ANALYSIS OF DETERMINING RAW MATERIAL REQUIREMENTS EFFECTIVELY AND EFFICIENTLY BY APPLYING THE MRP METHOD

Abstract

This research aims to analyze the effective and efficient lot sizing method for determining raw material requirements in implementing MRP. The research stages are through testing 3 lot sizing methods namely LFL, EOQ, and POQ. The initial stage of data processing is in the form of a MPS obtained from demand recap data and BOM which are components of the product as input. The next step is the MRP process, namely the netting process, the lotting process, the offsetting process, and the explosion process. This stage is in the form of a MRP matrix in tabular form. The next step is to enter the inventory cost calculation process for each method consisting of the storage cost of each component per period and the ordering cost per message. Calculations are carried out for each method to determine the amount of absorption of inventory costs from each method. The results show that the LFL method absorbs inventory costs of Rp.240,000,000, the EOQ method absorbs inventory costs of Rp.251,503,100 and the POQ method absorbs inventory costs of Rp.261,027,683. In this case, LFL has the lowest absorption of inventory costs, according to the current state of the company, does not leave inventory, and is easy to implement for the company. The study results concluded that the most effective and efficient method is LFL according to the current state of the company, does not leave inventory, and is easy to implement for the company. The study results concluded that the most effective and efficient method is LFL according to the current state of the company, does not leave inventory, and is easy to implement for the company. The study results concluded that the most effective and efficient method is LFL