International Journal of Industrial and Manufacturing Systems Engineering

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Inventory Control of Tellus 68 Oil and Tellus 46 By Using Economic Order Quantity Method (Case Study at Pama Persada Nusantara, Kpcs Sangatta District, East Borneo)

Received: 06 June 2020    Accepted: 19 June 2020    Published: 06 July 2020
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Abstract

Inventory is a companies asset that has an important role in business operations, so companies need to proactive management, which means companies should be able to anticipate the circumstances and challenges that exist in inventory management to achieve the ultimate goal, namely to minimize the total costs to be incurred by the company for handling inventory. Research conducted at Pama Persada Nusantara District KPCS aims to find out the amount of economical supply procurement in the effort to meet the procurement of Tellus 68 and Tellus 46 oil supplies to support the company's operational activities continuously. The analysis method used is EOQ (Economic Order Quantity), the total cost of inventory obtained from EOQ for Tellus 68 oil is Rp. 3.435.607.950 and Tellus Oli 46 is Rp. 8.424.243.631. The cost of the company for Tellus 68 Oil is Rp. 3.542.953.830 and Tellus 46 Oil is Rp. 9.065.390.370 so that the cost efficiency comparison between company policy and EOQ is Rp. 748.492.619. The results of this study showed that the most economical inventory by comparing the amount of ordering time, the number of purchases, the cost of ordering, storage costs, and the minimum total inventory cost of the company.

DOI 10.11648/j.ijimse.20200502.12
Published in International Journal of Industrial and Manufacturing Systems Engineering (Volume 5, Issue 2, June 2020)
Page(s) 23-27
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Economic Order Quantity, Oil, Reorder Point, Safety Stock

References
[1] M. Arief, Supriyadi and D. Cahayadi, "Analysis of FX Coal Inventory Planning with Material Requirement Planning Method," Journal of Industrial and Logistics Management, vol. 1, no. 2, pp. 133 - 139, 2018.
[2] L. Hadiyanti and MT Siregar, "Determination of Frequency of Ordering Camera Lens Components Using Dynamic Deterministic Methods to Minimize Inventory Costs at PT Xacti Indonesia," Journal of Industrial and Logistics Management, vol. 2, no. 2, pp. 193 - 205, 2018.
[3] W. Kartika and AW Helvianto, "Improvement of Storage Layouts in Warehouses for Reducing Mileage in Material Handling Travel," Journal of Industrial and Logistics Management, vol. 1, no. 1, pp. 56 - 70, 2017.
[4] Hotasadi, "Application of the Economic Order Quantity (EOQ) Method in Controlling Raw Material Inventories at Le Tat Bakery," ACSY Journal, vol. 6, no. 2, pp. 87 - 98, 2017.
[5] M. Trihudiyatmanto, "Analysis of Raw Material Control Using the Economic Order Quantity (EOQ) Method (Empirical Study on CV Jaya Gemilang Wonosobo)," PPKM Journal, vol. 4, no. 3, pp. 220 - 234, 2017.
[6] T. Wahyuni, "Use of ABC Analysis for Controlling Inventory of Consumables: Case Studies in the UI Vocational Program," Indonesian Vocational Journal, vol. 3, no. 2, pp. 1 - 20, 2015.
[7] WJ Stevenson and SC Chuong, Operations Management: Asian Perspectives, Jakarta: Salemba Empat, 2015.
[8] N. Apriyani and A. Muhsin, "Analysis of Raw Material Inventory Control with Economic Order Quantity Method and Kanban at PT Adyawinsa Stamping Industries, " OPSI, vol. 10, no. 2, pp. 128 - 142, 2017.
[9] OE Andira, "Analisis Inventory of Wheat Flour Raw Materials by Using the EOQ (Economic Order Quantity) Method in Makassar Bread," Journal of Business Economics, vol. 21, no. 3, pp. 201 - 208, 2016.
[10] I. Pratiwi, RM Veranika, and F. Suryani, "Analysis of Inventory Planning of 3.2 mm Electrode Welding Electrodes (Case Study of PT Swakarya Adhi Usaha)," Journal of Technology Desimination, vol. 5, no. 1, pp. 57 - 63, 2017.
[11] J. Juventia and LPS Hartanti, "Analysis of PT BS Raw Material Inventories using the Economic Order Quantity (EOQ) Method," Gual Actuality, vol. 5, no. 1, pp. 55 - 63, 2016.
Author Information
  • Industrial Engineering Department, Engineering Faculty, Tridinanti University Palembang, Jalan Marzuki Palembang, Indonesia

  • Industrial Engineering Department, Engineering Faculty, Tridinanti University Palembang, Jalan Marzuki Palembang, Indonesia

  • Electrical Engineering Department, Engineering Faculty, Tridinanti University Palembang, Jalan Marzuki Palembang, Indonesia

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  • APA Style

    Irnanda Pratiwi, Winny Andalia, Hazairin Samaullah. (2020). Inventory Control of Tellus 68 Oil and Tellus 46 By Using Economic Order Quantity Method (Case Study at Pama Persada Nusantara, Kpcs Sangatta District, East Borneo). International Journal of Industrial and Manufacturing Systems Engineering, 5(2), 23-27. https://doi.org/10.11648/j.ijimse.20200502.12

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    ACS Style

    Irnanda Pratiwi; Winny Andalia; Hazairin Samaullah. Inventory Control of Tellus 68 Oil and Tellus 46 By Using Economic Order Quantity Method (Case Study at Pama Persada Nusantara, Kpcs Sangatta District, East Borneo). Int. J. Ind. Manuf. Syst. Eng. 2020, 5(2), 23-27. doi: 10.11648/j.ijimse.20200502.12

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    AMA Style

    Irnanda Pratiwi, Winny Andalia, Hazairin Samaullah. Inventory Control of Tellus 68 Oil and Tellus 46 By Using Economic Order Quantity Method (Case Study at Pama Persada Nusantara, Kpcs Sangatta District, East Borneo). Int J Ind Manuf Syst Eng. 2020;5(2):23-27. doi: 10.11648/j.ijimse.20200502.12

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  • @article{10.11648/j.ijimse.20200502.12,
      author = {Irnanda Pratiwi and Winny Andalia and Hazairin Samaullah},
      title = {Inventory Control of Tellus 68 Oil and Tellus 46 By Using Economic Order Quantity Method (Case Study at Pama Persada Nusantara, Kpcs Sangatta District, East Borneo)},
      journal = {International Journal of Industrial and Manufacturing Systems Engineering},
      volume = {5},
      number = {2},
      pages = {23-27},
      doi = {10.11648/j.ijimse.20200502.12},
      url = {https://doi.org/10.11648/j.ijimse.20200502.12},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ijimse.20200502.12},
      abstract = {Inventory is a companies asset that has an important role in business operations, so companies need to proactive management, which means companies should be able to anticipate the circumstances and challenges that exist in inventory management to achieve the ultimate goal, namely to minimize the total costs to be incurred by the company for handling inventory. Research conducted at Pama Persada Nusantara District KPCS aims to find out the amount of economical supply procurement in the effort to meet the procurement of Tellus 68 and Tellus 46 oil supplies to support the company's operational activities continuously. The analysis method used is EOQ (Economic Order Quantity), the total cost of inventory obtained from EOQ for Tellus 68 oil is Rp. 3.435.607.950 and Tellus Oli 46 is Rp. 8.424.243.631. The cost of the company for Tellus 68 Oil is Rp. 3.542.953.830 and Tellus 46 Oil is Rp. 9.065.390.370 so that the cost efficiency comparison between company policy and EOQ is Rp. 748.492.619. The results of this study showed that the most economical inventory by comparing the amount of ordering time, the number of purchases, the cost of ordering, storage costs, and the minimum total inventory cost of the company.},
     year = {2020}
    }
    

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  • TY  - JOUR
    T1  - Inventory Control of Tellus 68 Oil and Tellus 46 By Using Economic Order Quantity Method (Case Study at Pama Persada Nusantara, Kpcs Sangatta District, East Borneo)
    AU  - Irnanda Pratiwi
    AU  - Winny Andalia
    AU  - Hazairin Samaullah
    Y1  - 2020/07/06
    PY  - 2020
    N1  - https://doi.org/10.11648/j.ijimse.20200502.12
    DO  - 10.11648/j.ijimse.20200502.12
    T2  - International Journal of Industrial and Manufacturing Systems Engineering
    JF  - International Journal of Industrial and Manufacturing Systems Engineering
    JO  - International Journal of Industrial and Manufacturing Systems Engineering
    SP  - 23
    EP  - 27
    PB  - Science Publishing Group
    SN  - 2575-3142
    UR  - https://doi.org/10.11648/j.ijimse.20200502.12
    AB  - Inventory is a companies asset that has an important role in business operations, so companies need to proactive management, which means companies should be able to anticipate the circumstances and challenges that exist in inventory management to achieve the ultimate goal, namely to minimize the total costs to be incurred by the company for handling inventory. Research conducted at Pama Persada Nusantara District KPCS aims to find out the amount of economical supply procurement in the effort to meet the procurement of Tellus 68 and Tellus 46 oil supplies to support the company's operational activities continuously. The analysis method used is EOQ (Economic Order Quantity), the total cost of inventory obtained from EOQ for Tellus 68 oil is Rp. 3.435.607.950 and Tellus Oli 46 is Rp. 8.424.243.631. The cost of the company for Tellus 68 Oil is Rp. 3.542.953.830 and Tellus 46 Oil is Rp. 9.065.390.370 so that the cost efficiency comparison between company policy and EOQ is Rp. 748.492.619. The results of this study showed that the most economical inventory by comparing the amount of ordering time, the number of purchases, the cost of ordering, storage costs, and the minimum total inventory cost of the company.
    VL  - 5
    IS  - 2
    ER  - 

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