Inventory control of raw materials using period order quantity method in preventing the stock-out occurrence

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Achmad Suryadi Nasution, Alfiana Alfiana, Rifky Fauzi, Triyana Muliawati, Dear Michiko Mutiara Noor, Tiara Shofi Edriani

2025 AIP Conference Proceedings Vol. 3309 Issue 1 Conference paper Cited by 0 Quartile

Abstract

Every business environment aims to get the maximum possible profit. Besides profit, continuity and well-managed business are the keys for companies to survive and compete. Each company requires inventory to run its business. In logistics management, the amount of inventory affects the benefits obtained. Therefore, a proper method is necessary to solve the problems and minimize the total costs of the running business. One of the effective methods in answering this problem is the Period Order Quantity (POQ) method, which is a development of the Economic Order Quantity (EOQ) method. The POQ method could resolve problems related to the optimum ordering period that cannot be completed with the EOQ method. This study found that the POQ method yielded a minimum total cost of IDR 89,116,314.10, with a minimum inventory cost of IDR 505,698.72. © 2025 Author(s).

Affiliations

Department of Mathematics, Faculty of Science, Institut Teknologi Sumatera, Terusan Ryacudu Street, Way Hui, Jati Mulyo, Lampung, Jati Agung, 35365, Indonesia