Analysis of Inventory Calculation Between the Just In Time Method and the Economic Order Quantity Method at PT. Ohtomi Indonesia: Just In Time Method and the Economic Order Quantity Method at PT. Ohtomi Indonesia

Winda Natalia Pardede; Lembah Dewi Andini; Diana Airawaty

doi:10.59806/jaatb.v4i2.695

Penulis

Winda Natalia Pardede Department of Accounting, Sekolah Tinggi Ilmu Ekonomi Tri Bhakti, Bekasi, Indonesia
Lembah Dewi Andini Department of Accounting, Sekolah Tinggi Ilmu Ekonomi Tri Bhakti, Bekasi, Indonesia
Diana Airawaty Department of Accounting, Universitas Mercu Buana, Yogyakarta, Indonesia

DOI:

https://doi.org/10.59806/jaatb.v4i2.695

Kata Kunci:

Comparison of EOQ and JIT Calculations, Cost Efficiency

Abstrak

Purpose – This research discusses Cost Efficiency. The objective is to assess which method is more efficient in reducing inventory costs. The study employs the Just In Time method and the Economic Order Quantity method.

Design/methodology/approach – This research was conducted at PT. Ohtomi Indonesia. The type of research is qualitative. The data sources used in this study include raw material purchases, ordering costs, and storage costs in 2024. The analysis method applied is a comparison between the Just In Time method and the Economic Order Quantity method.

Findings – At company PT. Ohtomi, there is a discrepancy between theory and practice in the application of inventory control methods. Theoretically, the Just In Time (JIT) method should be able to reduce storage costs since the company does not need to maintain large stock. However, field data shows that inventory costs under the JIT method are actually higher compared to the Economic Order Quantity (EOQ) method.

Research limitations/implications – 1. This research was conducted only at PT. Ohtomi Indonesia and does not cover other manufacturing companies. 2. The study focuses on inventory management for cost efficiency. 3. The data used in this research are internal company data, such as raw material purchase reports and raw material usage for production from January to December 2024.