Analysis of Material Requirement Planning for Pentolite Production (Case Study: Indonesia’s Explosives Manufacturing)
Keywords:
EOQ, LFL, MRP, POQAbstract
A company engaged in manufacturing explosives produces several products, one of which is pentolite. This product is commonly used as primary blasting material for use in mining operations. Fluctuating coal exports affect the demand for pentolite, in addition to the dominant source of imported raw materials, which requires companies to make proper planning for the needs of pentolite raw materials. Material Requirement Planning (MRP) is an inventory planning and scheduling technique used to manage the manufacturing process, this method is appropriate because it can optimize inventory, reduce the risk of delays and increase efficiency. Several lot- sizing techniques will be used in this study to obtain the optimal order size at the lotting stage in MRP. The techniques used are lot for lot (LFL), economic order quantity EOQ), and period order quantity (POQ). The results show that for both P and T raw materials, the lot-sizing technique that gives the smallest inventory cost results is to use the period order quantity.
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