Streamlining Raw Material Inventory for Integrated Circuits: An Analysis of Leadframe and Diewafer Supply Using EOQ and JIT

May Lastri Silalahi (), Alrido Martha Devano, Syafri Naldi and Aprizal Putra
Additional contact information
May Lastri Silalahi: Politeknik Negeri Batam, Jl. Ahmad Yani
Alrido Martha Devano: Politeknik Negeri Batam, Jl. Ahmad Yani
Syafri Naldi: Politeknik Negeri Batam, Jl. Ahmad Yani
Aprizal Putra: Politeknik Negeri Batam, Jl. Ahmad Yani

A chapter in Proceedings of the Sixth International Conference on Applied Economics and Social Science (ICAESS 2024), 2025, pp 353-370 from Springer

Abstract: Abstract This study was conducted to analyze the inventory of integrated circuit raw materials, especially leadframes and diewafers using the Economic Order Quantity (EOQ) and Just in Time (JIT) method approaches. This research was conducted to determine the optimal order quantity, avoid excess and shortage of stock, and reduce inventory costs more efficiently. In addition, this research also involves safety stock analysis, reorder point (ROP), and total inventory cost (TIC) to get a more comprehensive picture of optimal inventory management. The data used in this study is inventory data for 2023. The results of the calculation of EOQ, safety stock, ROP, TIC, and JIT are compared with the company's current inventory management. From the analysis, it was found that the EOQ method provides higher efficiency in raw material inventory management compared to the method currently used by the company. This can be seen with the number of leadframe purchases of 10,014 boxes with a leadframe purchase frequency of 2 times a year, savings of 6.015.589, Safety stock (SS) 409, Reorder Point (ROP) 2.078, and JIT made savings of 9.773.469. The number of diewafer purchases is 20,028 boxes with a diewafer purchase frequency of 2,5 times a year, savings of 10.433.486, Safety stock (SS) 1.022.5, Reorder point (ROP) 5.195, and JIT makes savings of 24.140.300.

Keywords: Economic Order Quantity; Just in Time; Safety Stock; Reorder Point; Integrated Circuit Components (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-640-6_26

Ordering information: This item can be ordered from
http://www.springer.com/9789464636406

DOI: 10.2991/978-94-6463-640-6_26

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().