Optimal Raw Material Supply Management (Empirical Study at a Bakery in Bali, Indonesia)

ABSTRACT : This research was conducted at Gayatri Bakery to know the performance of inventorymanagement. The data collection method uses the interview method. The data analysis techniques used are EOQanalysis, determining safety stock, determining to reorder points, determining optimal inventory, and calculatingthe total cost of inventory. Results show that the current inventory system is still ineffective. EOQ method canstreamline the total inventory cost of flour and egg. Companies should carry out an inventory control systemusing the EOQ Method, provide a safety stock and place a reorder point.

Keywords: inventory, EOQ, safety stock, reorder point