INVENTORY PLANNING OF ELECTRICAL COMPONENT USING MULTI-ITEM MULTI-SUPPLIER ECONOMIC ORDER QUANTITY (EOQ) WITH ALL-UNIT DISCOUNT TO MINIMIZE COST AT PT. ABC

Abstract

PT. ABC is a company that produces electrical panels, in its manufacture using electrical components such as Miniature Circuit Breakers, Thermal Overload Relays, Pilot Lamps, Ampere Meters, and supporting components such as straight trays and bolt-nut ring plates. these components are supplied by several suppliers. Because the level of demand from customers varies and fluctuates every month, the inventory management at PT. ABC is not optimal because forecasting product demand is not accurate and does not have a special calculation in measuring inventory levels. From the research results, multi-item EOQ with all unit discounts provides optimal order quantity by using supplier discount policy and obtains lower total costs. This cost can be reduced by 23%, or from IDR 1,894,769,475 to IDR 1,466,990,385. In addition, the total cost for planning for 2022 is IDR 1,550,201,837 based on the results of winter smoothing errors, indicating that the lowest error values are made with MAD 7,0352, MSD 90,3991, and MAPE 0.218%.