Optimizing the Supply of Cooking Oil Raw Materials Using the Economic Order Quantity Method (Case Study: PT. Smart Tbk)


Authors : Aidawayati Rangkuti; Catur Brilian Setiawan; Muh.Nur

Volume/Issue : Volume 8 - 2023, Issue 3 - March

Google Scholar : https://bit.ly/3IIfn9N

Scribd : https://bit.ly/3ThjyAd

DOI : https://doi.org/10.5281/zenodo.7739283

Abstract : Optimization is the process of finding the best solution or optimum value of a problem. Crude Palm Oil or commonly called CPO is one of the raw materials in cooking oil production. According to some studies the Economic Order Quantity method is used to analyze inventory. The purpose of this study is to determine the total cost of raw materials for cooking oil that is optimum. This research was conducted at PT. Smart Tbk with data obtained from 2017-2021. The results show that by using the Economic Order Quantity method, companies can save on inventory costs in the last 5 years with an average saving of 5.7%.

Keywords : Crude Palm Oil, Economic Order Quantity, Inventory Costs.

Optimization is the process of finding the best solution or optimum value of a problem. Crude Palm Oil or commonly called CPO is one of the raw materials in cooking oil production. According to some studies the Economic Order Quantity method is used to analyze inventory. The purpose of this study is to determine the total cost of raw materials for cooking oil that is optimum. This research was conducted at PT. Smart Tbk with data obtained from 2017-2021. The results show that by using the Economic Order Quantity method, companies can save on inventory costs in the last 5 years with an average saving of 5.7%.

Keywords : Crude Palm Oil, Economic Order Quantity, Inventory Costs.

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