Calculation of EOQ (Economic Order Quantity) In Optimizing the Inventory Level of Dacron at Mell Toys’ Home Industry

Abstract

Abstract Inventory control is very important so that the production can operate run well, one of the inventory controls is by using the EOQ method (Economic Order Quantity) on the purchase of raw materials. The purpose of the research is to optimize inventory costs in the manufacturing of Mell Toys home industry and to find out the total optimal of raw material orders. The method used in this study is a quantitative method. The data used in the study were obtained from interviews. Data will be calculated manually obtained from the company using the EOQ method approach. This research produces data using EOQ the number of orders for raw materials is 3885 kg, this is greater than the company’s purchasing policy but with the calculation of EOQ, the total inventory cost can be saved from Rp. 4.800.000 to Rp. 424.250,8671. So using EOQ in purchasing raw materials can optimize inventory costs in Mell Toys home-made doll industry.