Optimality Option Analysis of Raw Material Inventory Control Methods at Bandung Donut Pops MSMEs

Abstract

This study aims to analyze the optimality of inventory control methods for raw materials at Donat Pops MSME in Bandung using the Economic Order Quantity (EOQ), Reorder Point (ROP), and Safety Stock approaches. The research is motivated by inefficiencies in conventional inventory management practices, which lead to high ordering costs, unstable stock levels, and production disruptions. A quantitative descriptive method with a case study approach was employed using operational data from 2025. The analysis was conducted by calculating EOQ to determine optimal order quantity, ROP to define the reorder threshold, and safety stock to mitigate demand and lead time uncertainty.The results show that the EOQ model produces an optimal order quantity of 1,341 kg, reducing ordering frequency from approximately 70 times to 27 times per year. The Reorder Point of 450 kg ensures production continuity, while the Safety Stock of 90 kg acts as a buffer against stockout risks. Overall, the implementation of EOQ, ROP, and Safety Stock achieves a 37.4% reduction in total inventory costs compared to the existing system. These findings indicate that quantitative inventory management not only improves MSME operational efficiency but also aligns with Islamic economic principles such as avoiding waste (israf), optimizing resource utilization, and achieving maslahah (public benefit).