An EOQ-Based Decision Framework for Seasoning Raw Material Inventory in Instant Noodle Production

Abstract

This study develops an Economic Order Quantity (EOQ)-based decision framework for managing seasoning raw materials at PT XYZ, an instant-noodle manufacturer in Ciawi, Bogor. A descriptive quantitative case-study design was employed using field observation, interviews with Production Planning and Inventory Control (PPIC) and warehouse personnel, and company records for September-November 2025. The analysis examined eight inventory clusters and calculated EOQ, safety stock, and reorder point (ROP) for eight priority materials: garlic, chili powder, palm oil, sweet soy sauce, salt, lemongrass, flavor, and carrot. Baseline evidence showed that opening stock for most priority materials was substantially below production requirement plus safety stock, indicating a recurring procurement gap associated with supplier minimum-order policies, price and quality variability, seasonal supply disruption, and the absence of a consistently applied quantitative replenishment rule. The resulting EOQ values ranged from 93 kg for lemongrass to 916 L for palm oil, while the corresponding ROP values ranged from 8 kg to 144 L. These values provide material-specific guidance for order quantity and timing and distinguish fresh, quality-sensitive ingredients from more storage-stable inputs. The proposed framework combines EOQ, safety stock, and ROP with closer coordination among PPIC, warehouse, procurement, and production, supported by improved SAP data integration. Because the recommendations were not implemented and re-measured during the internship period, the findings represent an operational decision baseline rather than verified cost savings or causal improvement in production attainment.