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

DOI

10.2991/978-94-6463-640-6_26How to use a DOI?

Keywords

Economic Order Quantity; Just in Time; Safety Stock; Reorder Point; Integrated Circuit Components

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.

Copyright

© 2025 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  - May Lastri Silalahi
AU  - Alrido Martha Devano
AU  - Syafri Naldi
AU  - Aprizal Putra
PY  - 2024
DA  - 2024/12/31
TI  - Streamlining Raw Material Inventory for Integrated Circuits: An Analysis of Leadframe and Diewafer Supply Using EOQ and JIT
BT  - Proceedings of the  Sixth International Conference on Applied Economics and Social Science (ICAESS 2024)
PB  - Atlantis Press
SP  - 353
EP  - 370
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-640-6_26
DO  - 10.2991/978-94-6463-640-6_26
ID  - Silalahi2024
ER  -