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

Abstract

This study was conducted to analyze the inventory of integrated circuit raw ma terials, 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 manage ment. 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 pur chase 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.