Jurnal Management Risiko dan Keuangan
Vol. 4 No. 2 (2025)

Material Requirement Planning (MRP) For Optimizing Raw Material Inventory in Cigarette Manufacturing

Pratama, Muhammad Fawwaz (Unknown)
Waluyowati, Nur Prima (Unknown)



Article Info

Publish Date
11 Nov 2025

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.

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Journal Info

Abbrev

jmrk

Publisher

Subject

Decision Sciences, Operations Research & Management

Description

Publish all forms of quantitative and qualitative research articles and other scientific studies related to the field of Risk Management and ...