<![CDATA[PT.X is one of the leading tobacco companies in Indonesia and in the world which produce cigarettes. Material requirement planning that can optimize inventory levels is an important thing to do. This study focuses on determining safety time level and methods used in planning hinge lid and soft label for affiliated companies in Philippines. The company is currently ordering materials using the concept of safety time in SAP. The safety time used today is not optimal because criticality or the estimated occurrence of shortage is still common.Simulation shows that there are around 156 times of criticality occurs in the initial condition, 72 times on the suggested safety time using simulation, and 76 times on the converted safety stock to safety time suggestion. The simulation of ROP-EOQ concept carried out on 20 types of material resulted in 59 criticality occurences, while the use of the suggested safety time concept only 9 occurences. Simulations carried out based on total inventory cost show the best results occur when using the safety time generated by trial and error simulation. The proposed trial and error simulation resulted in a decrease in the total inventory cost of Rp758,547,044.03 or around 27.65% from the initial condition.]]>
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