3
of inventory. The optimal order quantity can decrease the deterioration rate (spoilage,
shrinkage, decay and obsolescence), procurement
cost, manufacturing cost per unit,
as well as inventory holding rate (Wang, 2008).
From this situation, the researcher
believes that the company can actually
reduce their cost by start calculating their inventory cost and make strategic decisions
from it. The writer
tries to convince the company that they can significantly save
their money for
this research. Because of that, it is necessary to do research to PT
Indosiak Permai about the way to minimize the cost of inventory so the company can
reduce its expenses. Based on this background, this research has the title “Economic
Order Quantity Model for Minimizing Total Inventory Cost at PT Indosiak
Permai”.
1
Does economic order quantity
model can significantly reduce the annual
inventory cost?
2
What is the forecasting method that has the lowest forecasting error?
3
What will be the average inventory of the firm to minimize the cost of inventory
in the future?
1
To know if the economic order quantity model
can significantly reduce the
annual inventory cost.
2
To know which forecasting method that has the lowest forecasting error.
3
To know the average inventory of the firm that can minimize the cost of
inventory in the future.
The benefits of this research for the company and readers are:
1.
For company
The company can use the methods in this thesis to know the optimum quantity of
supplies needed to order per order.
The finance and operation division will get the
bigger benefits.
For finance division, this research will help them with the cost
efficiency and for the operation division; it will help them with the decision making
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