Forecasting Work In Process Inventory With The Economical Order Quantity (EOQ) Method In Kayu Lapis Indonesia Ltd.

Abstract

This study aims to analyze the economical order quantity, safety stock, reorder points, and total inventory costs. The research location was determined purposively in Kayu Lapis Indonesia Ltd. The research method used is Exponential Smoothing and Economical Order Quantity. The results showed that forecasting veneer needs using the exponential smoothing method obtained in 2020 Kayu Lapis Indonesia Ltd. requires 24,778.89 m of veneers with a forecast error (MAD) of 3 alpha 0.9 of 8.988,45 m . The economic order quantity (EOQ) gets a result of 1,923.48 m with the 3 3 frequency of ordering being done 13 times a year. Safety stock veneer is 12,039.76 m and the 3 reorder point is 12,272.06 m . The total cost of veneer inventory using the economical order 3 quantity method is Rp.51,529,236.76.