| dc.description.abstract | A common problem in a company is the excess and shortage of inventory. When inventory is lacking, it will cause congestion in the sales process and can reduce customer trust which causes customers to switch to other places. On the other hand, if there is excess inventory, it will cause additional costs and the potential for obsolete and unsustainable quality of goods. PT. Perkebunan Nusantara V Pabrik PKO Tandun is a factory that produces Palm Kernel Oil (PKO). In production activities, the company often faces the problem of excess inventory. The purpose of this study is to optimize the amount of production to minimize the total cost of inventory. In this study the method used is the Economic Production Quantity (EPQ) method. The EPQ method is a method that determines the optimal production amount and optimal time interval so as to minimize the total inventory cost. By using the EPQ method, the optimal amount of production per production cycle is 5,162,604.92 kg with an interval of 1.374 months or 41.22 days. The difference in the cost of procurement of PKO production inventory between calculations based on company conditions and calculations using the EPQ method in one period is Rp.9,027,006,788. | en_US |
