APPLICATION OF EOQ IN A COMPANY FOR THE PROCUREMENT OF WRAPPING PLASTIC AND GLUE IN A CARTON BOX MANUFACTURING COMPANY

Abstract

Inventory management is a crucial aspect of operations in manufacturing companies, including those engaged in carton box production. One of the most effective approaches is to maximize and optimize the management of auxiliary materials, such as wrapping plastic and glue, through the application of the Economic Order Quantity (EOQ) method. This study aims to analyze the application of EOQ in order to determine the optimal purchase quantity and minimize total inventory costs, which include ordering and holding costs. By using data on annual demand, ordering costs, and holding costs, EOQ calculations were conducted for wrapping plastic and glue. The results of the EOQ implementation indicate that the company can reduce the number of orders and suppress operational costs without disrupting the smoothness of the production process. This study provides strategic recommendations for the company in managing raw materials to enhance operational efficiency in supporting the continuity of carton box production.