Analysis of Raw Material Inventory Control Using Economic Order Quantity (Eoq) Method at Good Coffee Houses in Surabaya

Abstract

This research aims to analyze the management of raw material supplies at Rumah Kopi Baik Surabaya using the Economic Order Quantity (EOQ) method. Raw material inventory plays an important role in the smooth operation of a company, but inefficient management can cause wasted costs and disrupt the production process. The EOQ method is used to determine the optimal order quantity, so as to reduce storage and ordering costs for raw materials. The data used in this research was obtained through direct observation, interviews with business owners, and analysis of raw material purchase documents. Analysis is carried out to calculate EOQ, safety stock, reorder point (ROP), and total inventory cost (TIC). The research results show that the application of the EOQ method at Rumah Kopi Baik has succeeded in reducing storage costs and reducing order frequency. The total cost savings achieved are more significant compared to previously applied conventional methods. Implementing EOQ at Rumah Kopi Baik not only increases operational efficiency, but also has a positive impact on the company's profitability. With more optimal inventory management, Rumah Kopi Baik can meet customer demand without stock shortages or wasting raw materials. Keywords: Economic Order Quantity (EOQ), inventory control, storage costs, ordering costs