Application of Economic Order Quantity (EOQ) Method For Subsidized Fertilizer Inventory Control The Case Study of The South Parigi Farmer Group Mirnawati, Pricylia Chintya Dewi Buntuang
Student of Management Undergraduate Study Program, Faculty of Economics and Business, Tadulako University
Abstract
Farmer groups in South Parigi District often face challenges in managing subsidized fertilizer supplies. And this research examines the application of the Economic Order Quantity (EOQ) method as a solution to improve the efficiency of inventory management by analyzing the economic order quantity, optimum order frequency, safety stock, reorder time, and total inventory cost on subsidized fertilizer supplies of the Kita Pura Farmer Group, South Parigi District. Using a descriptive quantitative approach, this research utilizes numerical data measured by statistics, obtained through interviews and observations. The analysis method used is the Economic Order Quantity (EOQ) model. The results of this study indicate that using EOQ, the economic order quantity for subsidized fertilizer is 121,349 The optimum ordering frequency is 3 times a year or every 120 days and the waiting time is 21 days. The safety stock required is 3,390 Kg with a reorder point when the stock reaches 5,250 Kg. The use of the EOQ model managed to save the company^s total inventory cost of Rp.1,531,101-, as well as overcome delivery delays and prevent stock shortages. As well as ensuring the quality of fertilizer will always be maintained and quality. It is hoped that this research can make a significant contribution to increasing agricultural productivity in South Parigi District, and become a reference for farmer groups, the government, and other related parties in improving the efficiency of subsidized fertilizer distribution.
