Analysis of Inventory Control Using the EOQ (Economical Order Quantity), LFL (Lot For Lot), and POQ (Period Order Quantity) Methods for Cost Optimization (A Study on Warehouse Goods at PT Eco Baby Indonesia)
DOI:
https://doi.org/10.66755/belacoss.v2i2.182Keywords:
Inventory Control, EOQ, POQ, LFL, Inventory Costs, PT Eco Baby IndonesiaAbstract
This study analyzes inventory control at PT Eco Baby Indonesia with the main objective of minimizing total inventory costs. The research focuses on two questions: what is the current inventory cost and which method is most effective among Economic Order Quantity (EOQ), Period Order Quantity (POQ), and Lot for Lot (LFL). A quantitative approach was used through the calculation and comparison of the Total Inventory Cost (TIC) of the three methods based on actual data for 2024, which included ordering costs, storage costs, and lead time variations. The results showed that the LFL method provided the lowest TIC compared to EOQ and POQ. This method adjusts the order quantity to the actual needs of each period so that it does not incur excessive storage costs. Although LFL increases the frequency of orders and has an impact on increased ordering costs, the overall impact still results in lower total costs. This advantage is very relevant to PT Eco Baby Indonesia as a distributor of perishable baby food products, because minimal inventory can reduce the risk of expiration and loss. In conclusion, the LFL method is considered the most optimal in reducing inventory costs at PT Eco Baby Indonesia. These findings emphasize the importance of adaptive inventory control strategies in the distribution business. Further research is recommended to examine the application of digital inventory management technology and lean inventory approaches to further improve efficiency.
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