Optimization is the process of finding the best
solution or optimum value of a problem. Crude Palm Oil
or commonly called CPO is one of the raw materials in
cooking oil production. According to some studies the
Economic Order Quantity method is used to analyze
inventory. The purpose of this study is to determine the
total cost of raw materials for cooking oil that is optimum.
This research was conducted at PT. Smart Tbk with data
obtained from 2017-2021. The results show that by using
the Economic Order Quantity method, companies can
save on inventory costs in the last 5 years with an average
saving of 5.7%.
Keywords :
Crude Palm Oil, Economic Order Quantity, Inventory Costs.
