Open AccessMinimizing inventory cost of dried food materials availability: An analyzing in teaching hospital
Author(s) -
Ratna Maya Sari,
Syarifah Yasmin Firiza,
Erwin Erwin,
Khalida Syahputri,
I Rizkya,
Ikhsan Siregar
Publication year - 2021
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/1122/1/012116
Subject(s) - economic order quantity , stock (firearms) , total cost , safety stock , inventory cost , carrying cost , average cost , perpetual inventory , order (exchange) , reorder point , mathematics , operations research , operations management , inventory control , agricultural science , economics , business , environmental science , microeconomics , inventory theory , supply chain , marketing , engineering , mechanical engineering , finance
Excess stock of dried food materials directly proportional to the increase in inventory cost. Average overstock in Teaching Hospital during February 2019 - April 2019 is 39,3% with total capital invested of the overstock of IDR 13.702.247. In addition, an overstock caused by an average total damage of 18,31% which is resulted in a loss of 29,73% of the capital invested in dried food material overstocked. Dried food material excess stock is caused by the absence of a reference limit for orders and the optimal number of orders. The number of orders are not optimal will cause the order frequency to increase and make order costs also increase. The purpose of this research is to prove whether there is a cost minimization of the cost of dried food material which is higher than the Economic Order Quantity (EOQ) model when compared to the actual dried food inventory model. EOQ was used to calculate the optimal number of orders for dried food, safety stock and reorder points calculation. In the total cost of inventory calculation based on actual conditions when compared with the total cost of inventories using the EOQ method for dried food, a saving efficiency of 44,22% is obtained.