Abstract:
Inventory is important for the company that represent 60% of current assets. PT. XYZ
is a company that engages in steel manufacturing industry to produce welding products.
This study aims to determine the inventory control using Economic Order Quantity.
This study used descriptive quantitative analysis using secondary data provided by the
company such as total raw material used, total raw material purchased, ordering costs,
holding costs, and frequency order. The current situation of the company, purchased of
raw materials was not in accordance with the used of raw materials results in shortage
in some raw materials and some was excess. Based on this situation, this study tried to
analyze the inventory amount and inventory cost using economic order quantity. The
result shows that using calculation of EOQ could help company saving the total cost
of inventory up to $7,725.30. Further, this study also providing forecasting for the next
following years using the moving average with interval 2 to adjusting the demand of a
company. By doing this study, the company can get better performance on the
inventory control.
