<![CDATA[Raw material inventory is a vital component in the production process, especially in manufacturing industries such as PT Bakrie Pipe Industries, which specializes in steel pipe production. The main issue faced by the company is the suboptimal control of raw material inventory for the Non API.KT 24 specification steel pipe product, resulting in cost inefficiencies and unstructured ordering. This study aims to determine the optimal order quantity and total inventory cost using the Economic Order Quantity (EOQ) method. A quantitative approach was used, based on data of annual demand, ordering cost, and holding cost obtained from the company. The results indicate that the optimal order quantity (EOQ) is 43,577,128 kilograms per year. Based on this quantity, the total inventory cost incurred by the company is Rp14,402,700,962 per year. These findings demonstrate that the EOQ method effectively assists the company in minimizing inventory costs and improving raw material management efficiency. This study recommends that the EOQ model be consistently implemented as part of the company’s inventory management strategy.]]>
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