E-SCM based on Material Inventory Management uses the Material Requirements Planning Method

Abstract

This study aims to analyze the inventory of materials before the production process begins and design an e-SCM system that aims to facilitate the flow of information on material stocks and product processes from raw materials to finished materials. analysis using the material requirements planning (MRP) method. MRP will analyze material inventory calculations before the production process begins, the system determines the Master Production Schedule and the stock of raw materials for the products needed to make finished materials. Furthermore, the system will convert from the number of Production Master Schedules to production needs and compare the needs with the amount of available stock so as to produce information about the stock of materials that must be ordered. The results of the analysis that MRP can predict stock and reduce the amount of material stock in warehouses reaches 50%. The e-SCM application is expected to facilitate the flow of stock information and integrate between companies with suppliers and customers so that information between suppliers and customers becomes more integrated.