Jurnal Logistik Indonesia Vol.5 , No.2 , Oktober 2021 pp. 86-103 86 E-ISSN: 2621-6442 http://ojs.stiami.ac.id logistikindonesiajournal@gmail.com /logistikindonesiajournal@stiami.ac.id Inventory Cost Reduction and EOQ for Personal Protective Equipment: A Case Study in Oil and Gas Company Andian Ari Istiningrum 1 , Sono 2 , Virgy Andika Putri 3 Program Studi Logistik Minyak dan Gas, Politeknik Energi dan Mineral 1,2,3 andian.istiningrum@esdm.go.id 1 ABSTRACT Article history Received 30 January 2021 Revised 20 May 2021 Accepted 18 October 2021 Keywords: Inventory, Cost Reduction, EOQ, Personal Protective Equipment Personal Protective Equipment (PPE) is one of materials that is urgent for oil and gas companies. Company X is an upstream oil and gas company located in Indonesia that requires its employees to wear PPE. Therefore, the PPE inventory must be controlled carefully to maintain the level of PPE inventory. This research has an objective to reduce PPE inventory cost through the application of Economic Order Quantity (EOQ) method. To achieve this objectives, a research was conducted to 22 items of PPE in Company X. The research was conducted by forecasting PPE demand, calculating optimal quantity and ordering frequency, calculating safety stock and reorder point, and finally calculating the inventory cost reduction. The result shows that the implementation of EOQ has enabled the company to reduce its inventory cost by 19.72%. Therefore, it is advisable for Company X to design and implement EOQ as the inventory control program for PPE. A. INTRODUCTION Globalization and technology lead oil and gas companies to win national as well as international competition. The competition among oil and gas companies forces them to run operations efficiently. One important aspect in the oil and gas companies is the requirement to conduct a high level of health and safety working environment program. This program must be implemented in oil and gas companies to protect their employees. Therefore, each employee has an obligation to wear Personal Protective Equipment (PPE). According to Occupational Safety and Health Administration (2004), PPE is an equipment used to minimize exposure to various hazards when engineering processes, work practices, and administrative controls do not provide adequate protection. PPE consist of eye and face protection, head protection equipment, foot protection, hand and arm protection equipment, and body protective equipment (Occupational Safety and Health Administration, 2004). Company X is one of the oil and gas upstream companies engaged in the exploration, production, refining, marketing and distribution of crude oil, chemicals, power generation, and non-conventional energy in Indonesia. This company has a full day operation and implements a tight discipline in the health and safety program. The company also applies Operation Integration Management System and requires all employees and workers to wear PPE. Health and safety program is managed by the Department of Safety, Security, Health and Environment (SSHE). SSHE provides standard PPE including helmets, glasses, gloves, safety shoes, safety vests, and coveralls. SSHE has a responsibility to conduct PPE procurement procedures. Afterwards, the PPE is stored in the warehouse. Since PPE function is critical in oil and gas companies, the PPE storage handling must be managed properly to meet the needs of the employees. An excess in PPE inventory may result in the