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All Journal Journal of Artificial Intelligence and Digital Business
Mangando, Yuni Putri
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Computer Science & IT Economics, Econometrics & Finance Electrical & Electronics Engineering Engineering

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Improving Inventory Efficiency: A Case Study on the Application of Economic Order Quantity (EOQ) in Coffee Raw Material Management at PT. Toarco Jaya Mangando, Yuni Putri; Mongan , Benyamin; Jaya, Amir
RIGGS: Journal of Artificial Intelligence and Digital Business Vol. 4 No. 2 (2025): Mei - Juli
Publisher : Prodi Bisnis Digital Universitas Pahlawan Tuanku Tambusai

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31004/riggs.v4i2.1280

Abstract

This study aims to analyze and optimize the inventory control system of raw coffee bean materials at PT. Toarco Jaya Toraja Utara by applying the Economic Order Quantity (EOQ) model, along with Safety Stock and Reorder Point (ROP) calculations. The research adopts a quantitative descriptive approach using 2023 procurement and inventory data. The analysis reveals that the implementation of the EOQ method significantly reduces total inventory costs from IDR 4,395,696.33 to IDR 3,384,950.59 per year, achieving a cost efficiency of 22.99%. Moreover, the order frequency decreases from nine times to four times per year, indicating improved operational efficiency. The calculated safety stock of 225.88 kg and a reorder point of 516.30 kg further ensure inventory availability and continuity of production. These findings support the adoption of a data-driven inventory strategy, contributing to cost minimization and production reliability.
Co-Authors Jaya, Amir Mongan , Benyamin