Economic Order Quantity and Reorder Point Optimize Air Compressor Spare Parts Inventory

DOI

10.2991/978-2-38476-589-8_7How to use a DOI?

Keywords

Economic order quantity; Reorder point; Inventory management; Spare parts inventory; Cost optimization

Abstract

General Background: Effective inventory management is essential for ensuring production continuity while minimizing excess stock, operational costs, and warehouse inefficiencies. Specific Background: At PT. XYZ, increased imports of air compressor spare parts, particularly Oil Engine Separators, led to stock accumulation due to ordering quantities exceeding storage capacity. Knowledge Gap: However, limited application of systematic inventory control methods has resulted in inefficiencies in determining optimal order quantities and reorder timing. Aims: This study aims to determine the optimal quantity of compressor spare parts using the Economic Order Quantity (EOQ) and Reorder Point (ROP) methods. Results: The findings indicate that the application of EOQ and ROP significantly reduces inventory costs from Rp. 322,362,150 to Rp. 33,020,408, resulting in cost savings of Rp. 289,341,742 and reducing stock accumulation in the warehouse. Novelty: This study demonstrates the combined application of EOQ and ROP methods in managing air compressor spare parts inventory within a real industrial context. Implications: The results provide practical guidance for companies to optimize inventory control, reduce operational costs, and prevent overstocking through structured inventory management approaches.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Akhmad Prasetyo Arbi
AU  - Boy Isma Putra
PY  - 2026
DA  - 2026/06/18
TI  - Economic Order Quantity and Reorder Point Optimize Air Compressor Spare Parts Inventory
BT  - Proceedings of the 1st International Conference on Communication and Digital Multimedia 2025 (ICCDM 2025)
PB  - Atlantis Press
SP  - 76
EP  - 90
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-589-8_7
DO  - 10.2991/978-2-38476-589-8_7
ID  - Arbi2026
ER  -