PROPOSAL FOR GYPSUM AND COAL MATERIAL INVENTORY

PLANNING USING MATERIAL REQUIREMENT PLANNING (MRP)

METHOD AT PT INDOCEMENT TUNGGAL PRAKARSA TBK PLANT
CIREBON
Novia Alamanda1, Ary Avrianto2

Industrial Engineering Department, Faculty of Engineering, Diponegoro University,

Jl. Prof. Soedarto, SH, Kampus Undip Tembalang, Semarang, Indonesia 50275

Abstract

Raw material inventory is an important part of a company's supply chain. In controlling the inventory
of production raw materials, PT Indocement Tunggal Prakarsa Tbk Plant Cirebon applies the Min-Max
method. However, based on endstock data, Gypsum and Coal materials experienced stockouts and
overstock. This results in the production process being hampered and the company needs to incur
additional costs to pile up stock. Therefore, it is necessary to propose a more mature raw material
inventory planning for gypsum and coal materials using Material Requirement Planning (MRP)
methods such as Lot-for-Lot (LFL) and Economic Order Quantity (EOQ). This research aims to obtain
optimal inventory according to company needs and the minimum costs. In this study, calculations are
carried out theoretically and a real approach based on the provisions of the company's purchase
quantity. The calculation results show that the LFL method produces the minimum inventory for both
gypsum and coal, with savings of 3.50% for gypsum and 0.91% for coal. Thus, the LFL method can be
applied by companies to obtain the minimum inventory costs with the amount of inventory in accordance
with the amount of net demand in the related period.

Keywords: Economic Order Quantity, Inventory Control, Lot for Lot, Lot Sizing, MRP

1. Introduction
Industry is the activity of processing raw
materials and utilizing industrial resources so as to
produce goods that have added value or higher
benefits, including industrial services. Currently, there
are 13 cement industry companies that show
increasingly fierce competition between companies.
The tighter competition encourages every company to
optimize its production planning system. A good
planning system will help companies get as much
profit as possible by reducing production costs and
streamlining product results so as to produce
competitive selling prices.
One way to reduce production costs is by
planning raw material inventory because the cost of
raw material inventory affects the cost of production
activities. Raw material inventory planning has an
important role in streamlining the inventory system
and smooth production activities. If the inventory of
raw materials in storage is insufficient, it will hamper
the course of production, while if raw materials exceed
the storage capacity, it will cause losses for the
company. Of course, raw material inventory planning
depends on the demand for cement production every
year. If ignored, it will be fatal to the smooth
production process and also the company's own profit.
* Correspondence Author.
E-mail: noviaalamanda@students.undip.ac.id
PT Indocement Tunggal Prakarsa plant
Palimanan-Cirebon consists of plants 9 and 10 which
produce Ordinary Portland Cement (OPC), Portland
Composite Cement (PCC) and Rajawali products.
This company has 14 departments that support its
operational implementation, consisting of the Mining
Department, Production Department, Mechanical
Department, Electrical Department, Quality Control
Department, Technical Service Department, Supply
Department, Human Resource Department, General
Affairs Department, Dinance and ACC Department,
Audit, MIS, Delivery, and Paper Bag. The department
in charge of planning the inventory of raw materials is
the Supply department.
In controlling production raw materials, the
company has applied the Min-Max method so that the
Supply Department, especially the Inventory Control
Section can find out how much minimum stock must
be in the warehouse in order to meet the production
quantity capacity and find out how much maximum
stock the warehouse can accommodate. However,
based on historical data on the use of Gypsum and
Coal materials, precisely in January 2022, gypsum
stocks are below the minimum stock set by the
company which is 9,082 tons. This resulted in the
production process being hampered because it had to
make adjustments to the production schedule and
cement composition. Then in June, September, and
October 2022, there was an excess of incoming coal
stocks and exceeded the established warehouse
capacity of 38,193 tons. This results in the company
needing to incur additional costs to pile up stock.
Looking at the problems above, it is necessary to
plan the inventory of raw materials more carefully,
especially in gypsum and coal materials so that these
problems do not occur again. Material Requiremnt
Planning (MRP) is one method that can be used to plan
and find out the amount of raw material needs with
which optimum cost is good to determine. Previously,
forecasting will be carried out or forecasting to
forecast future conditions based on data in the past.
This problem is related to inventory planning which
can be used to determine the Production Master
Schedule (JIP) in the next period.
2. Research Methodology
The following is a flowchart of the stages carried
out in this study.
Figure 1. Research Methodology
This research begins by conducting a
preliminary study. Preliminary studies are carried out
with an introduction to the topic of the research
conducted. At this stage describe the existing
conditions of the field and describe indications that
lead to problems found in the Supply Department of
PT ITP Plant Cirebon. After describing the field
conditions, the next stage is to identify the problem.
This stage is a stage to find out the problems that exist
in the company and identify the root of the problem.
This stage is carried out by observing the condition of
the work system at the Supply Department of PT ITP
Plant Cirebon.
The next step is to formulate the problem and
determine the purpose of the study. Problem
formulation is carried out by formulating problems
based on the results of problem identification. The
determination of research objectives is used as a
reference to determine the success rate of this study.
This research has objectives, namely selecting and
determining the right forecasting and Material
Requirement Planning (MRP) methods to be applied
by the company, determining the appropriate
inventory value of gypsum and coal raw materials to
minimize expenditure costs, and providing
suggestions and proposals related to material
inventory planning methods applied by PT Idocement
Tunggal Prakarsa Tbk Plant Cirebon.
Furthermore, a literature study is carried out by
examining the problems to be solved in the research.
In this research, a literature study will be conducted on
inventory, forecasting, and material requirement
planning. This stage is also carried out to find out what
data is needed in data collection. The data obtained
from this study are primary data in the form of
historical data on cement demand at PT ITP Plant
Cirebon for the last 12 months (January-December
2022), data on ordering costs and raw material storage
costs, raw material lead time data, raw material safety
stock data, material end stock data in 2022, and raw
material storage capacity. In addition, secondary data
were also obtained in the form of profiles and
organizational structures of PT ITP Plant Cirebon,
cement production process flows, raw material
ordering process flows, and raw material inventory
policies. After that, compare the cost calculation
needed between the lot sizing method used in the study
with the lot sizing method applied by the company.
After processing the data, the next stage is the
analysis and discussion stage. This stage is carried out
by analyzing the results of data processing that has
been made. The analysis is carried out based on the
results of lot sizing and the calculation of inventory
costs resulting from each method which aims to
determine whether there is an impact from the
application of the method used.
At the data processing stage, the data that has
been collected is processed using forecasting and MRP
methods. The Forecasting method is used to analyze
the plot pattern of historical data on cement demand
for the last 1 year (January-December 2022).
Furthermore, demand forecasting for the next 1 year is
carried out based on these historical data and
measuring the accuracy of forecasting results with 3
verification methods so that forecasting methods that
have the smallest error value can be analyzed and will
be used as a basis for planning raw material needs.
While the MRP method is used to make material
planning based on the cement bill of material (BOM)
and cement production master schedule (JIP).
Furthermore, calculations are carried out to determine
the optimal individual order size based on the results
of the calculation of net needs using the LFL and EOQ
methods.
The final stage is conclusions and suggestions.
This stage is carried out by making conclusions based
on the results of all stages carried out in accordance
with the objectives set at the beginning of the study. In
addition, providing what is expected to be a
consideration for companies in planning gypsum and
coal materials in the future.
3. Result and Discussion Mei-22 0 13821.047
Jun-22 8964.712 14287.759
3.1 Data Collection
Jul-22 8490.503 12469.262
Data collection is a technique used by Ags-22 8500 9560.262
researchers to collect data, and data collection Sep-22 17417.131 15831.393
instruments are tools chosen and used by researchers Okt-22 8610.278 14879671
Nov-22 968.082 6910.562
in their activities to collect data so that these activities
Des-22 17983.078 16659.64
become systematic and easier (Ridwan, 2004). Here Coal Jan-22 31939.51 29265.75
are the data needed for data processing. Feb-22 38602.02 34766.77
3.1.1 Historical Demand Data Mar-22 34448.9 37579.67
The historical data used is the Cirebon Cement Apr-22 30923.1 32243.77
Mei-22 30960.7 17217.47
Plant Demand Data for 2022 (January-December Jun-22 51411.04 36858.51
2022). This data is used as a reference to determine Jul-22 30156.58 30307.09
future needs. The following is historical data on Ags-22 21897.08 15989.17
cement demand in the period January - December Sep-22 45969.72 25166.89
Okt-22 61852.48 42927.2
2022. Nov-22 22574.24 31679.44
Des-22 31679.44 31814
Table 1. Historical Data on Cement Demand in 2022
Periode Ton It can be seen that in January 2022, gypsum
Jan-22 327.318,71
stocks are below the minimum stock set by the
Feb-22 286.273,88
Mar-22 350.479,04 company which is 9,082 tons. Then in June,
Apr-22 215.622,58 September, and October 2022, there was an excess
Mei-22 270.946,84 of incoming coal stocks and exceeded the
Jun-22 321.848,50
established warehouse capacity of 38,193 tons.
Jul-22 324.117,07
Ags-22 346.582,31 3.1.4 Inventory Cost
Sep-22 351.820,83 Inventory costs incurred by PT ITP Plant
Okt-22 291.954,42 Cirebon include the following.
Nov-22 291.909,10
Des-22 284.196,32
Total 3.618.069.60 Table 5. Inventory Cost
Material Materia Ordering Cost Storage Cost
Costl/Ton
3.1.2 Lead Time Data Gypsum Rp390.742,62 Rp 115,886,020 RP19.537,131
The following is the lead time data for raw Coal Rp518.042,97 Rp155,412,891 Rp25.902,1485
materials ordered by PT ITP Plant Cirebon.
3.1.5 Bill of Material (BOM)
Table 2. Raw Material Lead Time A BOM is a complete, formal, and structured list
Material Lead Time (Month) of components that lists hierarchical membership and
Gypsum 1
quantity relationships from raw materials to parts,
Trass 0,5
Clinker 0 components to final products (Zhang, 2018). The
Limestone 0 composition of coal in making cement is 12% and
Clay 0 gypsum is 3.2%. Here is the BOM of cement products
Silica Sand 0 produced by PT ITP Plant Cirebon.
Laterite 0
Coal 1

3.1.3 Safety Stock and Endstock Data

Safety stock and end stock of raw materials are
used to ensure and maintain that the company still has
stock To reduce the risk of stockout or overstock, the
company sets the amount of safety stock for gypsum
and coal raw materials as follows.
Figure 2. BOM
Table 3. Safety Stock
Material Safety stock (ton) 3.2 Data Processing
Gypsum 2614,51 3.2.1 Forecasting
Coal 9980,36 Forecasting or experience is the science of
predicting future events (Indah &; Rahmadani, 2018).
Table 4. Endstock The purpose of forecasting is to predict future
Material Bulan Received End Stock conditions by finding and measuring some important
Jan-22 9167.048 6723.224
free variables and their effects on observed non-free
Feb-22 16322.38 15424.604
Gypsum variables (Heizer & Render, 2015). In addition, the
Mar-22 6407.492 12596.096
Apr-22 16844.951 21638.047 purpose of forecasting is to meet the needs of making
 long-term planning (Haming &; Nurnajamuddin,
2007). By using the right forecasting techniques,
companies can improve operational efficiency,
increase customer satisfaction, and improve their
financial performance.
In this study, the type of forecasting used is
quantitative because it uses historical patterns to
forecast in the future. The first step in the experience
is to plot the data. From the results of the data plot that
has been done, it is found that the data tends to be
Figure 3. Moving Range Graphs
stationary so that it can be solved using moving
average and exponential smoothing methods. The
Table 7. JIP
forecasting methods used in this study are Single
Periode Forecast JIP (ton)
Moving Average, Weighted Moving Average, Single Jan-22 313292.596 313293
Exponential Smooting, and Double Exponential Feb-22 313292.596 313293
Smoothing. Mar-22 313292.596 313293
After choosing an alternative method, the next Apr-22 313292.596 313293
step is to perform a verification test by counting errors Mei-22 313292.596 313293
(MSE, MAD, and MAPE) from the methods used. Jun-22 313292.596 313293
This stage is used to determine the selected forecasting Jul-22 313292.596 313293
method (Hartini, 2010). Here's a comparison of the Ags-22 313292.596 313293
error values of each method shown in Table 6. Sep-22 313292.596 313293
Okt-22 313292.596 313293
Nov-22 313292.596 313293
Table 6. Error Value Comparison Des-22 313292.596 313293
Error 3 SMA 5 SMA WMA SES DES
MSE 2.545.2 1.637.62 243.858 1.966.59 2.139.16
67.952 3.554,5 .4941,3 9.202,9 1.800,8 3.2.2 Material Requirement Planning
MAD 43.677, 39.474,9 40.612, 35.670,5 39.307,6 Based on JIP and Bill of Materials, the Gross
8 7 requirement (GR) of each cement material can be
MAPE 15,71% 12,405% 14,732 13,10% 13,99%
%
determined. The number of orders for overall raw
material needs can be known based on the number of
Based on Table 6. It can be seen that the Single requests for finished products and then derived based
Moving average method with 5 periods of movement on product structure and according to the level of use
has the smallest error value, namely the MAPE of these raw materials. The following are the GRs of
method has an error of 12.405%, the MAD method gypsum and coal shown in Table 8.
produces an error of 39,474.9, and the MSE method Before ordering raw materials, companies must
produces an error of 1,637,623,554.5. So that the know exactly the number of raw materials needed and
selected forecasting method is the Single Moving the time when they are needed for the production
average method with 5 periods of movement. process, as well as the number of raw materials
Furthermore, validation of forecasting results from the ordered according to the lot size. There are several
Single Moving average method with 5 periods of methods that companies can apply to determine lot
movement with Moving Range was carried out. size (lotting), but in this study the author provides 2
Based on the graph shown in Figure 3. that can lotting methods, namely Lot-for-lot (LFL) and
be seen that there is no data that is out of control. So Economic Order Quantity (EOQ).
that the data can be said to be valid and can be used for a. Lot for lot (LFL)
forecasting. In addition, JIP for the next 12 periods is Lot for lot is the simplest sizing technique,
also obtained as shown in Table 7. which provides inventory according to its net
needs and aims to minimize unit storage costs to
zero because lot sizes are in accordance with net
needs (Hartini, 2010).

Table 8. Gross Requirement

Beban
Periode Kebutuhan
1 2 3 4 5 6 7 8 9 10 11 12
Cement
- 313293 313293 313293 313293 313293 313293 313293 313293 313293 313293 313293 313293
POR
10025. 10025. 10025. 10025. 10025. 10025. 10025. 10025. 10025. 10025. 10025. 10025.
Gypsum 3,2%
376 376 376 376 376 376 376 376 376 376 376 376
37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595.
Coal 12%
16 16 16 16 16 16 16 16 16 16 16 16
 In lotting calculations using the Lot for lot = Rp19.537,13 x 62710,77
method, it is assumed that the lead time for = Rp 1,225,188,595.99
gypsum and coal raw materials is 1 month and • Ordering Cost
comes from one supplier only. The following is = Ordering Cost x Ordering Frequency
a theoretical determination of lot size by the Lot- = Rp115,886,020.00 x 10
for-lot (LFL) method for gypsum and coal = Rp1.158.860.200
materials shown in Table 9. • Material Cost
The following is an example of calculating = Material Cost/ton x POP
gypsum inventory costs using the LFL method. = Rp309.742,62 x 109056.23
• Storage Cost = Rp37.602.729.474,32
= Storage Costss x POH • Total Cost
= Rp19.537,13 x 4019,75 = Rp44,996,964,059.93
= Rp78,534,368.65 c. Company Methods
• Ordering Cost The company has a booking policy where the
= Ordering Cost x Ordering Frequency order quantity is fixed. The company sets the
= Rp115,886,020.00 x 11 quantity for gypsum material at 8,200 tons /
= Rp1,274,746,220.00 order and orders are made 2 times a month. As
• Material Cost for coal material, the company places orders with
= Material Cost/ton x POP a quantity of 12000 tons / order and orders are
= Rp309.742,62 x 106259,39 placed 3 times a month. When the number of
= Rp41,520,071,159.04 orders is still less than the estimated gross
• Total Cost requirement in the next period, the company will
= Rp42,873,351,747.69 order more, and still adjust the multiple order
b. Economy Order Quantity (EOQ) quantity. The quantity is adjusted to the capacity
Is a method used to determine inventory of the raw material transport ship. Here are the
order quantity that minimizes inventory costs calculations in determining lot size and
and inventory order costs, this method is also inventory cost calculations using company
based on the assumption that inventory is policies shown in Table 11.
continuous with stable demand (Russell &; The following is an example of calculating
Taylor, 2011). In lotting calculations using the the cost of gypsum inventory using the
Economy Order Quantity method, it is assumed company's method.
that the lead time for gypsum and coal raw • Storage Cost
materials is 1 month and comes from one = Storage Cost/ton x POH
supplier only. The following is the determination = Rp19.537,13 x 83221.56
of lot size using the Economic Order Quantity = Rp1,951,392,133.61
(EOQ) method theoretically for gypsum and coal • Ordering Cost
materials shown in Table 10. = Ordering Cost x Ordering Frequency
The following is an example of calculating = Rp115,886,020.00 x 7
gypsum inventory costs using the EOQ method. = Rp811,202,140.00
• Storage Cost
= Storage Cost/ton x POH

Table 9. LFL
Material PER 0 1 2 3 4 5 6 7 8 9 10 11 12
10025.3 10025.3 10025.3 10025. 10025. 10025. 10025. 10025. 10025. 10025. 10025. 10025.
Gypsum GR
76 76 76 376 376 376 376 376 376 376 376 376
16659.6
POH 4019.75 0 0 0 0 0 0 0 0 0 0 0
4
10025.3 10025.3 10025. 10025. 10025. 10025. 10025. 10025. 10025. 10025. 10025.
NR 6005.63
76 76 376 376 376 376 376 376 376 376 376
10025.3 10025. 10025. 10025. 10025. 10025. 10025. 10025. 10025. 10025.
POP 6005.63
76 376 376 376 376 376 376 376 376 376
10025.3 10025.3 10025. 10025. 10025. 10025. 10025. 10025. 10025. 10025.
POR 6005.63 -
76 76 376 376 376 376 376 376 376 376
Coal 37595.1 37595.1 37595.1 37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595.
GR
6 6 6 16 16 16 16 16 16 16 16 16
POH 31814 0 0 0 0 0 0 0 0 0 0 0 0
15761.5 37595.1 37595.1 37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595.
NR
2 6 6 16 16 16 16 16 16 16 16 16
37595.1 37595.1 37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595.
POP
6 6 16 16 16 16 16 16 16 16 16
37595.1 37595.1 37595.1 37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595.
POR
6 6 6 16 16 16 16 16 16 16 16
 • Material Cost EOQ Rp 226,427,230,401.95
= Material Cost/ton x POP Company Rp 230,478,692,111.40
= Rp309.742,62 x 114800.00
= Rp44,857,252,776.00 Based on the inventory cost recapitulation table
• Total Cost in each lotting method, it is found that the total cost of
= Rp47,619,847,049.61 gypsum material inventory using the LFL method is
3.3 Inventory Cost Analysis Rp42,873,351,747.69, the EOQ method is
Inventory cost analysis is carried out in order to Rp44,996,964,059.93, and the company is
compare the condition of the company's old inventory Rp47,619,847,049.61. Inventory costs in each coal
system with the new one after applying the MRP material lotting method are Rp224,265,088,837.68
method. The use of the MRP method is carried out as using the LFL method, Rp226,427,230,401.95 using
an effort in planning and controlling production raw the EOQ method, and Rp230,478,692,111.40 using
materials with the lowest level of total inventory costs. the company's method.
The following is Table 12. recapitulation of inventory Based on these results, it can be seen that the
costs of gypsum and coal raw materials using the MRP smallest cost of both gypsum and coal materials is the
Lot for lot and EOQ methods. LFL method. When compared to the company's
method, there is a cost savings of 3.50% in gypsum
Tabel 12. Inventory Cost Recapitulation costs. Meanwhile, in coal inventory costs, there is a
Material Lotting Cost cost savings of 0.91%. Based on the results of these
Gypsum LFL Rp 42,873,351,747.69 calculations, it can be proposed to companies to use
EOQ Rp 44,996,964,059.93 the LFL method in planning gypsum and coal needs
Company Rp 47,619,847,049.61
because the LFL method produces the minimum
Coal LFL Rp 224,265,088,837.68
inventory costs.

Tabel 10. EOQ

Material PER 0 1 2 3 4 5 6 7 8 9 10 11 12
10025.3 10025.3 10025.3 10025. 10025. 10025. 10025. 10025. 10025. 10025. 10025. 10025.
Gypsum GR
76 76 76 376 376 376 376 376 376 376 376 376
16659.6 6660.4 7540.7 8420.9 9301.2 10181. 1036.3 1916.5 2796.8
POH 4019.75 4900.00 5780.24 156.10
4 9 4 8 3 48 5 9 4
4245.1 3364.8 2484.6 1604.3 9869.2 8989.0 8108.7
NR 6005.63 5125.38 724.15
3 9 4 9 8 3 8
10905.6 10905.6 10905. 10905. 10905. 10905. 10905. 10905. 10905. 10905.
POP
2 2255 62255 62255 62255 62255 62255 62255 62255 62255
10905.6 10905.6 10905.6 10905. 10905. 10905. 10905. 10905. 10905. 10905.
POR
2 2 2 62 62 62 62 62255 62255 62255
Coal 37595.1 37595.1 37595.1 37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595.
GR
6 6 6 16 16 16 16 16 16 16 16 16
POH 31814 15459 20344 3989 8874 13759 18644 2289 7174 12059 16944 589 5474
15761.5 22136.2 17251.1 33606. 28721. 23836. 18951. 35306. 30421. 25536. 20651. 37006.
NR
2 2 8 23 19 15 10 16 12 08 03 09
42480.2 21240.1 42480. 42480. 42480. 21240. 42480. 42480. 42480. 21240. 42480.
POP
0 0 20 20 20 10 20 20 20 10 20
42480.2 21240.1 42480.2 42480. 42480. 21240. 42480. 42480. 42480. 21240. 42480.
POR
0 0 0 20 20 10 20 20 20 10 20

Tabel 11. Company Methods

Material PER 0 1 2 3 4 5 6 7 8 9 10 11 12
10025.3 10025.3 10025.3 10025. 10025. 10025. 10025. 10025. 10025. 10025. 10025. 10025.
Gypsum GR
76 76 76 376 376 376 376 376 376 376 376 376
16659.6 6660.4 7540.7 8420.9 9301.2 10181. 1036.3 1916.5 2796.8
POH 4019.75 4900.00 5780.24 156.10
4 9 4 8 3 48 5 9 4
4245.1 3364.8 2484.6 1604.3 9869.2 8989.0 8108.7
NR 6005.63 5125.38 724.15
3 9 4 9 8 3 8
10905.6 10905.6 10905. 10905. 10905. 10905. 10905. 10905. 10905. 10905.
POP
2 2255 62255 62255 62255 62255 62255 62255 62255 62255
10905.6 10905.6 10905.6 10905. 10905. 10905. 10905. 10905. 10905. 10905.
POR
2 2 2 62 62 62 62 62255 62255 62255
Coal 37595.1 37595.1 37595.1 37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595.
GR
6 6 6 16 16 16 16 16 16 16 16 16
POH 31814 15459 20344 3989 8874 13759 18644 2289 7174 12059 16944 589 5474
15761.5 22136.2 17251.1 33606. 28721. 23836. 18951. 35306. 30421. 25536. 20651. 37006.
NR
2 2 8 23 19 15 10 16 12 08 03 09
42480.2 21240.1 42480. 42480. 42480. 21240. 42480. 42480. 42480. 21240. 42480.
POP
0 0 20 20 20 10 20 20 20 10 20
42480.2 21240.1 42480.2 42480. 42480. 21240. 42480. 42480. 42480. 21240. 42480.
POR
0 0 0 20 20 10 20 20 20 10 20
 The lot for lot method adjusts the net requirement
order to the amount of net need that needs to be met in
that period. This method has the advantage that it can
minimize storage costs because the amount ordered is
equal to the amount needed, so there is no inventory
that incurs costs.
4. Conclusion
From the results of data processing and analysis
carried out, the following conclusions can be made:
1. Based on the data processing that has been
carried out, it can be concluded that the
Material Requirement Planning (MRP)
method can be applied to the company. In
determining the grass requirements on MRP
can be done by forecasting method 5 Single
Moving average, from the calculation results
the method has the smallest error value of
12.405% when compared to other methods.
The gypsum and coal inventory control
planning carried out in this study uses two
MRP methods, namely Lot for lot and EOQ,
in addition to using the methods applied by
the company. With the LFL method, gypsum
inventory costs of Rp42,873,351,747.69 and
coal costs of Rp224,265,088,837.68 were
obtained. with the EOQ method, gysum
inventory costs of Rp44,996,964,059.93 and
coal costs of Rp226,427,230,401.95 were
obtained. Meanwhile, if you use the method
applied by the company, gypsum inventory
costs are Rp47,619,847,049.61 and coal costs
are Rp230,478,692,111.40. The minimum
inventory cost is generated by the LFL
method, this method results in gypsum cost
savings of 3.50% and coal of 0.91%.
2. Based on the results of forecasting and
calculation of lotting techniques, the results
for ordering gypsum and coal raw materials
per month are shown in Table 13.
3. Based on data processing using MRP, lot
sizing calculation using LFL method results
in the minimum cost. Therefore, it can be
proposed to the company to apply the method
to obtain the minimum inventory cost where
the order amount adjusts to the net needs of
the relevant period.
5. Bibliography
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Table 13. LFL Calculation Results

Material Periode
1 2 3 4 5 6 7 8 9 10 11 12
Gypsum 6005.6 10025. 10025. 10025. 10025. 10025. 10025. 10025. 10025. 10025. 10025.
3 376 376 376 376 376 376 376 376 376 376
Coal 37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595. 37595.
16 16 16 16 16 16 16 16 16 16 16