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187 
 

 

 
  

IMPLEMENTATION OF INVENTORY INFORMATION SYSTEM DESIGN 

USING ECONOMIC ORDER QUANTITY METHOD 
 

Frieyadie1,*, Tyas Setiyorini 2  

 
1 Sistem Informasi, Teknik Informatika 

Universitas Nusa Mandiri, Jakarta, Indonesia 

www.nusamandiri.ac.id 
1*) frieyadie@nusamandiri.ac.id, 2 tyas.setiyorini@gmail.com 

*) Corresponding Author 

 

Abstrak Permasalahan penelitian yang dihadapi adalah diantaranya biaya pemesanan barang yang selalu 
berubah-ubah setiap ada pemesanan. Pendataan order produk yang kurang baik dan kurang optimalnya 

penanganan order produk hal ini dapet merugikan perusahaan. Untuk memecahkan ketidak baikan 

pengangan manajemen inventory ini, maka menggunakan metode Economic Order Quantity (EOQ) dimana 

terbukti efektif dalam mengatasi permasalahan tersebut. Kontribusi yang dihasilkan dengan membangun 

sistem informasi manajemen inventory, supaya permasalahan yang dihadapi tidak terulang lagi. Tujuan dari 

penelitian ini supaya biaya pemesanan barang menjadi lebih stabil dan menajad lebih optimal dalam 

penanganan order produk. 

 

Kata Kunci: Sistem Informasi; Economic Order Quantity (EOQ) Model Waterfall; Persediaan Barang 

 

Abstract The research problems faced are among others the cost of ordering goods which always changes 
every time there is an order. Poor product order data collection and less than optimal handling of product 

orders can harm the company. To solve the problem of controlling inventory management, the Economic 

Order Quantity (EOQ) method is used, which is proven to be effective in overcoming these problems. 

Contribution is generated by building an inventory management information system so that the problems 

faced are not repeated. The purpose of this study is to make the cost of ordering goods more stable and 

more optimal in handling product orders. 

 

Keywords: Information Systems; Economic Order Quantity (EOQ) Waterfall Model; Inventory 

 

INTRODUCTION 

 

PT. MSJ is a company engaged in manufacturing. 

Where in the process of ordering raw materials, 

incoming or outgoing goods still use a manual 

process, namely by using paper to record them. 

Likewise with the stock items still using paper. Of 

course, this can create big risks that will occur. 

Based on observations at PT. MSJ has several 

obstacles, namely difficulties in finding data on a 

raw material stock (Ramdhany & Fitriasih, 2019) 

(Humaeni, Muanas, & Sudradjat, 2019), data 

processing goods, supplier data, and raw material 

purchase data. In the process of making reports, the 

company still takes a long time to prepare reports 

on raw material stock, incoming goods, and 

outgoing goods that still use paper records which at 

any time can be lost and damaged by rain and dirty 

in uncertain conditions. 

The current purchasing and inventory 

processes are deemed not going well and efficiently, 

where all processes are still running manually 

(Cahyana, Yuwono, & Asmoro, 2012)(Pudjiarti, 

Puspitasari, & Septyawati, 2019)(Atikah, 2017), do 

not have good control, and do not have good data 

collection (Apriani, Aisyah, & Anggraini, 2019). As 

for some of the problems faced, including the cost of 

ordering goods which always changes every time 

there is an order (Tarsono & Khotimah, 2018). This 

ordering cost is also influenced by the type of goods, 

the origin of the purchase of the goods, the amount 

of stock. The process of making documents that still 

use paper documents. Frequent document loss 

(Fatmawati & Munajat, 2018)(Sidik, Waluyo, & 

Susilawati, 2018), damage to documents, and the 

creation of double documents. Difficulty in 

searching for historical data, and difficulty in 

making inventory reports (Setiyanto, Nurmaesah, & 

Rahayu, 2019). The existing system has not been 

able to provide accurate stock information. 

Based on previous research using the EOQ 

method to reduce errors in data collection of 

ordered products (Mujiastuti, Meilina, & Rully, 

2018), so that the optimal ordering frequency can 

be found (Anwar, Mikhratunnisa, & Cahyono, 2019). 

The method proposed in this study is the Economic 



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Vol. 3, No. 1 December 2020 

P-ISSN: 2656-1743 |E-ISSN: 2656-1735 

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Order Quantity (EOQ) method. This method can 

answer the problems faced by PT. MSJ, which can 

calculate the exact reorder point (Nasution & 

Indriya, 2020). Optimally, it can calculate the 

reorder quantity. Based on the trend of using the 

EOQ method (Figure 1) in 1 (one) year in 2020. The 

EOQ method still ranks as a widely used method for 

solving inventory management problems. 

 

 

 
Figure 1. Trends in the Use of the EOQ Method in 2020. 

 

 This inventory information system 

development model adopts the waterfall model, 

where the flow of system development is clearer 

based on the phases in the waterfall model. The 

current research contribution refers to the 

application system designed and implemented at 

PT. MSJ. 

The purpose of this research is to avoid 

document loss, make it easier to produce inventory 

reports, and be able to see accurate and correct 

stocks. Given the breadth of the root of the raw 

material inventory information system, the 

boundaries or coverage will be made to be analyzed. 

The system discussed starts from the ordering 

process to suppliers, warehouse stock, product 

categories, goods data, and releasing goods. In the 

process of inputting incoming goods acceptance 

transactions, goods releasing transactions, and 

printing of goods stock data reports. 

 

RESEARCH METHODS 

 

Data collection technique 

In collecting data and information, the author 

researches to obtain the necessary data, by 

methods, including: 

a. Observation 

The observation process was carried out by 

observing directly at PT. MSJ is a system process 

that runs, both from the initial purchase submission 

until the goods being ordered are received by the 

warehouse so that the research process can run well 

and find out the needs and shortcomings. 

b. Interview 
The interview method is a direct question and 

answer process to the executive, general 

administration, and logistics administration to find 

out problems that exist in the raw material supply 

process. 

c. Literature review 

The literature study process carried out and 

various reference sources both internal media, 

journal articles related to purchasing and inventory 

systems. 

 

Economic Order Quantity (EOQ) 

One of the methods used to control goods in 

a company (Zahirah & Arista, 2019). The existence 

of this EOQ method makes inventory planning 

better. Some things that need to be considered in the 

procurement of goods, namely ordering costs and 

storage costs. This ordering cost will continue to 

increase because usually, the ordering costs will 

continue to change, along with the number of orders 

for goods from suppliers. Storage costs are also a 

burden on the company because storage costs are 

also constantly changing based on the number of 

items stored. 

 

EOQ has a calculation using a formula like the 

following: 

 



 

 

189 
 

 

 
  

��� �  ���	�
�   .................................................................... (1) 
 

From equation 1, calculating the economic order 

quantity, where: 

R: Ordering fee (order preparation and machine 

storage) per order 

S: Estimated use or demand per period 

P: Storage cost per unit per year 

 

EOQ method can be implemented several questions 

can be done in the following conditions. 

a. The demand for a product is constant, uniform, 

and known (deterministic). 

b. The price per unit of product is constant. 

c. Storage Cost per unit per year (P) is Constant. 

d. Order cost per order (R) is constant. 

e. The time between order placed and goods 
received (Lead Time, L) is Constant. 

f. There is no shortage of goods or "Back Orders". 

 

System Development Model 

The Waterfall model is sometimes called 

the classic life cycle (Pressman & Maxim, 2015), 

suggests a systematic and sequential approach to 

software development starting with the 

specification of customer requirements and 

progressing through planning, modeling, 

construction, and deployment, culminating in the 

ongoing support of completed software. 

 

 

 
Figure 2. Waterfall Model 

 

The following is an explanation of the Waterfall 

Model which is in. 

 

a. Communication (Project Initiation & 

Requirements Gathering) 

Time to start technical work, the developer must 

meet with customers to establish communication, to 

understand and achieve the goals of the system to 

be achieved. The result of this communication is the 

initialization of the project, such as the need for 

functional characteristics of each user in the system, 

analyzing the problems faced, and collecting the 

necessary data. 

b. Planning (Estimating, Scheduling, Tracking) 

The 2nd (two) next step is the planning stage 

which describes the estimation of the technical 

tasks to be carried out, the risks that may occur, the 

resources needed to create the system, the work 

products to be produced, the work plans that will be 

carried out, and the tracing of the system work 

processes. 

c. Modeling (Analysis & Design) 

Step 3 (three) is the stage of designing and 

modeling system architecture, with a focus on 

designing data structures, software architecture, 

interface displays, and program algorithms. The 

goal is to better understand the overall picture of 

what will be done. 

d. Construction (Code & Test) 

Stage 4 (four) of the process of translating the 

design form into program code or changing the 

result of the design to a machine-readable language. 

After the coding is complete, testing is carried out on 

the system and also the code that has been created. 

The goal is to find errors that might be corrected 

later. 

e. Deployment (Delivery, Support, Feedback) 
The fifth stage (five) stages of software 

implementation to customers, software repair, 

software evaluation, and software development are 

based on the feedback given so that the system can 

continue to run and develop according to its 

function. 

 

RESULTS AND DISCUSSION 

 

The following is a discussion of system development 

using the Waterfall Model. Each stage of the 

discussion will follow the flow of the Waterfall 

Model stage. 

 

Communication (Project Initiation & 

Requirements Gathering) 

 

The following is a specification of the needs of each 

user of the raw material inventory information 

system. 

1. Purchasing Section 

a. Can log into the system 

b. Can manage product data 
b. Can Manage Supplier Data 

c. Can Manage Purchase Order Data 

2. Warehouse Section 
a. Can log into the system 

b. Can Manage Incoming Items 

b. Can Manage Outgoing Goods 
 

Planning (Estimating, Scheduling, Tracking) 

1. Estimating 

Implementation of estimates in planning the 

technical tasks to be carried out, the risks that may 



JURNAL RISET INFORMATIKA 

Vol. 3, No. 1 December 2020 

P-ISSN: 2656-1743 |E-ISSN: 2656-1735 

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occur, the resources needed to create the system, 

the work products to be produced 

 Analyst System. In charge of carrying out 
system analysis to be built 

 Programmer. In charge of translating the 
results of analysis and design that have been 

made in code with a programming language 

that suits the needs and objectives to be made 

 Tester system. In charge of testing the 
application that is built whether it runs by the 

planned functional needs 

 

2. Scheduling dan Tracking 

Figure 3 is the implementation of work plans 

that will be carried out in the construction of an 

Inventory information system and also tracking 

work. Implementation for 16 (sixteen weeks). 

 

 
Figure 3. Inventory Information System Design 

 

Modeling (Analysis & Design) 

Some modeling for information systems 

analysis using UML will be discussed by describing 

Use Case Diagram modeling. 

 

a. Use Case Diagram Inventory Information 

System  

 

 
Figure 4. Use Case Diagram Inventory Information 

System 

 

Table 1 explains, one of the Use Case Manage EOQ 

Data in Figure 4. 

 

Table 1. Use Case Manage EOQ Data Scenarios 
Use Case 

Name 

: Manage EOQ Data 

Use case 

Description 

: Purchasing Dept. manage EOQ data, 

by adding, update, deleting, and 

printing data. 

Actors : Purchasing Dept. 

Pre-Condition : The system must be connected to an 

intranet network. Purchasing Dept. 

must be logged in 

Post -

Condition 

: After successful login, a successful 

message is displayed for EOQ data 

 
Main 

Scenarios 

Serial 

No. 
Step 

Purchasing 

Dept 

1 Click Add to input EOQ data 

 2 Click View Data to display 

material data 

 3 Click Edit Data to change material 

data 

 4 Click Clear Data to change 

material data 

 5 Permit Accessing System By 

access rights 

Extensions 1a The added EOQ data form appears 

 2a The EOQ data view form appears 

 3a The EOQ data edit form appears 

 4a Clear EOQ data message appears 

 5a Print EOQ data will appear 

 

 

uc Use Case Inv entory Information System

Inventory Information System

Purchasing Dept.

Login

Manage Material 

Data

Manage Supplier 

Data

Manage EOQ Data

Manage Purchasing 

Order

Manage Incoming 

Material

Warehouse
Manage Outgoing 

Material

Create a material 

requirements letter



 

 

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b. EOQ Data Browse Design 
Figure 5 is an EOQ data browse plan, which 

displays the overall EOQ data. Purchasing Dept. can 

manage EOQ data, such as: add, view, edit, delete 
and print data. 

 

 

 
Figure 5. EOQ Data Browse Design 

 

 

 

c. EOQ Data Input Design  

Figure 6 is the form used to add EOQ data, some 

field items that must be inputted by the Purchasing 

Dept. 

 

 
Figure 5. EOQ Data Browse Design 

 

Construction (Code & Test) 

 

a. Economic Order Quantity Algorithm Design 

The following algorithm is written for an 

inventory information system application. 

 
BEGIN 
 NUMBER r, s, p, l 
INPUT r 
INPUT s 
INPUT p 
INPUT l 
INPUT hpt 
 

(2*r*s)/p  eoq 

(p*eoq/2)+(r*s*eoq) tc 
s/eoq  frq 

hpt/frq  dh_eoq 

l*d/hpt  rop 
 
OUTPUT eoq 
OUTPUT tc 
OUTPUT frq 
OUTPUT dh_eoq 
OUTPUT rop 
END 

 

b. Economic Order Quantity Function 

The following functions will be used in the 

inventory information system. 

 



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Vol. 3, No. 1 December 2020 

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public function eoq($r,$s,$p){ 
 $eoq=round(sqrt((2*$r*$s)/$p)); 
 return $eoq; 
} 
public function tc($r,$s,$p,$eoq){ 
 $tc = round(($p*$eoq/2)+($s*$r/$eoq)); 
    return $tc; 
} 
public function frq($r,$eoq){ 
 $frq = round($r/$eoq); 
 return $frq; 
} 

 
public function durasi($jhk,$frq){ 
 $durasi = round(($jhk/$frq)); 
    return $durasi; 
} 
public function rop($l,$r,$jhk){ 
 $rop = round(($l*$r)/$jhk); 
 return $rop; 
} 

 

c. System Performance Testing 

 

 
Figure 6. System Performance Testing 

 

 

Testing system performance in Figure 6, users 

involved as many as 8 users. The response time 

from the initial minute to the last minute of testing 

was set for 10 minutes of listening testing, averaging 

0.92 seconds, reading PDF data files an average of 

1.03 seconds. Average response time with page 

reading of 0.92 seconds. 

 

Deployment (Delivery, Support, Feedback) 

 

The main purpose of this stage is to explain how 

software is implemented into hardware, also to 

visualize how software interacts with hardware to 

carry out its functionality.. 

 

a. Delivery 
After completing the development of the 

inventory information system, the developer then 

submits it to the end user to be installed on the 

company's server. 

 
Figure 7. System Performance Testing 

 

In Figure 7, it can be concluded that the minimum 

specification for running an inventory information 

system application is that on the server side it 

requires a webserver, namely Apache web server, 

with the application installed on the webserver by 

accessing index.php. The database management 

system used by MySQL database. On the client-side, 

deployment Deployment Diagram Inv entory Information System 

«devi ce»

Webserv er

index.php

«device»

Web Serv er

MySQL 

database

«device»

User Dev ice

«appl ication»

Web Brow ser

port 80



 

 

193 
 

 

 
  

using devices that are not limited to PCs, can also be 

tablets, smartphones, laptops. When accessing it 

with a web browser. 

 

b. Feedback 

 

Feedback in table 2, in the form of a user acceptance 

test, is information on the results of the end user's 

reaction to the inventory application, someone's 

performance on an assignment, etc. which is used as 

a basis for improvement. 

 

Tabel 2. User Acceptance Test 

No A list of questions Percentage 

1 
Is the EOQ data management dashboard 

easy to operate 
91% 

2 
Is EOQ data input understandable and 

easy to use? 
93% 

3 
Is change EOQ data understandable and 

easy to use 
93% 

4 
Does appear data EOQ understands and 

is easy to use 
95% 

5 Is the calculation process as expected? 93% 

6 
Is the process of accessing this inventory 

application fast? 
92% 

7 
Is the data access process in this 

inventory application fast? 
92% 

8 Is this inventory application sufficient? 96% 

 

Table 2, is the stage for testing user acceptance of, in 

general, users who test the inventory information 

system accept this application. 

 

CONCLUSION 

 

In general, this inventory information system can 

help users implement the company's existing 

inventory of incoming and outgoing goods. The 

application of the EOQ method can determine the 

volume and frequency of material orders needed to 

meet production needs and reduce the cost of each 

order. 

 

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