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Analysis of Coffee Bean Raw Material Inventory Control Using the Comparative Approach of Economic Order Quantity (EOQ) And Material Requirement Planning (MRP)

In: Proceedings of the Sixth International Conference on Applied Economics and Social Science (ICAESS 2024)

Author

Listed:
  • Shinta Wahyu Hati

    (Politeknik Negeri Batam, Jl Ahmad Yani, Tlk. Tering, Kec. Batam Kota)

  • Agung Azhari

    (Politeknik Negeri Batam, Jl Ahmad Yani, Tlk. Tering, Kec. Batam Kota)

  • Sutra Intan

    (Politeknik Negeri Batam, Jl Ahmad Yani, Tlk. Tering, Kec. Batam Kota)

Abstract

This research analyzes the inventory control of raw coffee beans at SMEs Coffee Mooi by comparing the Economic Order Quantity (EOQ) and Material Requirement Planning (MRP) methods. The key contribution of this study is demonstrating that the EOQ method can reduce the total cost of inventory management more effectively than MRP for SMEs like Coffee Mooi. Data was gathered through interviews and observations at Coffee Mooi in Batam, Indonesia. The findings reveal that EOQ provides a cost-efficient solution with lower total inventory costs, making it a better choice for small-scale businesses with stable demand patterns.

Suggested Citation

  • Shinta Wahyu Hati & Agung Azhari & Sutra Intan, 2025. "Analysis of Coffee Bean Raw Material Inventory Control Using the Comparative Approach of Economic Order Quantity (EOQ) And Material Requirement Planning (MRP)," Advances in Economics, Business and Management Research, in: Fuad Arif Rahman & Vina Kholisa Dinuka & Jessica Olifia & Agus Supriyadi & Rizki Lanniari HS & Zaima (ed.), Proceedings of the Sixth International Conference on Applied Economics and Social Science (ICAESS 2024), pages 501-512, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-640-6_37
    DOI: 10.2991/978-94-6463-640-6_37
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