Research Article
Inventory Management Calculations Using the Economic Order Quantity (EOQ) Method in Determining Optimal Quantity and Costs at CV Standard Entertainment Music
@INPROCEEDINGS{10.4108/eai.7-11-2023.2342298, author={Jaecky Jaecky and Hajan Hidayat}, title={Inventory Management Calculations Using the Economic Order Quantity (EOQ) Method in Determining Optimal Quantity and Costs at CV Standard Entertainment Music}, proceedings={Proceedings of the 5th International Conference on Applied Economics and Social Science, ICAESS 2023, 7 November 2023, Batam, Riau islands, Indonesia}, publisher={EAI}, proceedings_a={ICAESS}, year={2023}, month={12}, keywords={inventory management economic order quantity (eoq) order frequency safety stock reorder point total inventory cost}, doi={10.4108/eai.7-11-2023.2342298} }- Jaecky Jaecky
Hajan Hidayat
Year: 2023
Inventory Management Calculations Using the Economic Order Quantity (EOQ) Method in Determining Optimal Quantity and Costs at CV Standard Entertainment Music
ICAESS
EAI
DOI: 10.4108/eai.7-11-2023.2342298
Abstract
CV Standard Entertainment Music can provide a large inventory to prevent stockouts or inventory shortages. However, maintaining a large inventory can lead to increased ordering costs and storage expenses and vice versa, which may prompt them to switch to other companies. This can hinder business growth. This research aims to determine the optimal inventory management calculations for Speaker BMB S10, Amplifier BMB SM250, and Microphone BMB SM180 using Economic Order Quantity (EOQ) analysis, order frequency, Safety Stock (SS), Reorder Point (ROP), and Total Inventory Cost (TIC). The results of this study show that the Economic Order Quantity (EOQ) method can provide optimal inventory results, allowing the company to efficiently utilize the order quantity for each order, avoid stock shortages or excesses with safety stock and reorder points, and save inventory costs for the three sample products of CV Standard Entertainment Music in the 2022 period.
