COMPARISON OF EFFECTIVENESS INVENTORY CONTROL OF EOQ METHOD WITH COMPANY METHOD IN STEEL MATERIAL FABRICATION KRAKATAU POSCO

Main Article Content

Gunawan Adam
Tukhas Shilul Imaroh

Abstract

PT. Krakatau Posco, is the largest steel manufacturing company in Southeast Asia that produces slabs and plates. This study aims to compare the effectiveness of controlling inventory of steel material fabrication workshop with the EOQ method and compared with the current method of the company in an effort to prevent the unavailability of such steel material fabrication. Inventory control using the EOQ method is expected to provide solutions for inventory control, and optimal ordering in order to obtain savings for inventory costs (Total Inventory Cost) at PT. Krakatau Posco. The method used is an interview and take the necessary data, then conduct an initial analysis using the ABC method to clarify the data that has been carried out at PT. Krakatau Posco, controls inventory using EOQ, determines safety stock, ROP and maximum inventory. By controlling the ordering and inventory also expected to provide significant savings for the company, by reducing inventory costs (Total Inventory Cost). The conclusion of this research is the EOQ method is the right method for controlling steel raw material fabrication to meet the production and repair processes at PT. Krakatau Posco and with this method the results of total inventory costs are also more efficient.

Article Details

How to Cite
Adam, G., & Tukhas Shilul Imaroh. (2019). COMPARISON OF EFFECTIVENESS INVENTORY CONTROL OF EOQ METHOD WITH COMPANY METHOD IN STEEL MATERIAL FABRICATION KRAKATAU POSCO. Dinasti International Journal of Education Management And Social Science, 1(2), 124-137. https://doi.org/10.31933/dijemss.v1i2.65
Section
Articles

References

Agus Harjito and Martono. 2011. Management Finance. Second Edition, First Matter, Yogyakarta: EKONISIA Publisher.
Agus Ristono. 2013. Inventory Management. Graha Ilmu Publisher,Yogyakarta.
Agarwal Sachin, 2014, Economic Order Quantity Model : A Review VSRD International Journal of Mechanical, Civil, Automobile and Production Engineering, Vol. IV Issue XII December 2014.
Alexandri, Moh. Benny. 2009. Business Financial Management: Theory and Questions. Bandung: Alfabeta Publisher.
Andiana Mellisa, 2018, Application of EOQ Method in Controlling Raw Material Inventory of PT X. Maranatha Accounting Journal Volume 10 Number 1, May 2018: 30-40.
Andreano, Langke, Merlyn M., 2018, Analysis of Inventory Control of Coconut Raw Materials at PT. Tropica Cocoprima Using Economic Order Quantity. EMBA Journal Vol.6 No.3 July 2018, Pg. 1158 - 1167.
Anik, and Abdul, 2018, Analysis of Raw Material Inventory Control Using Methods EOQ di PT. X Management System & Industrial Engineering journal Vol 1 No.2.
Apriyani Noor .2017. Analysis of Raw Material Inventory Control Using Economic Order Quantity and Kanban Methods at PT. Adyawinsa Stamping Industries. Journal of Option OPTIONS Vol 10 No 2
Assauri, Sofyan. 2011. Production and Operations Management. Jakarta: CP- FEUI.
Darsono, 2017, Inventory Control System with EOQ Method Using Genetic Algorithms (Gundaling Farm Case Study). Journal of ISD Vol.2 No.1 January - June 2017.
Dwi Putra and Agoes, 2019, Analysis of Inventory Management Performance in Barjaz Company Using the EOQ Approach. Eud Management E-Journal, Vol. 8, No. 1,
2019: 7163 – 7190.
Elwidho, Achmad, 2016, Analysis of Raw Material Inventory Control Using the Economic Order Quantity Method in Bonansa Bread Company. Management Analysis Journal 5 (4) (2016).
Gede Agus, Darmawan, Wayan Cipta, & Ni Nyoman, 2015, Application of Economic Order Quantity (EOQ) in the management of flour raw material supplies in the PIA ARIAWAN business in Banyuwangi Village. e-Journal Bisma Ganesha Educational University Department of Management (Volume 3 2015).
Guga,and, Orjola, 2015, Inventory Management through EOQ model aCase Study of Shpresa LTD, Albania. International Journal of Economics, Commerce and Management United Kingdom Vol. III, Issue 12, December 2015. Handoko, Hani T. 2011. Fundamentals of Production and Operations Management. Surakarta:
BPFE.
Heizer, Jay dan Barry Render. 2010. Operation management. Ninth Edition. Jakarta: Salemba Empat.
Hasian D.P. 2016, The concept of Minimum Inventory Maximum Control Part of PT. Semen Padang mining heavy equipment. Journal of Industrial Systems Optimization, Vol. 11 No. 1, April 2012: 203-207.
Indonesian Accounting Association. 2014. Introduction to Financial Accounting. Palembang: Indonesian Accounting Association of South Sumatra Region. Paduloh, Rio, 2018, Analysis of Inventory Control of Iron Plate Body Caroseri Industry Raw Materials Using the EOQ Method (Case Study at PT.MISITAMA). Journal of Industrial Manufacturing Vol. 3, No. 1, January 2018, pp. 37-44.
Prawirosentono, Suyadi. 2009. Operations Management: Analysis and Case Study. Fourth Edition. Jakarta: Bumi Aksara.
Pujawan, I., N., dan Mahendrawathi. 2017. Supply Chain Management, Third Edition, Guna Widya, Surabaya.
Rakes.k. 2016, Economic Order Quantity (EOQ) Model .Global Journal of Finance and Economic Management. Volume 5, Number 1 (2016), pp. 1-5.
Schroeder, Goldstein and Rungtusanatham. 2010. Operations Management: Contemporary Concepts and Cases. 5th ed.. McGraw-Hill.
Sofyan, Diana Khairani. 2013. Production Planning and Control. Lhokseumawe NAD: Penerbit Graha Ilmu.
Sugiyono. 2011. Administrative Research Methods. Bandung: Alfabeta.
Sutawijaya & Marlapa.2016. Supply Chain Management Analisa dan Penerapan Mengunakan Reference (SCOR) di PT. Indoturbine. MIX: Jurnal Ilmiah Manajemen, Volume VI, No. 1. 121-138.
Taufiq, Daniel, Muhammad, 2017, Inventory Based Inventory Management Application
Economic Order Quantity (EOQ), . Jurnal JTIK, 1(1) 2017, 48-60.
Tungalag, Erdenebat, 2017. A Note on Economic Order Quantity Model). iBusiness,
2017, 9, 74-79.
Yamit, Z. (2011), “Inventory Management ", Ekonisia, Campus of the Faculty of Economics UII, Yogyakarta.