Evaluate the diesel inventor system implemented in PT XYZ through economic order quantity as the basis

Budi, Mellyana and Kusumo, Sandra (2005) Evaluate the diesel inventor system implemented in PT XYZ through economic order quantity as the basis. Bachelor thesis, Petra Christian University.

Abstract

The implementation of the right inventory system within a company is very essential considering that the cost of inventory is quite significant to the total costs that a company has to bear. Considering about this, the authors try to analyze the diesel?s inventory system used in the logging division of PT XYZ in order to find out which inventory system suits this company. Since the company has implemented two different inventory system during the year 2003 and 2004, that are low and high inventory system, thus, the authors will analyze each of this system in order to find out the best system. Considering that each of the inventory system occur in different situation, the authors will use the ideal inventory system, that is Economic Order Quantity (EOQ), as the basis to make the calculation. Moreover, the authors will also evaluate the implementation of EOQ once it is applied in the company, includes all of the costs that are following it. Through this research, hopefully the company will be able to choose the best inventory system which will be able to give the most benefits for the company.

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