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The implementation of economic order quantity for reducing inventory cost: a case study in automotive industry


Year of publication


Published in

Research in Logistics & Production

Journal year: 2018 | Journal volume: vol. 8 | Journal number: no. 4

Article type

scientific article

Publication language


  • inventory management
  • economic order quantity
  • inventory turnover ratio words

EN The EOQ model is one of the oldest classic production scheduling models. The EOQ mathematical models have been established within the scope of operations management to determine the optimal inventory level. The most widely used model is the EOQ model. This journal research uses descriptive research design. A survey was conducted on automotive components of a Japanese company in Indonesia. The company is one of the fastest growing industrial company among automotive component companies. The main products are copper materials used by the automotive industry for lamps, switches, electrical panel components two-wheeled vehicles and four-wheeled vehicles. The Japanese company seeks to meet increasing customer demand but on the other hand strive to obtain optimal inventory costs, as well as demand by parent companies in Japan for faster money turnover or otherwise known as Inventory Turnover Ratio (ITR) and must be in quantity minimum or small. This means the goods in the order must be as required.

Pages (from - to)

289 - 301



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Ministry points / journal in years 2017-2021


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