Application of material requirement planning in the planning for order cans raw materials

The study aims at finding the right method for planning raw material inventory. It is because at this time, the company has not implemented any method, only based on intuition. With this situation, there is often a shortage of raw materials, which hampers the production process. The company produces three types of products made of cans, namely calendar clips, mosquito coil containers, and paint holders. Material Requirement Planning (MRP) is a system that can help answer what raw materials are needed, how much, and when. The MRP method can create more prices that are competitive, can minimizse product-selling prices, and reduce inventory levels. In addition, using this method of planning will be more structured so that the company can better respond to market demands and is also able to reduce set-up costs and idle time. The stages of this method consist of, Netting (calculation of net needs), Lotting (determining the size of the lot), Offsetting (determining the size of the order), Explosion (calculating the gross requirement). The planning of raw material inventory uses 10 Lotting methods, and the resulting total cost of raw material inventory needs from the method selected based on the lowest cost, namely the Least Unit Cost (LUC) method for the three products with different sizes and ordering periods for each product.