Inventory Planning and Control of Raw Materials using The Economic Order Quantity (EOQ) Method (Case Study : Hoolu Burger Cafe)

Abstract

Inventory control is an important aspect in maintaining the continuity of the production process and minimizing a company's operational costs. Ineffective inventory management may lead to stock shortages or excess inventory, both of which can increase operational costs. Cafe Hoolu Burger is a food and beverage business that uses chicken and beef as the main raw materials in its production process. This study aims to determine the optimal order quantity and evaluate the efficiency of inventory costs using the Economic Order Quantity (EOQ) method. The forecasting methods used in this study include Moving Average, Weighted Moving Average, and Single Exponential Smoothing. The results show that the optimal order quantity is 52 packs for chicken and 79 packs for beef, with ordering frequencies of 24 times and 37 times, respectively, within a six-month period. The implementation of the EOQ method is able to reduce the total inventory cost compared to the company’s current policy. The total inventory cost for chicken decreases from Rp104,875 to Rp97,167, while the cost for beef decreases from Rp149,661 to Rp148,136. These results indicate that the EOQ method can improve the efficiency of inventory management in small-scale food businesses.