#TITLE_ALTERNATIVE#

• Main Author: WIRA LOOHO (NIM 19005082), KENNETH
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/10762
• Institution: Institut Teknologi Bandung

Research is done based on the data obtained from PT. XYZ, a company that is in the barcode system business. PT. XYZ is a sole agent for the brand 'X'. Located in Pasar Baru Jakarta, PT. XYZ has been in business since 1990. INTERMEC is a company established in United States, which acts as one of the market leaders in the world in terms of sales.<p> <br /> <br /> <br /> <br /> Growing competition always makes market leaders aware and so does to PT. XYZ. Continued research is done to win the market and gain operation effectiveness and efficiency. The control process is crucial, thus making managerial accounting essential in measuring company's performance. Managerial Accounting can measure the company's capability to withstand, expand, or choose an alternative, and gives the ability to monitor the company's performance. Cost Accounting as the sub of Managerial accounting looks at the cost factor, and one of its theories is Economic Order Quantity or EOQ model.<p> <br /> <br /> <br /> <br /> EOQ model provides the minimum cost that a company can achieve. This research should help the company to determine how much to order each time, when to order in a year, and how many orders to make each year. The objective is to minimize cost.<p> <br /> <br /> <br /> <br /> The result shows different EOQ for each item, as there are 8 items that are counted here. Although the company originally doesn't state that they use EOQ, the way they predict the precise demand are similar to the EOQ concept, so can be said that they did it (EOQ theory) intuitively.<p> <br /> <br /> <br /> <br /> Annual Holding Cost and Annual Order Cost comprise the Total Cost of the company. EOQ compose the minimum cost that company will have to take in the EOQ scheme. Compared to the original total cost, it is much lower, because instead of nine times shipment, two times shipment is enough, plus minimizing the cost.<p> <br /> <br /> <br /> <br /> With this information, company may establish an operation scheme based on this EOQ model. With the objective of cost minimization, this means there resouces can be used for other investment. At the end, the goal is to win market share with a good margin, and sustaining the wealth of the company.