Analysis Of Raw Material Inventory Using The Economic Order Quantity (Eoq) To Optimize Inventory Management (Case Study At Bekawan Coffee Shop)
Keywords:
Financial Statements, Investment Decisions, Return on Equity (ROE)Abstract
This study aims to analyze the management of robusta green bean raw material inventory at Bekawan Coffee Shop and evaluate the effectiveness of applying the Economic Order Quantity (EOQ) method in improving raw material procurement efficiency. The research method used is descriptive quantitative with a case study approach. Data was obtained through observation, interviews, and internal company documentation during 2024. The results show that the actual inventory management system is not yet fully efficient because it is carried out without optimal calculations and is still manual. Through EOQ calculations, the optimal order quantity is set at 515,771 grams per transaction with an order frequency of 10 times per year. The total inventory cost based on the EOQ method is IDR 2,038,451 per year, which is much lower than the actual system cost of IDR 22,000,000. In addition, a reorder point of 195,337 grams and a safety stock of 20,944 grams were also determined. To facilitate implementation in the field, the researchers developed a simple EOQ Excel model that can automatically calculate remaining stock, provide reorder alerts, and adjust to daily operational conditions. This model was tested through simulation during January 2024 and proved to be effective in assisting procurement planning and avoiding stock shortages. Thus, the EOQ method and Excel model developed can improve cost efficiency, order accuracy, and operational stability at Bekawan Coffee Shop.
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