DESIGNING SINGLE STAGE DISASSEMBLY SYSTEM BY USING ECONOMIC ORDER QUANTITY (EOQ) SYSTEM AT MANUFACTURER INDUSTRY, CIKARANG

Abstract

This research discusses about designing single stage disassembly system economic order quantity system at manufacturer industry in Cikarang. It begins with the observation related to the current inventory planning model that use in the company. The core values of this research are determining the reorder interval and determine the Economic Order Quantity (EOQ) in each activity for disassembly, since the data from Bill of Material shows holding cost, purchasing cost and ordering cost as well. Economic Order Quantity (EOQ) is chosen as proposed method which can solve any data in this problem. Economic Order Quantity (EOQ) approach is used to calculate the optimum order quantity, reorder interval, and total cost that occurred in the inventory. The results of this research shows that proposed disassembly system at PT. X Indonesia can reduce the total cost from IDR 851,387,200 to IDR 158,962,200, Reorder interval is 0,2179, and EOQ for each activity disassembly is 287,669. Total saving between using traditional inventory system and using disassembly system is IDR 692,425,000.