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PT Linggayoni Economic Order Quantity Analysis

PT Linggayoni is determining the economic order quantity and reorder point for ordering goods. They require 120,000 units annually and consider ordering every 1-12 months. The total inventory cost is calculated based on order costs of Rp15 million and annual savings costs of Rp9.6 million. The optimal purchase frequency that minimizes total cost is determined to be ordering every 3 months with a quantity of 40,000 units.

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Shandya Maharani
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14 views6 pages

PT Linggayoni Economic Order Quantity Analysis

PT Linggayoni is determining the economic order quantity and reorder point for ordering goods. They require 120,000 units annually and consider ordering every 1-12 months. The total inventory cost is calculated based on order costs of Rp15 million and annual savings costs of Rp9.6 million. The optimal purchase frequency that minimizes total cost is determined to be ordering every 3 months with a quantity of 40,000 units.

Uploaded by

Shandya Maharani
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

PT LINGGAYONI

ECONOMIC ORDER QUANTITY

QUANTITY OF GOODS REQUIRED 120000 Unit


QUANTITY OF GOODS ORDERED 12000 Unit
PRICE OF GOODS PER UNIT Rp 10,000
ORDER COST
Cost of Ordering Goods Rp 100,000
Freight Cost Rp 1,250,000
Additional Cost Rp 150,000
Sub Total Order Cost Rp 1,500,000
TOTAL ORDER COST Rp 15,000,000
SAVINGS COST
Capital Cost Rp 2,500,000
Assurance Cost Rp 500,000
Storage Cost Rp 3,600,000
Cost of Good Maintenance Rp 3,000,000
Sub Total of Saving Cost Rp 9,600,000
Percentage of Saving Cost 16%
TOTAL SAVINGS COST Rp 9,600,000
TOTAL INVENTORY COST (ORDER+SAVINGS) Rp 24,600,000

PT LINGGAYONI
REORDER POINT

Lead Time 4 Week


Weekly Needs 60 Unit
% Safety Stock from Lead Time Needs 50%

Reorder Point 360 Unit

Lead Time 4
Weekly Needs 60
Additional Needs for Use Dueing 2

Reorder Point 360 Unit


ECONOMIC ORDER QUANTITY 15000

Purchase Frequency 1 2 3
Quantity of Unit Ordered 120000 60000 40000
Inventory Value Rp 1,200,000,000 Rp 600,000,000 Rp 400,000,000
Average Value of Inventory Rp 600,000,000 Rp 300,000,000 Rp 200,000,000
Savings Cost per Year Rp 96,000,000 Rp 48,000,000 Rp 32,000,000
Order Cost per Year Rp 15,000,000 Rp 30,000,000 Rp 45,000,000
Total Cost Rp 111,000,000 Rp 78,000,000 Rp 77,000,000
4 6 8 10 12
30000 20000 15000 12000 10000
Rp 300,000,000 Rp 200,000,000 Rp 150,000,000 Rp 120,000,000 Rp 100,000,000
Rp 150,000,000 Rp 100,000,000 Rp 75,000,000 Rp 60,000,000 Rp 50,000,000
Rp 24,000,000 Rp 16,000,000 Rp 12,000,000 Rp 9,600,000 Rp 8,000,000
Rp 60,000,000 Rp 90,000,000 Rp 120,000,000 Rp 150,000,000 Rp 180,000,000
Rp 84,000,000 Rp 106,000,000 Rp 132,000,000 Rp 159,600,000 Rp 188,000,000
PT LINGGAYONI
ECONOMIC ORDER QUANTITY

QUANTITY OF GOODS REQUIRED 120000


QUANTITY OF GOODS ORDERED 12000
PRICE OF GOODS PER UNIT Rp 10,000
DISCOUNT 10%
PRICE OF GOODS PER UNIT PAID Rp 9,000

ORDER COST
Cost of Ordering Goods Rp 100,000
Freight Cost Rp 1,250,000
Additional Cost Rp 150,000
Sub Total Order Cost Rp 1,500,000
TOTAL ORDER COST Rp 15,000,000
SAVINGS COST
Capital Cost Rp 2,500,000
Assurance Cost Rp 500,000
Storage Cost Rp 3,600,000
Cost of Good Maintenance Rp 3,000,000
Sub Total of Saving Cost Rp 9,600,000
Percentage of Saving Cost Rp 0
TOTAL SAVINGS COST Rp 9,600,000
TOTAL INVENTORY COST (ORDER+SAVINGS) Rp 24,600,000
Purchase Frequency 1 2
Purchase Done Every 12 6
Quantity of Unit Ordered 120000 60000
Inventory Value Rp 1,200,000,000 Rp 600,000,000
Average Value of Inventory Rp 600,000,000 Rp 300,000,000
Savings Cost per Year Rp 96,000,000 Rp 48,000,000
Order Cost per Year Rp 15,000,000 Rp 30,000,000
Total Cost Rp 111,000,000 Rp 78,000,000

EEQ Before Discount Rp 15,000


EOQ After Discount Rp 15,811
3 4 6 8 10 12
4 3 2 1.5 1.2 1
40000 30000 20000 15000 12000 10000
Rp 400,000,000 Rp 300,000,000 Rp 200,000,000 Rp 150,000,000 Rp 120,000,000 Rp 100,000,000
Rp 200,000,000 Rp 150,000,000 Rp 100,000,000 Rp 75,000,000 Rp 60,000,000 Rp 50,000,000
Rp 32,000,000 Rp 24,000,000 Rp 16,000,000 Rp 12,000,000 Rp 9,600,000 Rp 8,000,000
Rp 45,000,000 Rp 60,000,000 Rp 90,000,000 Rp 120,000,000 Rp 150,000,000 Rp 180,000,000
Rp 77,000,000 Rp 84,000,000 Rp 106,000,000 Rp 132,000,000 Rp 159,600,000 Rp 188,000,000

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