Material Requirements Planning Research Articles

IMPLEMENTATION OF MSME INVENTORY MANAGEMENT IN CIPULIR VILLAGE – JAKARTA SELATAN

Community Service Activities (CSA) were carried out in the Cipulir sub-district. The activity participants are MSMEs who live in Cipulir sub-district. The people at the location generally work as traders and small industries. MSMEs often face problems with shortages or excess supplies which have the impact of hampering business activities. The causes of shortages or excess inventory include: a) MSME actors do not forecast sales, so MSME actors only order inventory according to previous order history. This causes ambiguity between the production plan and the raw material requirements plan, which is the reference for purchasing inventory, b) the absence of safety stock, which is useful for guarding against the possibility of stock outs, c) the absence of clear inventory management, with no there is evidence of inventory recording, as well as inventory control. Based on an analysis of the situation faced by partners, the Community Service Team intends to provide solutions to partner problems by increasing knowledge and understanding regarding inventory management for MSMEs. The method used in this activity is sharing sessions and discussions, which are then given training related to inventory management. Then the activity continued with questions and answers and case study simulations. The results of the evaluation showed that most participants understood the material presented. The evaluation results also illustrate that all participants felt they had benefited from this activity, and were satisfied with the implementation of this activity.

THE PLANNING FOR UPPER SHOES RAW MATERIAL INVENTORY USING THE MATERIAL REQUIREMENT PLANNING (MRP) METHOD (Case Study : PT X)

The planning of raw material inventory is one of the essential factors in planning the order of the raw materials that can make a company maintain its production quality. The company’s policies can be implemented in various ways, such as in planning the raw materials inventory to avoid shortages and excesses of the raw materials supply. However, X Inc. has not implemented inventory planning properly, making the costs incurred by the company not optimal. Thus, Material Requirement Planning (MRP) will be used to determine the scheduling time and quantity of raw materials for ordering with lot sizing techniques. Lot sizing techniques provide solutions to determine the right quantity of raw material orders and minimum total inventory costs with techniques which are Lot for Lot (LFL), Least Unit Cost (LUC), Economic Order Quantity (EOQ), and Silver-Meal. Based on the calculation results, the four lot sizing techniques show that the LFL technique is the optimal technique compared to other techniques because it produces the minimum inventory cost of Rp566.015.685,05. Thus, the company can profit Rp13.295.563,75 compared to company policy.

SISTEM INFORMASI MANAJEMEN PLANING STOK DENGAN METODE MATERIAL REQUIREMENT STUDI KASUS DI PT. ARRGO SURYA ABADI

Technology currently plays an important role for a company. The implementation of information systems in companies is very popular because performance activities will run well, including the ease of data processing. In this case the company that wants information technology is PT. Arrgo Surya Abadi. The inventory system used at PT. Arrgo Surya Abadi still uses notes in the form of spreadsheets which are summarized every day, making it prone to errors in planning raw material needs, and it is difficult to control the use of production raw materials such as dyes. From this phenomenon, of course, a capable raw material planning information system is needed to process data and create raw material reports automatically. The aim of this research is to provide report data regarding the amount and time of raw materials procured to smooth production activities. The method used in this research is Material Requirement Planning (MRP). The results of this research conclude that with the existence of a computerized system at PT. Arrgo Surya Abadi can assist the production process related to procuring the right materials, in efficient quantities and time.

Inventory Lot Sizing Decisions for Material Requirements Planning to Minimize Inventory Costs

<p><em>Inventory control is one of the most important factors in achieving optimal organizational performance. Material Requirement Planning (MRP) is a common method used by businesses to manage inventories. This study focuses on a hydraulic firm that has been in operation since 2016. This research examines the planning of eleven components to get the best planning for the company. This study contributes to the integration of Moving Average (MA) and Exponential Smoothing (ES) forecasting techniques alongside the MRP and three lot sizing techniques, such as LFL, EOQ, and LUC. T</em><em>he minimum error value</em><em>s</em><em> </em><em>between MA and ES are evaluated and followed by the comparison between three lot sizing techniques. The result shows that ES (α=0.1) is selected as the best forecasting technique, and LUC presents the lowest total inventory cost. However, LUC is only 0.05 percent lower than what LFL presents. A larger difference is shown by EOQ with 14.57 percent higher than LUC which makes EOQ unlikely to be selected.</em></p>

Analysis of Fabric Raw Material Inventory Control in Backpack Products Using the Material Requirements Planning (MRP) Method at CV. Metassa Collection

Inventory of raw materials is an important factor in the company so that the supply of raw materials in CV. Metassa Collection must be sufficient to guarantee the needs for the smooth running of production activities. The purpose of this study is to determine the supply of raw materials with the Material Requirements Planning method. The method used is Material Requirement Planning (MRP). In calculating the MRP, the methods used are Lot For Lot and Economic Order Quantity (EOQ). The results of the research on the smallest forecasting calculation using the Linear Regression method with MAD values ​​of 274.52, MSE 114.536, and MADE Based on MRP calculations with the Lot Sizing EOQ method produce a total cost of Rp. 2,811,032,000. The minimum ordering of raw materials using the EOQ method for controlling raw material inventory at CV. Metassa Collection.

Implementation of Material Requirement Planning (MRP) in Controlling Raw Materials for Shoes Products at PT.XYZ

PT. XYZ is an industry in East Java that produces products made from animal skins as raw materials. The product produced by this industry is loafers. So far, this industry has had problems with leather raw materials which often experience excess supply requiring high investment, although at certain times they also experience shortages which result in not fulfilling consumer demand. MRP is a system specifically designed to ensure the availability of materials, items or components when needed to meet production schedules and ensure the availability of finished products for consumers in situations of surging demand. MRP can answer exactly what material, how much, and when (what, how much and when) is needed so that the production process can run according to schedule. The results of this study indicate that the Material Requirement Planning (MRP) method has a total raw material inventory control cost of Rp. 189,646,600 and by using the company's method, the raw material control value is Rp. 323,325,500 Savings in raw material control costs that can be obtained by applying the MRP method are Rp. 17,416,700 or about 0.94%.

Sosialisasi Penerapan Metode Arima Untuk Peramalan Permintaan dan MRP untuk Perencanaan Bahan Baku Pengemasan Minyak Goreng

One of the important supply chains that supply raw materials for edible oils is the production system. Influencing costs that can be minimized by preventing overstocking of raw materials. The purpose of this activity is to explain the importance of supply chain inventory planning in food ingredients and to estimate demand using forecasting techniques, i.e. production planning using Autoregressive Integrated Moving Average (ARIMA) and Material Requirements Planning (MRP). to carry out the plan. Method based on Fixed Order Quantity (FOQ) and Periodic Order Quantity (POQ). This activity is targeted at food distributors, and it is expected that the effectiveness and efficiency of food distribution activities will be enhanced by applying these two methods. The socialization method is conducted through webinars (online seminars) with presentations of materials and questions and answers. There were 104 seminar participants, consisting of employees from various production and logistics institutions and 4 ITL Trisakti lecturers. According to the evaluation questionnaire after the exchange meeting, the seminar participants were satisfied and interested in the activities of her ITL Trisakti Lecturer. The results of this socialization activity will be very useful for the training of industry participants, especially those working in the food sector.

Perencanaan dan Pengendalian Bahan Baku Cup 220 ml Dengan Pendekatan Material Requirement Planning di PT Tirta Sukses Perkasa Sukorejo

PT Tirta Sukses Perkasa is a manufacturing company engaged in the production of plastic for packing CLUB mineral water products. Based on initial observations, this company experienced problems in controlling raw materials, thereby reducing cost effectiveness and efficiency. The purpose of this study is to control and determine the amount of raw materials that must be provided. This study used a descriptive quantitative approach with 25 material populations. This study used purposive sampling with a total sample of 4 materials. Researchers here as research instruments that act as data collectors. The analysis method used is the Material Requirement Planning (MRP) method with the help of QM for Windows V5 software. Based on the research results, the MPS forecasting method uses the Moving Averages technique, because it has smaller MAD, MSE and MAPE values compared to using the Exponential Smoothing method. The most optimal Lot sizing uses the Lot for lot technique compared to using the EOQ method because it has a lower total inventory cost.

Decision Support System for Safety Stock and Safety Time Buffers in Multi-Item Single-Stage Industrial Supply Chains

Safety stock and safety time are two well-known stock buffering solutions of material requirements planning (MRP) processes to mitigate against supply and demand uncertainty. While the significance of proper inventory in managing change has been extensively researched, supply chain management research on safety period has gotten less attention. Earlier operations quantitative studies, in particular, have often evaluated the utilization of such stock buffers separately, rather than combined. Considering dynamic demands and stochastic timescales, the authors present the decision support system (DSS) that handle the efforts to integrate appropriate safety stock and safety time judgments at the system level in multi-item single-stage multi -supplier industrial supply chains. The DSS concept is formulated as a mixed bi-objective approach that optimizes upstream storage costs and -service levels at the same time, presenting decision-makers with alternative not dominated feasible solutions.

ANALISIS PERENCANAAN PERSEDIAAN BAHAN BAKU PADA PT. PESONA ARNOS BETON DI KEDAMEAN, GRESIK

This study aims to evaluate the planning of material requirements at PT Pesona Arnos Beton which is located at Jl. Raya Kedamean, Banyuurip Village, Kedamean District, Gresik Regency. The company is engaged in the manufacturing industry of concrete and paving products. Examples of goods produced are Paving, Kanstin, TU, U-ditch, and Box Culvert. Continuous Review System (Q system) is an alternative solution to overcome the problems that exist at PT Pesona Arnos Beton. Data collection methods such as material demand and inventory data are carried out using interview techniques and direct observation. Forecasting is done to forecast the need for raw materials in the next period using Minitab software with the Single Exponential Smoothing and Moving Average methods. Then the calculation is carried out on the data that has been obtained using the Continuous Review System method (Q system) which results in an effective material requirement planning arrangement for the future. PT Pesona Arnos Beton using Minitab 20 software is carried out with the Moving Average and Single Exponential Smoothing forecasting methods. produces the smallest MAPE, MAD, and MSD values are with Single Exponential Smoothing which from the forecasting results obtained the total demand for raw materials for paving and concrete products. The calculation results show that the Q system (continuous review system) produces a minimum total cost. the total inventory cost of cement raw materials is more efficient Rp. 108,039,529, stone ash raw materials save Rp.447,747,948, lumajang sand raw materials save Rp.220,346,921, coral saves Rp.66,527,830, iron 6 saves Rp.21,338,002, and iron 8 saves Rp.29,672,213.

Implementasi Metode Material Requirment Planning (MRP) Dalam Melakukan Perencanaan Persediaan Bahan Baku Kursi Susun Pada CV XYZ

CV XYZ is a company engaged in manufacturing with production in the form of stacking chairs. This company has a production capacity of 200 units of stacking chairs every day. The company has 3 types of bunk chairs, namely CH-100 KR, CH-200 KR, and CH-200 PC. Customer demand at this company tends to be fluctuating (up and down) which results in the company experiencing difficulties in determining the optimal raw material inventory to meet customer needs. The Material Requirement Planning (MRP) method is an appropriate method for scheduling inventory. The result of this scheduling model is in the form of a master production schedule (JIP) which is used to determine the demand for chair products for the next 6 months. The results of data processing obtained requests for stacking chairs in the next 6 months for the type CH-100 KR 10.724 unit, CH-200 KR of 10.998 unit, and CH-200 PC of 9.687 unit. The demand is then calculated using the MRP approach with LFL and EOQ. An effective material requirements planning method with the lowest cost is to use the Lot For Lot (LFL) method which gives the lowest cost results IDR 7,475,617,611.

Penerapan Metode Material Requirement Planning (MRP) guna Merencanakan Kebutuhan Bahan Baku (Studi Kasus: CV. AM Nanda Putra Sidoarjo)

Company CV. AM Nanda Putra is located in Sidoarjo and operates in the scaffolding industry. Currently the company is experiencing losses due to a lack of optimization in planning the amount and time of ordering raw materials, which results in shortages and excess material inventory. To overcome this problem, the company uses the MRP (Material Requirement Planning) method in optimizing raw material planning. In terms of the lot sizing approach, the company applies the LFL and EOQ methods. The forecasting methods used are Moving Average (MA), Weight Moving Average (WMA), and Exponential Smoothing (ES). The smallest MAD results were obtained using the Exponential Smoothing (ES) method for all scaffolding products. The forecasting results are obtained to determine the MPS (Master Production Schedule) for the next 10 months. After the determination of MPS, the results of Material Requirement Planning (MRP) were obtained, namely the supply of raw materials for MF 170 AM scaffolding of 35402 units or 17700 sets, MF 170 K1 scaffolding of 28906 units or 14453 sets, MF 190 AM scaffolding of 16250 units or 8125 sets, and MF 190 K1 scaffolding of 7656 units or 3828 sets. From the results of calculating the cost of raw material requirements using the Lot for Lot (LFL) method and the Economic Order Quantity (EOQ) method, it can be seen that the total cost of planning the smallest raw material inventory with an amount of Rp. 12,975,818,022.

MANAJEMEN MATERIAL SUBSTRUCTURE DENGAN METODE MATERIAL REQUIREMENT PLANNING

Project management planning on sub structure area, very important to ensure efficient and effective construction projects. This research was purposes managing the sub structure material on precast pile and sloof using the material requirement planning (MRP) method in flat residence in West Sumatera. The scope research were the lot for lot (LFL) bar bending schedule and contingency plan (to minimize wasted material). The results of the analysis of study, the implementation of the MRP method (LFL technique) consists of cost of material planning on shop drawing, which was Rp.1,488,562,000,00; cost of material requirement planning by the lot for lot (LFL) technique was Rp.1,477,837,249,00; realization cost by combining the LFL technique and contingency plan is Rp.1,478,143,808,00. Calculation of the quantity and cost of reinforcing steel using the MRP method (LFL technique) by the bar bending schedule better than using the contingency method. Using bar bending schedule was more efficient, because it makes the remaining reinforcing steel after cutting was calculated properly.

Assimilation of advanced manufacturing technologies in small and medium sized enterprises: an empirical analysis

Small and medium-sized businesses are embarking on an ambitious journey of adopting advanced manufacturing technologies due to increased competition and the desire to remain competitive (AMTs). Global competition is measured in terms of improved quality, lower costs, value for money items, quick service, and variety, all supplied concurrently. Due to resource constraints, implementing advanced manufacturing technology has become a lengthy and complex process for small and medium-sized businesses. As the success or failure of a technology is determined by the implementation methods rather than the technology itself, it is worthwhile to study the practices used by small and medium enterprises while implementing advanced manufacturing technologies. A structured questionnaire was administered to 300 Indian SMEs out of which 126 valid responses were obtained. The data obtained was empirically analysed with SPSS 20.0 to explore the following: AMT enablers, current level of AMT assimilation in SMEs, assimilation pattern differences and key factors for improving AMT implementation effectiveness. Findings of this study shows that there is a very strong correlation (0.896) between two direct advanced manufacturing technologies – Flexible Manufacturing Systems and Computer Integrated Manufacturing. Other significant correlation (0.704) is observed between Robotics and Automated Storage/Retrieval Systems. Also, amongst indirect AMTs our results establish a strong correlation (0.814) between Material Requirement Planning and Computer Aided Design. The result of the hypotheses testing indicates that 43.1 % of the performance of the SMEs is explained by AMTs. The findings of this study will help SMEs in the effective assimilation of AMTs.

E-Inventory Management and Performance of Food and Beverages Manufacturing Firms in Kenya

Manufacturing companies in Kenya have been experiencing problems in the performance of their production and operations management. Stock-outs result from holding too little stock of the offending lines because the forecasts and material requirement planning controls are inadequate. High stock levels arise because too much stock has been purchased through bad forecasting, monitoring or controls. The aim of this research was to investigate the effect of e-inventory management on the performance of food and beverage manufacturing firms in Kenya. The study had specific objectives, which were to determine the influence of material requirement planning and radio frequency identification on the performance of these firms. The research design used was descriptive, and the target population was individuals employed in food and beverage firms in Kenya. A stratified random sampling method was employed due to the heterogeneous nature of the population. Structured research data was collected and analyzed using descriptive and multiple regression analysis.
 The study found that radio frequency identification had the second highest impact on the performance of food and beverage firms in Kenya, with a β value of 0.295 and a P-value of 0.004. Additionally, material requirement planning technology had the greatest influence on the performance of food and beverage firms in Kenya, with a β value of 0.316 and a P-value of 0.006. Based on these results, it can be concluded that food and beverage firms in Kenya should prioritize the use of radio frequency identification technology for better operational efficiency and performance. The study also recommends that management should focus on accurately forecasting inventory demands and providing inventory management training for employees.

Material flow control in Remanufacturing Systems with random failures and variable processing times

Material flow control in remanufacturing is an important issue in the field of disassembly. This paper deals with the potential of autonomous material release decisions for remanufacturing systems to balance the uncertainties related to changing bottlenecks, to maximise throughput (TH) and to minimise work-in-process (WIP). The goal is to achieve the highest possible throughput rate using real-time data while keeping costs to a minimum. Unlike traditional production systems, remanufacturing must consider and handle high uncertainties in the process. Up to now, classical methods such as CONWIP, Material Requirement Planning (MRP) and Kanban have been used for material flow control. However, these methods do not perform well in a system with high variation and uncertainties such as remanufacturing as they aim to find solutions for static environments. Crucial for optimal production in stochastic environments is finding the optimum pull or release rate which can vary over time in terms of maximising TH and minimising WIP. We propose a deep reinforcement learning approach that acts on the environment and can adapt to changing conditions. This ensures that changing bottlenecks are taken care of and that there is a minimum WIP in the system.

INVENTORY MANAGEMENT ANALYSIS USING THE MATERIAL REQUIREMENT PLANNING (MRP) METHOD IN THE OPTIMIZATION OF HANDICRAFT RAW MATERIALS

Raw material inventory is a very important asset for a business. The inability to carry out effective planning of raw material inventory can have a negative impact on the production process. Research aimed at optimizing material inventory planning is a very important step to increase the efficiency of the production process. Qualitative analysis is indeed an important and relevant research method in optimizing material inventory planning. This method focuses on an in-depth understanding of the data collected, exploring the meaning of the information provided by informants through interviews, observation, or documentation. The MRP (Material Requirements Planning) method is an effective approach in optimizing material inventory planning. This method allows companies to place orders for raw materials precisely, determine the amount of goods to be purchased, and reduce the risk of delays in the supply of raw materials. The results of using the MRP method are: (1) being able to order raw materials precisely, because we already know what is needed, (2) can determine the amount of goods to be purchased, (3) reducing the risk of delays in the supply of raw materials

Impact of dynamic lot sizing techniques on costs of material requirement planning

Since the beginning of computerised production management, material requirement planning has been a central part of optimising company processes. The reason for this is that the precise computation and optimisation of material requirements can result in significant cost savings for the company in the short term, which can have a significant impact on the overall efficiency of the company's processes. To this end, the definition of the material requirements for production has been complemented by new optimisation methods that can be used to further improve the solution of the problem of dynamic lot sizing. In this paper, the authors investigate the effectiveness of the Wagner-Whitin and Silver-Meal algorithms through a scenario analysis. The results demonstrate that significant cost savings can be achieved by using both algorithms.

Comparative Study of Material Management in Public and Private Building Construction Project Inside Kathmandu Valley

Material management is crucial to timely and cost-effective project delivery. Material management was key to every building job. Material management tasks slowed project delivery. This study compares material management in public and private building projects. The study aimed to improve material management in Kathmandu Valley development projects.The study used 34 projects. DUDBC and NRA executed 16 of them. 18 were by private developers. Primary data was collected by questionnaire and key informant interview. Secondary data was collected using desk study. Relative Importance Index ranked Likert questionnaire responses (RII).The study indicated that the public and private sectors have comparable views on material management in building construction projects. Both sectors agreed on the presence of a material schedule in their respective project, but are unsatisfied with their material management method. They also agreed on the delay in their respective project owing to late materials. Both sectors demanded a separate material schedule for successful material management and favoured the ABC classification approach for inventory planning and material classification. Both sectors insisted on a joint visit to find the material source.The study finds discrepancies between public and private sectors. The public sector highlighted "The source must be able to offer materials that fulfil project specifications in the quantities" as the best guideline for locating material purchasing sources, while the private sector emphasized "The supplier must always be honest." Public sector material management focuses on inventory control, while the private sector prioritizes planning and programming. Public projects use pricing performance to grade vendors, while private builders emphasize quality. The public project emphasizes timetable adherence over quality schedule as the key to delivery performance.The analysis showed severe weaknesses in material management in both industries. In the public sector, material procurement delays, wastage, and quality and specification problems are important material management deficiencies. For the private sector, late supplier answers, transportation, delivery, and stock management challenges.Possible solutions include preparing a material schedule in line with the construction schedule for material requirement planning, verifying materials and locating sources, purchasing required materials in advance before work begins, classifying materials and managing inventory based on usage value, and eliminating and reducing wastages during overall material management. How to cite this article: Shahi S, Shreshta HM, Bhattarai SK et al. Comparative Study of Material Management in Public and Private Building Construction Project Inside Kathmandu Valley. J Adv Res Prod Ind Engg 2022; 9(3&4): 1-11. DOI: https://doi.org/ 10.24321/2456.429X.202202

History, Features, Challenges, and Critical Success Factors of Enterprise Resource Planning (ERP) in The Era of Industry 4.0

ERP has been adopting newer features over the last several decades and shaping global businesses with the advent of newer technologies. This research article uses a state-of-the-art review method with the purpose to review and synthesize the latest information on the possible integration of potential Industry 4.0 technologies into the future development of ERP. Different software that contributed to the development of the existing ERP is found to be Material Requirement Planning (MRP), Manufacturing Resource Planning (MRPII), and Computer Integrated Manufacturing (CIM). Potential disruptive Industry 4.0 technologies that are featured to be integrated into future ERP are artificial intelligence, business intelligence, the internet of things, big data, blockchain technology, and omnichannel strategy. Notable Critical Success Factors of ERP have been reported to be top management support, project team, IT infrastructure, communication, skilled staff, training & education, and monitoring & evaluation. Moreover, cybersecurity has been found to be the most challenging issue to overcome in future versions of ERP. This review article could help future ERP researchers and respective stakeholders contribute to integrating newer features in future versions of ERP.