Optimizing rice inventory in a micro culinary enterprise using economic order quantity

Abstract

Purpose: to optimize rice inventory management using the economic order quantity (EOQ) method to minimize costs and improve operational efficiency.

Method: a quantitative descriptive approach with a case study method was used at Warung Makan Dapi. Data were collected through interviews and analyzed using the economic order quantity (EOQ) model to determine optimal order quantity, safety stock, reorder point, and inventory cost efficiency.

Findings: the EOQ method reduces rice inventory costs from IDR 15,520,000 to IDR 682,184 per year, achieving 95.6% cost efficiency. The optimal order quantity is 455 kg with a reorder point of 12 kg, providing a more effective inventory control system for Warung Makan Dapi.

Implications: implementing EOQ provides a simple and effective inventory management strategy for micro culinary enterprises by reducing costs, improving procurement efficiency, and supporting production continuity.

Originality: lies in applying the EOQ model to a micro culinary enterprise with a highly frequent purchasing pattern, demonstrating significant inventory cost optimization through a simple data-driven approach.