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ABSTRACT

IMPLEMENTATION OF THE ECONOMIC ORDER QUANTITY (EOQ) METHOD IN THE SUPPLY CHAIN MANAGEMENT INFORMATION SYSTEM FOR MATERIAL INVENTORY CONTROL IN PANGLONG CINTA TANJUNG BALAI

Oleh : SANTIA ( 22.22.0267)

Panglong Cinta Tanjung Balai faces challenges in managing building material inventory due to manual inventory recording processes. This condition causes discrepancies between recorded stock data and actual warehouse inventory, increases the risk of human errors, and results in restocking decisions being made based solely on intuition. Consequently, overstock and stockout conditions frequently occur. This study aims to design and develop a web-based Supply Chain Management (SCM) Information System by implementing the Economic Order Quantity (EOQ) method to support inventory control at Panglong Cinta Tanjung Balai. The system was developed using PHP programming language and MySQL database. The EOQ method is utilized to determine the most economical order quantity, while the SCM system integrates procurement activities between the store and suppliers. The results indicate that the developed system successfully transforms manual inventory management into a computerized process, provides optimal order quantity recommendations, displays Reorder Point (ROP) information, and minimizes the risks of overstock and stockout. Therefore, the proposed system improves inventory management effectiveness and supports faster decision-making in material procurement processes.
Keywords: Supply Chain Management, Economic Order Quantity, Inventory Control, SCM, EOQ, Information System