Inventory Control of Tofu Raw Materials at “Ridho Ilahi” Home Industry Using the Economic Order Quantity (EOQ) Method

Abstract

This research aimed to compare the conventional method previously used with the EOQ method to reduce costs and improve the efficiency of raw material ordering by using soybean ordering and usage data throughout 2023. The EOQ method was implemented through five analytical techniques, including determining the optimal order quantity, calculating order frequency, setting safety stock, determining reorder point, and analyzing total inventory costs. The results showed that in 2023, the total soybean requirement reached 356.600 kg with an order frequency of 45 times and an average order quantity of 7.925 kg. Based on EOQ calculations, the optimal order quantity was 12,887 kg with a frequency of 28 orders per year. The company was also advised to maintain a safety stock of 1.810 kg and a reorder point of 2.793 kg. The total inventory cost before applying EOQ was Rp15.336.000. The application of the EOQ method reduced the inventory cost to Rp13.918.458, resulting in a cost efficiency of Rp1.417.542 or approximately 9%. These findings indicated that the EOQ method was effective in reducing inventory costs, optimizing the ordering process, and supporting uninterrupted production.