Track: Production Planning and Control

Abstract

Apotek X is located on Jendral Sudirman Street, Duri Barat Village, Mandau District, Bengkalis Regency, Riau Province, Indonesia.  Due to the lack of grouping for medications and a mechanism for calculating the frequency of reorders, this pharmacy struggled to manage its supply of medications. This study aims to identify patent medicine type A using Activity-Based Costing (ABC) Analysis, as well as the optimal number of medicine orders using the Economic Order Quantity (EOQ) Method and reordering. Data is gathered through observation and interviews with medicine supplier companies, lead time, storage costs, ordering costs, and sales data. The ABC grouping analysis of patent medicine type A yielded 31 types of medicine, according to the findings. The use of EOQ proved to be more optimal, with a dispute of Rp. 582. 498,373, as did the use of Reorder Point, with an average of when the drug stayed 1 unit the company had to reorder. Apotek X is expected to consider using EOQ to perform minimum ordering on prioritized drugs in an effort to reduce excessive inventory costs.