Authors:
Chairul Furqon
;
Mokh. Adib Sultan
and
Rifqi Jalu Pramudita
Affiliation:
Universitas Pendidikan Indonesia, Jl. Dr. Setiabudhi 229, Bandung, Indonesia
Keyword(s):
Material Requirement Planning (MRP), Lot for Lot (LFL), Economic Order Quantity (EOQ), Periodic Order Quantity (POQ).
Abstract:
Inventory management has a strategic position in the company. As the one of the most expensive assets of many companies, inventory representing almost 50% of total invested capital. Therefore, this study aimed to analyse inventory management, especially Material Requirement Planning (MRP) implementation on the company. MRP system with lot sizing techniques such as Lot for Lot (LFL), Economic Order Quantity (EOQ), and Periodic Order Quantity (POQ) are implemented to decide when and how many materials are needed based on the cost that company will pay. The research use descriptive comparative methods. Most of the data analysed are about; product’s specification, number of orders in one year period, lead time, setup cost, holding cost, and so on. The overall result shows that MRP analysis with POQ technique is the best method’s with minimum cost of all materials.