IMPLEMENTATION OF RAW MATERIAL INVENTORY CONTROL THROUGH THE MATERIAL REQUIREMENT PLANNING (MRP) METHOD TO ENHANCE COST EFFICIENCY (CASE STUDY AT LESTARI TOFU FACTORY, MADIUN REGENCY)

Abstract

This study aims to examine the practice of controlling raw material inventory at Lestari Tofu Factory and to evaluate the potential for increasing cost efficiency through the application of the Material Requirement Planning (MRP) method. The type of research used is qualitative, with data collected through in-depth interviews conducted with factory owners, who act as key informant. The findings show that the factory uses the conventional method to manage soybean inventory, which results in a total inventory control cost of IDR 481,715,000 in 2024 and a procurement frequency of 49 orders in that year. Through analytical simulation, the adoption of the MRP method—particularly the Lot-for-Lot (LFL) technique—demonstrated a potential cost savings of IDR 8,985,500, representing an efficiency improvement of approximately 2.07%. This improvement was achieved by reducing the ordering frequency to 12 times per year and limiting the quantity of raw material purchased to match the net requirement only, regardless of falling market prices. The study concludes that the application of the MRP method contributes to lowering costs and improving responsiveness to market demand variability.