| Summary: | Inventory and production management is an important part in operational activities of
a company because if it can be managed properly it can save a total cost that must be
invested. Starting the inventory control processes from the planning, ordering,
storage, preparation to process/production. Management decisions to save the total
cost can be done applying the model of Economic Order Quantity and Economic
Production Quantity.
Classical EOQ model is generally assumed that there is no discount for additional
quantities of raw materials ordered, but practically often suppliers offer discounts for
more materials purchased. Therefore, the problems will be resolved in this study
begins by identifying the problem of raw material inventory control and production
systems within the company, calculating Economic Order Quantity (EOQ) Quantity
Discount model, then calculate the amount of the Economic Production Quantity
(EPQ), and formulate appropriate solutions through a comparison between the actual
inventory control used by the company with EOQ Quantity Discount methods and
EPQ.
This study will compare a test between the actual inventory control used by the
company with EOQ Quantity Discount model. The study will begin by conducting a
literature review related to inventory management models that will be used, then
collecting data for analysis can be conducted so as to produce an information. Such
information will be analyzed and evaluated to obtain a conclusion which is the most
optimal method of this research.
The conclusions are that the inventory control technic used by the company today
based on intuition and habit. The analysis result showed that the use of EOQ Quantity
Discount model is more effective to generate the total cost (TC), which is lower than
the actual inventory control used by Obonk Steak, while the Economic Production
Quantity method can reduce the burden on the company because the company can
estimate how the amount of production per day based on level of daily demand of
customers. The use of two methods are able to manage inventory and production
systems better, more measurable and lower total cost to be incurred by the company.
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