Analysis of Inventory Control with Material Requirement Planning (MRP) Method on IT180-55gsm F4 Paper Product at PT.IKPP, TBK

Authors : Erry Rimawan , Dana Santoso Saroso , Puspita Eka Rohmah

Volume/Issue : Volume 3 - 2018, Issue 2 - February

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PT. Indah Kiat Pulp & Paper (IKPP), Tbk Tangerang is one of Sinar Mas Group’s subsidiaries producing various types of paper. In providing inventory to make various types of paper, it is necessary to have a good inventory control and in accordance with the demand of production. However, inventory control in these companies often encountered, such as over stock. Material Requirement Planning MRP is a method used to control raw material inventory at the company. In this research, using Moving Average forecasting method, Linear Trend, Double Exponential Smoothing, Constant, and Winter Season. The MRP method used is LFL, EOQ, FOQ, and POQ. The best forecasting result is Winter Seasonal with the smallest error value and the best result of MRP method used is POQ with the overall cost is Rp48,394,597.So, using Material Requirement Planning (MRP) method with Lot Sizing technique used is POQ, Indah Kiat company can minimize total inventory cost.

Keywords : Inventory, Forecasting, Material Requirement Planning (MRP), Order Cost, Holding Cost, Total Cost.


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