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All Journal Jurnal Management Risiko dan Keuangan
Pratama, Muhammad Fawwaz
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Decision Sciences, Operations Research & Management

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Material Requirement Planning (MRP) For Optimizing Raw Material Inventory in Cigarette Manufacturing Pratama, Muhammad Fawwaz; Waluyowati, Nur Prima
Jurnal Management Risiko dan Keuangan Vol. 4 No. 2 (2025)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/jmrk.2025.04.2.07

Abstract

Purpose – This study aims to implement the Material Requirement Planning (MRP) method to manage raw material inventory in cigarette production by identifying the most efficient lot sizing technique, determining optimal inventory quantities, and developing an effective procurement plan.   Design/methodology/approach – This research uses a quantitative descriptive approach based on demand data, raw material composition, production schedules, and inventory records for Cakra Kretek Emas 16 at PT Cakra Guna Cipta. Data were collected through interviews and document analysis, then processed using forecasting, lot sizing methods, and MRP techniques.   Findings –  The results show differences in total inventory costs across methods, including EOQ (Rp 52,042,771.2), Part Period Balancing (Rp 41,707,679.53), and more efficient results using Wagner-Whitin Algorithm, Lot-for-Lot, and Period Order Quantity (POQ) with the lowest cost of Rp 30,019,632.81. The POQ method is identified as the most efficient due to its interval-based ordering system.   Originality/value – This study provides a comparative analysis of multiple lot sizing techniques within the MRP framework in the cigarette industry, highlighting the effectiveness of POQ in minimizing inventory costs through interval-based ordering strategies.
Co-Authors Waluyowati, Nur Prima