March 2025 reached Rp35.750.000. The results of the forecast of raw material requirements in April 2025 - March 2026 were 839 units, 1.274 units, 1.492 units, 1.581 units, 1.555 units, 1.691 units, 1.654 units, 1.759 units, 1.870 units, 1.301 units, 1.087 units, and 975 units, respectively. These forecast results are used to calculate order quantity, safety stock, reorder point, maximum inventory and Total Inventory Cost (TIC)
after the implementation of EOQ to support the raw material inventory control system at UD. Rosen Jaya. The total order quantity for raw materials is 4.200 units of wood, with a safety stock of 239 units of wood, a Reorder Point (ROP) of 524 units of wood, a maximum inventory of 4.439 units, and a Total Inventory Cost (TIC) after implementing EOQ of Rp31.502.595. This means that there is a savings of Rp4.247.405 or around 11,88%. | en_US |
