INVENTORY MATERIAL CONTROL WITH ECONOMIC ORDER QUANTITY (EOQ) METHOD ON PRODUCTION SHARING CONTRACT MALLACA STRAIT FIELD AREA

Purbanuara Parlindungan, Sesaria Mardhiani Rachma Puspita, Iqbal Firmansyah, Muhamad Abyasa Risaldi

Abstract


PT. XYZ is a business within the oil and gas industry. PT. XYZ conducts mineral and exploration activities in several parts of Indonesia, one of which is located in the Malacca area with a point of employment named EMP Mallaca Strait, SA. In this study, researchers used four chemical raw materials (EON Break DM 9268, EON Cor CI 7710, EON Solve SI 5710, and EON Solve 288) as research objects. The problem that occurs existing is PT. XYZ does not yet have a good raw material planning and control so that the cost of procurement and annual raw material inventory is high. This study used an method of Economic Order Quantity (EOQ), Re Order Point (ROP), Safety Stock and the comparison of Total Cost between the methods used by the company's method and after using the EOQ method. As well as providing suggestions for holding the value of safety stock and the value of the reorder point.  The results of this study were obtained by using the EOQ method if applied by PT. XYZ, it resulted more optimal total cost, compared to the current method used by PT. XYZ.

Keywords


inventory control, logistics, oil and gas industry, order quantity, raw material

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References


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DOI: https://doi.org/10.25292/atlr.v5i0.474

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