IMPLEMENTATION OF MATERIAL REQUIREMENT PLANNING METHODS AT STARTUP BUSINESS

• Main Author: Widianingsih
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/78618
• Institution: Institut Teknologi Bandung

Currently in Indonesia, start-up business is growing fastly due to goverment policy that promote the rise of the new entrepreneurs. KISSE (Cookies Sehat) is among many start-up business in Indonesia, which is in Bandung, that focus in culinary particularly in healthy cookies. As a start-up business, they are still facing some problems and challenges to grow their business, such as inventory system and production scheduling problem. Therefore, we conduct the reseach to develop the solution to the inventory problems faced by KISSE Company. The objective of this research is to implement material requirement planning (MRP) in KISSE Company in order to solved their inventory problems and production scheduling. Material requirement planning is a methods that are used to control inventory and production planning especially to schedule and decide how much raw material is needed in producing goods. To do this research, we collect primary data by interviewing the Nituty Cookies management and observing the production division at KISSE Company. From those data, then we forecast the dependent demand, create the bill of material, and develop the master production scheduling. The result of this research is the formulation of MRP system for start- up business that would make their inventory system and production scheduling more effective and efficient, such as maintain the lowest possible level of inventory, ensure the availability of materal and components, plan manufacturing and purchasing activities. This study recommends KISSE (Cookies Sehat) company to use lot sizing methods that is LFL method (non-perishable components) - LFL (perishable component) to obtain a lower total cost of 165% compared with EOQ (non-perishable components) - LFL (perishable component), so the company does not only minimize inventory can also save the costs. It is because, if using the LFL - LFL, the costs to be incurred by the company amounted Rp1.536.000 + Rp288.000 = 1.824.000 rupiah. Meanwhile, if using EOQ - LFL, the costs to be incurred by the company amounted to Rp2.730.118 + Rp288.000 = 3.018.118 rupiah. After that, the benefits of this research are as references for start-up businesses in finding a formulation that is effective and efficient in production activities and also in order to the management system of start-up businesses can be more structured, especially the management of operations. In addition, thus, the sales will continue to rise accompanied by an increase in production capacity.