Nerli Khairani, Hafizah Miranda Putri Hrp
The Economic Production Quantity (EPQ) Method is a method commonly used in inventory control problems, especially production in order to determine the optimal policy. In this study the Economic Production Quantity (EPQ) method was applied to determine the inventory control of Crude Palm Oil (CPO) and Kernel in determining the optimal amount of production so as to minimize inventory costs and maximize profits. The research was conducted by collecting data, namely data on the amount of production, the amount of distribution, procurement costs, and storage costs. The results obtained for the optimal amount of Crude Palm Oil (CPO) production per production cycle is 4.773.794,238 kg with an optimal time interval is 1,963 months and the optimal amount of Kernel production per production cycle is 1.228.927,139 kg with an optimal time interval is 1,980 months. There is a difference in inventory cost savings generated using the Economic Production Quantity (EPQ) method and the calculation based on the conditions of company's production is Rp 3.582.494,503 for Crude Palm Oil (CPO) and Rp 8.354.988,945 for Kernel. © 2022 American Institute of Physics Inc.. All rights reserved.
Department of Mathematics, Universitas Negeri Medan, Medan, Indonesia
