ANALYSIS OF MATERIAL REQUIREMENT PLANNING (MRP) METHOD IN MATERIAL INVENTORY CONTROL IN UPPER STRUCTURE WORK (Gresik Branch BPJS Health Office Construction Project)

Abstract

Material management is often a challenge in an industry, because in the production process often arises obstacles related to material availability. These obstacles can be in the form of shortages or excess stock, which ultimately impacts increased costs, especially in the storage aspect. A strategy or policy is needed so that the production process, especially in the implementation of construction projects, can run smoothly. The research conducted aims to determine the application of the lot sizing method that is able to provide total inventory costs more efficiently and to a minimum. The technique used is Material Requirement Planning (MRP) by applying two lot sizing techniques, namely Lot for Lot (LfL) and Economic Order Quantity (EOQ). The results of the analysis show that the Lot for Lot (LfL) technique is able to provide the lowest inventory costs, which is Rp. 851,139,168.00. Meanwhile, the EOQ technique is the most wasteful method because it gets a total inventory cost of Rp. 912,563,907.00.