Controlling the Inventory of Used Accu Raw Materials in the Tin Processing Industry

PT. XYX, a tin metal manufacturing company, faced increased raw material inventory costs due to inaccurate orders, leading to excess stock. To address this, the Economic Order Quantity (EOQ) method was employed. This research aimed to reduce inventory costs by determining optimal purchase quantities, ordering frequency, safety stock levels, and reorder points. The calculations revealed that adopting EOQ could lower inventory costs from IDR 108,000,000 to IDR 40,823,523, achieving a cost reduction of IDR 67,176,477, or 62%. The EOQ method proved to be highly effective, as the optimized inventory levels it suggested were significantly lower than those based on the company's current practices. Thus, EOQ is recommended for improving inventory control and reducing costs at PT. XYX.