Open AccessApplication of MRP System for Control of Raw Material Inventory with EOQ Lot Sizing
Author(s) -
Andre Jonathan Christifan,
Lina Gozali
Publication year - 2020
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/1007/1/012029
Subject(s) - economic order quantity , sizing , safety stock , inventory control , raw material , inventory cost , material requirements planning , operations research , stock (firearms) , stockout , computer science , operations management , reliability engineering , mathematics , business , engineering , economics , production (economics) , supply chain , marketing , chemistry , art , visual arts , mechanical engineering , organic chemistry , macroeconomics
PT. Skala Maxima Griya Workshop 1 is a company who produces TV cabinets. Raw materials stored in Workshop 1 warehouse are very piling up to over stock. Forecasting is done using a method that is in accordance with the request pattern. Then the best forecasting method is chosen based on MSE, MAD, SDE, MAPE, ME, and MPE the smallest. Forecasting results are used to create a MPS. The data from the MPS is used to calculate safety stock and make product MRP. The results of MRP products are used to calculate gross requirements, lot sizing, and MRP of raw materials. This research uses lot sizing technique EOQ. After calculating the results obtained that the selected forecasting method is DES with alpha 0.1. The safety stock calculation also shows good results where the safety stock that must be prepared by the company is not too much the majority of value if in the round up is 1. The MRP calculation with lot sizing EOQ also shows a good thing where there is a savings in raw material costs of Rp 10,800,000 .00 or 54.18% after using this method.