Analysis of E-Flute Raw Material Inventory Control using the Material Requirement Planning (MRP) Method in a Cardboard Packaging Company

Abstract

Cardboard packaging companies are companies thatproduces various types of packaging products including Master Boxes, Archive Boxes, Mosnon Boxes, Small Cartons, Big Cartons). Cardboard packaging companies have not implemented good inventory management when purchasing E-Flute raw materials, soInventory control in these companies often experiences problemsnamely ordering and using inappropriate raw materials, sometimes in excess and sometimes in shortage. Optimum material requirements planning is carried out using the Material Requirement Planning (MRP) method. This method begins by forecasting the number of requests for the future. This forecasting is carried out using the Moving Average, Exponential methodSmootingand Linear Regression. After knowing the price of raw materials, data on material requirements, and costs for inventory and material storage, then a comparison of inventory planning costs is carried out using the Lot For Lot (LFL) method.AndEconomic Order Quantity (EOQ). From the calculation results of the two methods, the method that produces the minimum inventory costs is selected. The Lot For Lot (LFL) technique produces the lowest total inventory costs, namely Rp4.800.000,-