Abstract :
This study aims to determine the quantity or quantity of economic orders
(EOQ), safety stock, point of re-ordering, and the total cost of raw materials
inventory of skin on UD. Sagga Leather. The data used in this study consist of
primary data and secondary data both qualitative and quantitative in relation to
the stock of paper raw materials. Primary data obtained through observation as
well as direct interviews with various parties concerned. Secondary data is
obtained from company management documents and reports. The results of this
study indicate that the application of EOQ (Economic Order Quantity) method
on UD. Sagga Leather Malang is more efficient than the simple method used by
the company. The application of this method does emphasize how important the
raw material inventory planning for the company in the production process.
Keywords: Economical order quantity (EOQ), Inventory.