2
researcher beliefs that beside of pushing the sales, company can use another way to
increase the profit, by reducing cost and increase margin of its profit.
Month
Spring
Sponge
2012
2013
2012
2013
January
220
164
1,696
1,317
February
156
94
1,803
771
March
72
145
530
1,352
April
99
133
1,823
729
May
211
207
1,787
1,525
June
101
188
1,926
862
July
250
181
1,779
1,501
August
190
138
644
873
September
167
290
1,735
1,400
October
109
146
1,250
723
November
338
177
927
1,262
December
103
169
1,218
1,120
Total
2,116
2,032
17,118
13,435
Source: PT Indosiak Permai
The factory creates the sponges and comfort layers, and assembles all of the
materials
to make the mattress. Raw materials needed in production are such as
innersprings, quilt fabric, and sponges. The company purchased those materials from
different suppliers and stored in inventory near the factory.
In these two years, the
company
uses conventional way for procuring those materials needed in production.
Wire for making innersprings, for example, were ordered in same quantity once in
two months. It was because that quantity can be used for two months and the
company
is convenience with that. This situation also happens with other materials.
The other reason is that company does not actually calculate the cost
of holding
inventory, thus never actually calculate total cost of inventory.
To solve this problem, inventory model is an appropriate method to use. The
method that can be used is economic order quantity (EOQ) method by identifying the
average cost per order and average cost for holding the inventory. After that, those
data can be used to calculate the quantity of materials per order to minimize the cost
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