Application of material requirement planning method in raw materials planning on sardine product in PT. Blambangan Foodpackers Indonesia

H.D Susanti

doi:10.26656/fr.2017.4(6).228

Abstract

PT. Blambangan Foodpackers Indonesia is one of the big companies in the Banyuwangi area and is a company engaged in the manufacturing industry that is a company processing canned fish. The number of constraints in planning raw material inventories that cause the occurrence of excess or accumulation of raw materials and shortages causes freezing of operational costs. The implementation of the material requirement planning (MRP) system is expected to be able to find out the optimal amount of raw material inventory and the right ordering time to meet production needs with optimal costs. This study was aimed to determine the exact lot size technique based on inventory costs and to compare the MRP method with inventory in the company based on total inventory costs. The research method used was the determination of the lot size and MRP system. The results showed that the lot for lot method for ASCK cans, ASCB cans, ASTB cans, and pasta, while EOQ for ASTK cans, ASEPK cans, sugar, salt and flour. The MRP system in each raw material can be used as an indicator to minimize total inventory costs when compared to the company's method during the previous period.

Highlights

Inventory management is a key factor in the success of any organization and its function is to find sufficient quantities of stock that will meet demand without causing excess stock (Suryawanshi et al, 2018)
Later in the preparation of the material requirement planning (MRP) table, the number of lots used for purchasing raw materials will be used as the calculation results from the Lot For Lot (LFL) method
The inventory costs for two months reached IDR 58,063,935.51 while the MRP method totaled inventory costs for all raw materials IDR 27,714,163.13

Summary

Introduction

Inventories are basic ingredients, goods in the process and finished goods that are considered as part of business assets that are ready or will be ready for sale (Ziukov, 2015). Control of inventory in the supply chain is very important for companies to meet the demands of their customers as well as controlling costs. Uncertainty can have an impact on supply and production processes (Koh and Saad, 2003). Inventory management is a key factor in the success of any organization and its function is to find sufficient quantities of stock that will meet demand without causing excess stock (Suryawanshi et al, 2018). Manufacturing companies use inventory management software by using MRP (Material Requirement Planning) to answer uncertainty. The effects of fluctuations greatly reduce the performance of the tool and cause high production costs, as well as uncertainty in demand (Wazed et al, 2009; Dolgui et al, 2013). The effects of fluctuations greatly reduce the performance of the tool and cause high production costs, as well as uncertainty in demand (Wazed et al, 2009; Dolgui et al, 2013). safety time lead, and lot-sizing rules that can be used as supply variability controls in anticipation of uncertainty (Dolgui and Prodon, 2007)

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Results

Conclusion