Open AccessRaw Materials Inventory Planning in Automotive Industries by EOQ Method Consider with the Contract Agreement
Author(s) -
Teguh Sri Ngadono,
Zulfa Fitri Ikatrinasari
Publication year - 2020
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/847/1/012049
Subject(s) - economic order quantity , automotive industry , inventory cost , raw material , operations management , production (economics) , order (exchange) , holding cost , operations research , business , computer science , supply chain , economics , engineering , microeconomics , marketing , chemistry , organic chemistry , aerospace engineering , finance
One of industrial sector that currently continuous growing up is automotive industry. Safety glass is a kind of automotive component that always has improvement and development. To support production running well, raw materials supply inventory has to be considered and managed as well. Poly Vinyl Butyral (PVB) as raw material is purchased from 2 suppliers and both of them have a contract agreement. Inventory shall be set up to fulfill the demand and follow the contract. By use Economic Order Quantity (EOQ) Method, inventory is calculated to minimize the cost. So the research objective is to determine inventory system of PVB and inventory cost by optimum. Then researcher got the result is EOQ Method can reduce the inventory cost around 52% than last period by keep consideration with the contact agreement.