RESWARA: Jurnal Riset Ilmu Teknik
Vol. 2 No. 3 (2024): RESWARA: Jurnal Riset Ilmu Teknik, July 2024

Optimization of Inventory Control Using Economic Order Quantity and Safety Stock Approach

Saputra, Dwi Putra (Unknown)
Wardhani, Devira Kusuma (Unknown)
Passon, Michael F. (Unknown)



Article Info

Publish Date
29 Jul 2024

Abstract

Effective inventory control plays a crucial role in ensuring operational efficiency and cost minimization, particularly in manufacturing, retail, and small–medium enterprises. Inefficient inventory policies often lead to excessive holding costs, frequent stockouts, and unstable production schedules. This study aims to optimize inventory control by integrating the Economic Order Quantity (EOQ) model with safety stock and reorder point approaches. The research adopts a quantitative descriptive design using secondary operational data derived from empirical case studies and prior applications in manufacturing firms, retail businesses, and small enterprises. Inventory parameters such as demand rate, ordering cost, holding cost, lead time, and service level were analyzed using EOQ-based mathematical formulations. The results demonstrate that the integrated EOQ and safety stock model significantly reduces total inventory costs while improving service levels and minimizing stockout risks. Comparative analysis with previous studies indicates consistency with earlier findings across different sectors, confirming the robustness of the model. The study contributes theoretically by consolidating deterministic and probabilistic EOQ perspectives and practically by providing a structured decision-making framework for inventory managers. The findings support the applicability of EOQ-based optimization as a cost-efficient and scalable inventory control strategy suitable for diverse industrial contexts.

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Journal Info

Abbrev

reswara

Publisher

Subject

Aerospace Engineering Automotive Engineering Chemical Engineering, Chemistry & Bioengineering Civil Engineering, Building, Construction & Architecture Control & Systems Engineering Electrical & Electronics Engineering Industrial & Manufacturing Engineering Mechanical Engineering Transportation

Description

RESWARA: Jurnal Riset Ilmu Teknik is a leading scholarly platform that examines the strategic role of engineering disciplines in advancing the Sustainable Development Goals (SDGs). The journal is dedicated to publishing recent research, innovations, and engineering solutions that support sustainable ...