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Abstract:-PT. Indah Kiat Pulp & Paper (IKPP), Tbk given good inventory control can increase the productivity
Tangerang is one of Sinar Mas Group's subsidiaries of the company. PT IKPP uses make to order and make to
producing various types of paper. In providing inventory stock, therefore stock and inventory control must be well
to make various types of paper, it is necessary to have a managed. However, control with make to stock is
good inventory control and in accordance with the sometimes still difficult to control. Therefore, on products
demand of production. However, inventory control in that are regulated with make to stock often over stock. It can
these companies often encountered, such as over stock. be seen from this grafik :
Material Requirement Planning MRP is a method used
to control raw material inventory at the company. In this
research, using Moving Average forecasting method,
Linear Trend, Double Exponential Smoothing, Constant,
and Winter Season. The MRP method used is LFL, Stock (box)
EOQ, FOQ, and POQ. The best forecasting result is
Winter Seasonal with the smallest error value and the
best result of MRP method used is POQ with the overall Demand
cost is Rp48,394,597.So, using Material Requirement (box)
Planning (MRP) method with Lot Sizing technique used
is POQ, Indah Kiat company can minimize total Final Stock
inventory cost.
Keyword:-Inventory, Forecasting, Material Requirement
Planning (MRP), Order Cost, Holding Cost, Total Cost.
D. Scope of Problem Cycle Pattern (C), occurs when data is affected by long-
term economic fluctuations related to business cycles.
Master production schedule obtained from forecasting Trend Pattern (T), occurs when there is a long-term
of production demand in PT.Indah Kiat Pulp & Paper secular increase.
(IKPP), Tbk.
The calculation of each material starts from level 0. D. Forecasting Method
Once the message is received.
Assumptions at the time of data collection and the In doing the forecasting calculation there are several
factors that influence it constant. methods that can be used. Frequently used forecasting
Analysis is done only based on data obtained in methods are:
research both primary and secondary data.
The total cost to be calculated in this research is the Constant
ordering cost and the storage cost. Moving Average
The object of measurement of raw material inventory Trend Linier
control includes the amount of demand data of F4 size Single / Double Exponential Smoothing
paper production with type IT180 - 55GSM from Winter Seasonal Factors
January - December 2016. Cyclical
Approach of raw material requirement planning method
(MRP) in this research used lot size method; Lot For E. Accuracy of Forecasting Results
Lot (LFL), Economic Order Quantity (EOQ), Fixed
Order Quantity (FOQ), Period Order Quantity (POQ). Here is an analysis of forecasting errors using several
And forecasting production by Constant method, statistical measures, among others (Nasution &
Moving Average, Linear Trend and Double Exponential Prasetyawan, 2008);
Mean Absolute Deviation (MAD)
II. LITERATURE REVIEW
𝐴𝑡 −𝐹𝑡
MAD = ∑
A. Inventory
Where:
Inventory is the idle resources that wait further process. The A = Actual demand in period t
meaning of such further process is in the form of production F1 = Forecasting demand in period t
activities on manufacturing systems, marketing activities on n = Number of forecasting periods visible
distribution systems or food consumption activities in
Mean Square Error = MSE
household systems (Baroleh, 2014). The result of inventory
that has not run optimally is the occurrence of excess or At -Ft 2
shortage of inventory. If the excess inventory (inventory is MSE = ∑
n
too large), it will result in storage costs rather than raw
material inventories will be high, retained capital, and Mean Forecast Error = MFE
reduced funds for investment in other fields.
A -F
MFE = ∑ t t
B. Forecasting n
Standard Error of Estimate SEE
Forecasting is a process to estimate some future needs that
include the needs in quantity size, quality, time and location 2
∑ At -Ft
required in order to meet the demand for goods or services SEE = √
n-f
(Nasution and Prasetyawan, 2008). Things to watch out for
in forecasting are: Mean Absolute Percentage Error = MAPE
Types of Forecasting
Forecasting Approach Ft
MAPE =[ ] × ∑ |At |
n At
C. Forecasting Data Patterns
F. Verification and Control of Forecasting
Forecasting data patterns include:
Horizontal Pattern (H), occurs when the value of the During the base period (the period when calculating
data fluctuates around a constant average value (such a forecasting), the Moving Range map is used to perform
series "stationary" to the average value). A product that engineering verification and forecasting parameters. After
does not increase or decrease over a certain time is the forecasting method is determined, the Moving Range
included in this type. map is used for testing the stability of the causal system
Seasonal Patterns (S), occurs whenever a series is affecting demand (Nasution & Prasetyawan, 2008).
influenced by seasonal factors (eg a particular year's Moving Range is defined as:
quarter, monthly, or days on a given week). MR = |(y`t – yt) – (y`t-1 – yt-1)|
Δyt = y`t – y
The Moving Range averages are defined as:
𝑀
𝑀𝑅= ∑ I. Material Requirement Planning (MRP)
−
The center line on the Moving Range map is at zero. The
Material Requirement Planning (MRP) is a method used to
upper control limits and lower control limits on the Moving
control raw material inventory at the company. A company
Range map are;BKA = +2.66 𝑀𝑅 dan BKB = - to implement policies in the planning of raw materials must
2.66 𝑀𝑅 have an appropriate calculation in order to avoid any
advantages and disadvantages in raw material inventory
The changes or differences described in the Moving Range (Wahyuni, 2015).
are:
Capacity Planning/
Production Planning
INPUT :
OUTPUT :
1. JIP
1. Primary (Orders)
2. Poduct Structure Material Report
Requirement
3. Bill of Materials Planning (MRP) 2. Action Report
4. Inventory Notes 3. Pegging Report
5. Lead Time
Feedback
Figure 2. MRP Input
Umpan Balik
G. MRP Output b. Lotting is the process to determine the optimal size of
individual orders based on the calculation of net needs.
MRP output simultaneously also reflects the capabilities and c. Offsetting is a process to determine when to do the
characteristics of MRP, ie (Heizer and Render, 2015); order plan in order to meet the needs of the net.
a. Planned Order Schedule is the determination of the d. Explosion is the process of calculating the gross
amount of material requirement and the time of requirement for the level item / component is lower
ordering for the time to come.
b. The Order Release Report is useful for buyers who will J. Lot Sizing Method on MRP
be used to negotiate with suppliers and also useful for
manufacturing managers who will be used to control the Lot For Lot (LFL)
production process. Lot for Lot (LFL) is a booking technique based on
c. Changes to Planning Orders is a reflect order discrete orders and is the simplest technique of all other
cancellation, order reduction, and changing order lot sizing techniques. The use of this technique aims to
quantity. minimize the cost of save, so often used for goods that
d. Performance Report is a display showing the extent to have a very expensive price.
which the system works, in relation to stock void
Fixed Period Requirement (FPR)
H. Step of Making MRP Fixed Period Requirement (FPR) is an ordering
technique over a predetermined period of time, both
Once all the requirements and assumptions are obtained empirically and intuitively. The amount of the order is
properly, the basic steps of the MRP system can work well. not based on the forecast, but by summing up the net
The basic steps in the MRP process are as follows (Nasution requirement in the coming period.
and Prasetyawan, 2008).
a. Netting is a calculation process to determine the number Fixed Order Quantity (FOQ)
of net needs, which amount is the difference between Fixed Order Quantity (FOQ) or fixed order quantity, is
the gross requirement with the state (which is in stock a very specific technique for determining inventory.
and which is being ordered). The lot size determination can be based on empirical or
This research is quantitative research type because this June 255 Box
research is research on a company in the field of paper
production that is precisely about inventory control with
Material requirement planning (MRP) method which is data July 280 Box
of product demand quantity in one year in the form of
numbers rather than narrative. August 155 Box
B. Primary Data
Sept 105 Box
Includes data obtained from the company directly either
through direct observation of the field or interviews and so Oct 350 Box
forth, in other words the primary data is raw data that before
the processed or processed before. The primary data for this
Nov 330 Box
study are:
Cost data of ordering of product material.
Data storage costs of material products. Des 400 Box
Product material price.
B. Product Structure
E. Material Price
Component Qty Satuan Price
Water 150 ml Rp 0,-
Wrapper 5 pcs Rp 0,-
Box 2 pcs Rp 4.000,-
Pulp 4 kg Rp 6.000,-
Enzim ECF 0,05 kg Rp 6.000,-
CaCO3 0,005 kg Rp 7.500,-
PAC 0,05 kg Rp10.500
Tapioca 0,008 kg Rp 8.500,-
NaOH 0,005 kg Rp 3.000,-
NaCl 0,005 kg Rp 9.500,-
Blue Dyes 0,002 kg Rp 10.000,-
Order Cost and Holding Cost are assumed based on the journal Maulana & Setyorini (2014) ie for the order cost of 15% of the
price and for holding cost is 10% of the price.
G. Forecasting
1
Jan 160
2
Feb 235
Mar 3 335
4
Apr 340
5
May 230
Month Demand
Period (t) Forecast (y') y -y' (y-y')^2 │y-y'│ (│y-y'│/y) x 100
(y)
Month Period (t) Demand (y) Forecast (y') y-y' (y-y')^2 │y-y'│ (│y-y'│/y) x 100
Month Period (t) Demand (y) Forecast (y') y-y' (y-y')^2 │y-y'│ (│y-y'│/y) x 100
Aggregate Planning is an operational activity to determine the amount and time of production in the future. Aggregate Planning is
also defined as an attempt to match the supply and demand of a product by determining the exact amount and timing of input,
transformation, and output. Here is the calculation of Aggregate Planning to get the optimum total production:
Based on the smallest forecasting and has recalculated the most optimal production capacity with aggregate planning, it can be
obtained the amount of demand as the Master Schedule Production, which can be seen in the following table:
Jan 252
Feb 252
March 378
Aprl 378
May 252
June 252
2017
July 378
August 252
Sept 252
Okt 378
Nov 378
Des 132
Based on data that has been obtained from forecasting and Aggregate Planning that has been calculated before, in this research
will use MRP method with lot sizing technique.
Here is the result of total cost obtained by using lot sizing technique that is calculation with Lot For Lot.
Cost
No. Material Total Cost
Order Holding
1 IT 180 Paper Rp0 Rp30.775.000 Rp30.775.000
2 Pulp Rp0 Rp38.512.800 Rp38.512.800
3 CaCo3 Rp10.125 Rp0 Rp10.125
4 PAC Rp23.625 Rp0 Rp23.625
5 Tapioca Rp16.200 Rp0 Rp16.200
6 NaOH Rp4.050 Rp0 Rp4.050
7 NaCl Rp16.875 Rp0 Rp16.875
8 Blue Dyes Rp13.500 Rp0 Rp13.500
9 Box Rp6.750 Rp0 Rp6.750
10 Enzim ECF Rp8.100 Rp0 Rp8.100
Total Rp99.225 Rp69.287.800 Rp69.387.025
Here is the result of total cost obtained by using lot sizing technique that is calculation with Economic Order Quantity (EOQ):
Cost
No. Material Total Cost
Order Holding
Here is the total cost obtained by using lot sizing technique that is calculated by Fixedc Order Quantity (FOQ):
Cost
No. Material Total Cost
Order Holding
Here is the total cost obtained by using lot sizing technique that is calculated with Period Order Quantity (POQ):
Cost
No. Material Total Cost
Order Holding
V. ANALYSIS
From the results of several methods of forecasting the above demand, then performed comparison of forecasting results to see
which forecasting method has the smallest error value. Here are the results of several forecasting methods that have been done:
From the table above, it can be seen that the results of some forecasting method, which has the smallest error value is forecasting
with the seasonal winter method that has a SEE value of 96.31, MAPE value of 28.19, and MAD value of 71.5.
Here is a comparison of all calculations of the Material Requirement Planning (MRP) method with methods used by the
Company;
VI. CONCLUSION
REFERENCES