The Development of Material Requirement Planning and Inventory Policies for Raw Materials by Comparing Perpetual (Q), Multi Item Periodic (P), and Lead Time Crashing Models

• Main Author: NISRINA - (13413011), NORA
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/23522
• Institution: Institut Teknologi Bandung

Indonesia's marine and fishery processing industries in the period 2010-2014 continued to grow with an average increase of 15.2% per year. One of the industries that contributed to these developments was the cracker industry. The demand of cracker product has been increasing, both in domestic and foreign markets, as happened in Sri Tanjung Cracker Factory. <br /> <br /> <br /> <br /> Since its establishment in 1997, Sri Tanjung Cracker Factory has increased the production and sales of products by 600%. The plant produces three variants of fish crackers, based on the type and composition of the fish used. Currently, the factory is experiencing inventory problem, namely: raw materials are stacking in the warehouse. In 2016, the raw materials stacking reached IDR 1,130,728,540. This condition occurs because of the absence of a clear production plan and inventory management that rely solely on managers’ intuition. For the solution of the problem, Sri Tanjung Cracker Factory requires clear production plan and inventory policy for raw materials. A Material Requirement Planning (MRP) will be determined based on the characteristic of raw material needed by Sri Tanjung Cracker Factory which consist of common material and unique material. <br /> <br /> <br /> <br /> The determination of inventory policy of Sri Tanjung Cracker Factory using probabilistic model because the demand characteristics of the factory has probabilistic pattern. Inventory policy is determined by comparing Q model, modified P multi item model, and modified crashing lead time model. The result of Q model is order quantity and reorder point. The result of modified P multi item model is the time between ordering and maximum inventory for raw materials originating from the same supplier. The result of modified crashing lead time model is order quantity, reorder point, and optimum lead time. The best inventory policy is selected based on the minimum total cost criteria for each raw material and supplier. Later on, this policy will be the basis for the preparation of the MRP for each raw material for reference to the production plan. <br /> <br /> <br /> <br /> This research gives the solutions for problems in Sri Tanjung Cracker Factory as follows: solution for raw material of tapioca using inventory policy of development of crashing lead time model; solution for raw material of type 1 fish using inventory policy of Q lost sales model; solution for raw materials of type 2 fish using inventory policy of Q backorder model; solutions for raw materials from Supplier 3 and Supplier 4 use inventory policy of development of P backorder model. The proposed solutions of this study have successfully reduced the total inventory cost by 11.32%, from IDR 5,044,434,933.73 to IDR 4,473,414,962.12 and the raw materials stacking by 25.06%, from 25,006.90 kg to 18,740.30 kg. In addition, the research also developed a MRP that could be used to perform production planning and control of purchased raw material.