Serambi Engineering
Vol. 11 No. 1 (2026): Januari 2026

Optimizing Coil Raw Material Inventory for Pipe Manufacturing Using EOQ, Reorder Point and Safety Stock at PT. XYZ

Kemal Darma Nazidan (Unknown)
Isna Nugraha (Unknown)



Article Info

Publish Date
03 Jan 2026

Abstract

Steel coil raw material inventory plays an important role in ensuring the smooth production process. PT XYZ faces inventory instability, both in the form of shortages and excess stock, which causes production constraints and increases storage costs. This study aims to determine the most accurate forecasting method, calculate the economic order quantity, determine the reorder point, and determine the amount of safety stock so that inventory control is more optimal each month. The methods used include forecasting with Economic Order Quantity to predict raw material needs and calculations. Reorder Point and Safety Stock to determine the order quantity, optimal inventory, and the minimum point of raw materials for restocking. Based on the analysis results, the pattern of steel coil usage shows a seasonal trend. The forecasting results using the Weighted Moving Average method provide the smallest error rate with an MSE value of 5,856,347.80 and a MAD of 2,175.80. Through the application of the EOQ method, the optimal order quantity is 3039 tons, a reorder point of 3162 tons, and a safety stock value of 4,572.447 tons. The conclusion obtained from this study is that the forecasting and EOQ methods are able to increase the efficiency of inventory control and minimize the risk of shortages of coil raw materials every month at PT XYZ.

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Journal Info

Abbrev

jse

Publisher

Subject

Earth & Planetary Sciences Energy Engineering Environmental Science Industrial & Manufacturing Engineering

Description

The Serambi Engineering journal is published as a medium to distribute information on research results in engineering and science, both carried out by lecturers from the Serambi Mekkah University and other parties. Published research can be in the form of field research or laboratory research as ...