Minimizing Raw Material Inventory Costs with the Material Requirements Planning Method

Material Requirements Planning (MRP) is a technique in manufacturing and logistics management to effectively schedule and oversee the resources necessary for production procedures. By executing MRP, this research seeks to decrease the expenses related to storing raw materials for a company that manufactures a variety of food items. The organization has successfully met both domestic and global requirements for its goods. Hence, careful planning for each manufacturing phase is essential for improving corporate operations, as it ensures a smooth and continuous workflow. This paper contributes to comparing the Wagner-Whitin algorithm and the Silver-Meal heuristic for lot sizing. The result shows that the Wagner-Whitin algorithm results in the most economical outcome for scheduling each raw material. The total inventory expenses for all raw materials amount to IDR 79,920,930.25.