Inventory Control of PDH Socks Raw Materials Using the MRP Method at the Rancamanyar Military Socks SME

Abstract

UMKM Kaos Kaki Militer Rancamanyar is a manufacturing enterprise producing military socks using polyester yarn as the primary raw material, supported by rubber and nylon yarn. Based on the current condition, the company has not implemented a structured inventory planning and control system, resulting in frequent overstock and stockout occurrences. These issues lead to increased inventory costs, production delays, and decreased productivity. This study aims to propose an improved raw material inventory control system using the MRPmethod to minimize the risk of overstock and stockout while reducing total inventory costs. The MRP implementation compares two lot-sizing techniques, namely Lot for Lot (LFL) and Economic Order Quantity (EOQ). The best method is determined based on the comparison of Total Inventory Cost (TIC) during the January to March 2025 planning period. The results indicate that MRP with the LFL technique provides more optimal inventory control performance than EOQ, generating a lower total inventory cost difference of IDR 429.415. Under the LFL technique, raw material orders are scheduled according to weekly production requirements over 12 weeks, with polyester yarn of 126.70 kg, rubber yarn of 14.48 kg, and nylon yarn of 10.86 kg, resulting in 48 orders during the research period. Therefore, the LFL technique is recommended as a more efficient and cost-effective alternative for improving raw material inventory control at UMKM Kaos Kaki Militer Rancamanyar.