Abstract :

In today’s highly competitive retail industry, inventory management plays a vital role in maintaining operational stability and company profitability. Imbalances in inventory, whether it be overstocking or stockouts, can have a significant negative impact on operating costs and customer satisfaction. This study focuses on the problem at Indomaret outlets, which often reorder fast-moving products based on subjective intuition without precise mathematical calculations, thereby triggering cost inefficiencies. The purpose of this study is to analyze the level of inventory cost efficiency by applying the Economic Order Quantity (EOQ) method. This study uses a quantitative descriptive approach. Data was collected through historical documentation, including annual demand data, average ordering costs, and storage costs per unit. The analysis was conducted by comparing the Total Inventory Cost (TIC) between the conventional method currently applied by the company and the results of the EOQ method calculation. The results show that the application of the EOQ method is able to provide more optimal order quantity recommendations with more efficient frequency compared to the company’s actual method. The application of EOQ has been proven to significantly minimize total inventory costs. These findings recommend the need to integrate the EOQ algorithm into the retail inventory management information system to support accurate decision-making and ensure sustainable operational efficiency.

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Keywords :

Cost Efficiency, Economic Order Quantity, Inventory management, Retail., Stock Optimization.

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References :

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