" PIZZA RAW MATERIAL INVENTORY PLANNING
TYPE M-O (R) WITH MRP "
(Case Study at XYZ Restaurant Pizza Jakarta)
Industrial Engineering Program Faculty of Engineering, University of Mercu Buana
South Meruya Jl Raya, Kembangan, Jakarta, 11650
Email : Ryanvirgounpermana@gmail.com
ABSTRACT
XYZ pizza restaurant is a restaurant franchise (franchise) which is engaged in the
international food industry specializing serves fast food (fast food) in the form of toasted
bread (pizza) with the content of sauces, vegetables, meat and cheese topping in each
topping. Pizza MO (r) is one of the most dominant Pizza ordered by the consumer, in
undergoing an operational common obstacle faced is in the process of ordering and
procurement of raw materials that do not correspond to the actual situation. Consequently,
in carrying out its production operations there several times orders and stock in excess of
actual demand so may result in losses in excess costs. It can be concluded that the
restaurant is still no shortage and difficulties in implementing the supply planning in
production. Forecasting method that has been done (linear, constant and quadratic), with
all the consideration and look of the actual data that occurred on the chosen method
Restaurant Linear used for forecasting Pizza MO (r). Of the four methods Material
Requirement Planning (MRP), namely, (LFL, EOQ, POQ, LUC) the size of the lot sizing
gives various results and save costs varying messages different, and POQ MRP method
theoretically gives the minimum total cost.
Keywords: Raw material inventory, forecasting, MRP (Material Requirement Planning),
Pizza MO (r).
1
2
5. The raw material requirements planning
(MRP) in this study was conducted using
lot size:
 Lot for Lot (LFL)
 Economic Order Quantity (EOQ)
 Period Order Quantity (POQ)
 Least Unit Cost (LUC)
1.INTRODUCTION
Restaurant Pizza XYZ is a restaurant franchise
(franchise) which is engaged in the international
food industry specializing serves fast food (fast
food) in the form of toasted bread (pizza) with the
contents of sauces, vegetables, meat and cheese
topping in each topping. Restaurant Pizza XYZ is
founded in 2007 in Jl.Pos Pengumben Raya, West
Jakarta. In undergoing an operation often faced
obstacles are in the process of ordering and
procurement of raw materials that do not
correspond to the actual circumstances that occur
in living production. As a result, In carrying out
its production operations there several times order
and procurement (stock) in excess of actual
demand so may result in losses in excess costs. So
there is a shortage and difficulties in production
planning. Products that will be discussed is a
product of the pizza type of MO (R) which is the
dominant variant of the product from Restaurant
Pizza XYZ. This pizza has a composition: Dough
(bread), Sauce (Sauce), Beef Burger (Beef
Chopped), saussage (sausage) and Cheese mix
(cheese) that all the raw materials in the message
in several companies in Jakarta and there is a
direct import from country New Zealand (New
Zealand).
1.4 RESEARCH OBJECTIVES
1. Determine the appropriate forecasting
method for estimating a minimum of
request that will come.
2. Determine the MRP method in
accordance with the raw material
requirements planning pizza MO (R) with
the appropriate MRP method.
3. Select the minimum inventory cost.
2. LITERATURE
2.1 Definition of Production
In general, production / operations is an activity
associated with the creation / manufacture of
goods, services, or a combination thereof, through
the transformation process of input resources and
production of the desired output operations
(Herjanto, 1999). The term production tends to be
associated with the plant, machinery or assembly
lines because at first the techniques and methods
in production management is used to operate the
plant or other assembly activities, but on the other
there also can be produced even if not in the form
of finished goods or products that could be called
by services (Herjanto, 1999).
1.2 FORMULATION OF THE PROBLEM
1. How to determine the appropriate
planning forecasting method to estimate
the minimal demand that will come.
2. Can do and make pizza raw material
requirements planning MO (R) with the
appropriate MRP method.
1.3 LIMITATION OF PROBLEMS
1. Discussion of issues only concerning the
raw material for making pizza products
MO (R) in the XYZ pizza restaurant.
2. The production process is observed
production of pizza types MO (R).
3. The data used for forecasting methods
only 6 months in 2014, ie in January 2014
- June 2014. This is because every week a
different order quantity and order booking
takes place every 1 week so that the data
used was for 24 weeks.
4. The forecasting method used is the
method of Linear, quadratic method
Constant and methods.
2.1.1 Definition of Inventory
Inventories are a number of materials, supplied
parts and materials in the process contained in
persuhaan for the production process, as well as
finished goods / products provided to meet the
demand from consumers or subscription at any
time (Rangkuti, 2002). Inventories have important
functions that can boost a company's operational
efficiency. With the supply of the production
process is not hampered by a shortage of raw
materials. In addition, the procedure for obtaining
and storing raw materials needed can be
implemented with minimum cost (Bedworth and
Bailey, 1982).
2
3
•
2.2 Definition of Forecasting
Interviews
Forecasting is an allegation against future demand
based on several variables forecasters, often based
on time series data or historical. Activities
forecasting is a business function that is trying to
estimate the sale and use of the products so that
the products can be created role in the right
quantity. (Gaspersz, 2004).
Conducting interviews to the Management
PIC restaurants Pizza XYZ.
2.3 Definition of
Planning (MRP)
The study was conducted in Spanish Pizza XYZ
Jakarta. This company is a company engaged in
the industry of fast food restaurants (fast food). In
this company underwent its production operations
using the system Make to order. Below is a flow
diagram of research used by the author.
Material
•
Observation
Make observations to the restaurant to see
how the production process runs.
Requirement
Material arrangement has the sense of a regulation
that covers issues related to the inventory system
at the same time information systems, material
procurement system in order to achieve timely,
right quantity, materials, and appropriately priced.
The control system then known as the raw
material requirements planning or in foreign terms
is known as MRP (Material Requirement
Planning), (Yamit, 1996). Material Requirement
Planning (MRP) can be defined as a technique or
set of systematic procedures in the determination
of the quantity and time in the process control
requirements of the material components of
demand are interdependent (Dependent demand
items).
2.4 Purpose MRP
An MRP system is basically aimed to design a
system capable of generating information to
support appropriate action in the form of
cancellation
of
orders,
reordering,
or
rescheduling. This action is a hold at the same
time to make purchases and / or production. The
purpose of the raw material requirements planning
is as follows (Yamit, 1996)
a) Ensuring availability of material, item, or
component when it needs to meet the
master production schedule and ensure the
availability of the finished product for the
consumer.
b) Keep inventory levels at a minimum
condition
c) Plan the activities of shipping, and
purchasing activities
3.RESEARCH METHODOLOGY
The research method used in this research is the
practical work:
3
4
4. DATA COLLECTION AND PROCESSING
22
23
24
300
Data requests Pizza MO (r) for 6 months (24 weeks) in 2014 at XYZ
Restaurant Pizza is as follows:
Total
95
96
99
2359
Table 4.1 Demand Pizza MO (r) (period January 2014-June 2014)
Periode
Bulan
Januari
Febuary
Maret
April
Mei
Juni
Periode
Demand
Minggu
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
4.1 Product Structure Data (Bill Of Materials)
One of the data is needed for MRP is a must to know the components or
product structure that will be in production.
110
100
105
100
99
88
65
63
103
102
101
105
102
99
95
105
106
115
90
118
98
Table 4.2 Data structure of the product Pizza M-O (r)
OR/R ML-O
Bahan-Bahan
Dough (R)
Sauce
Beef Burger
Sausage
Cheese Mix
4
Satuan
Price
Balls
Batch
Kg
Kg
Batch
IDR 1,316
IDR 55,247
IDR 31,201
IDR 42,961
IDR 1,290,870
Berat Bersih
1
4500
1000
1000
25640
Ball
Gr
Gr
Gr
Gr
1
Jumlah Bahan
1
68
40
40
90
Porsi
Satuan
Ball
Gr
Gr
Gr
Gr
IDR 12,089
Total
IDR 1,316
IDR 835
IDR 1,248
IDR 1,718
IDR 4,531
5
4.2 Costs of Raw Material Inventory
Here is a table of data Under the cost structure of each raw material on Pizza MO (r).
Table 4.3 Structure of Product Raw Material Costs Pizza Type MO (r)
BIAYA PESAN
BIAYA SIMPAN
TOTAL
IDR
IDR
IDR
50,000
604
50,604
Dough ® (LEVEL 1)
BIAYA PESAN IDR
BIAYA SIMPAN IDR
TOTAL
IDR
50,000
66
50,066
Sauce (LEVEL 1)
BIAYA PESAN IDR
BIAYA SIMPAN IDR
TOTAL
IDR
50,000
21
50,021
Beef Burger (LEVEL 1)
BIAYA PESAN IDR
BIAYA SIMPAN IDR
TOTAL
IDR
50,000
39
50,039
Sausage (LEVEL 1)
BIAYA PESAN IDR
BIAYA SIMPAN IDR
TOTAL
IDR
50,000
54
50,054
Cheese Mix (LEVEL 1)
BIAYA PESAN IDR
BIAYA SIMPAN IDR
TOTAL
IDR
50,000
45
50,045
Pizza M-O (LEVEL 0)
Tabel 4.4 Fourth Error Value Analysis Forecasting Method
Metode MAD
Linier
-1.185
Konstan
0.94
Kuadratik 207.82
MSE
183.13
-59.54
4.01
5
MAPE
-5.2
0.40
15.06
SSE
14.13
8.06
5.94
6
Pe riode
Grafik Tingkat Kesalahan
Peramalan
250
200
150
100
50
0
-50
-100
Linier
Konstan
Kuadratik
MAD
MSE
MAPE
SSE
-1.185
183.13
-5.2
14.13
0.94
-59.54
0.40
8.06
207.82
4.01
15.06
5.94
Graph 4.1 Fourth Error Value Analysis Forecasting
Method
Based on the three forecasting methods used, the
accuracy of forecasting the first value the smallest
mistake is the constant method, the method of
quadratic and linear method. However, with a
view of some of the considerations that exist and
the actual demand data that exist in every week is
different, the results of discussions with the
management of PIC Restaurant Pizza, the linear
method will be used to provide a minimum safety
stock to existing demand. So with that, for
forecasting products Pizza MO (r) will be using a
linear method.
T
1
2
Januari
3
4
5
6
Fe buary
7
8
9
10
Mare t
11
12
13
14
April
15
16
17
18
Me i
19
20
21
22
Juni
23
24
Forecast
95
95
96
96
96
96
97
97
97
98
98
98
98
99
99
99
100
100
100
100
101
101
101
102
JIP
95
95
96
96
96
96
97
97
97
98
98
98
98
99
99
99
100
100
100
100
101
101
101
102
The following table will be used as a reference for
analyzing the results of the data pengolahaan
Material Requirement Planning (MRP) products
Pizza MO (r) in the XYZ Restaurant Pizza,
Jakarta.
Table 4.6 Total Cost Book & Storage Cost
Method LFL
4.3 Requirements Planning Based on MRP
TOTAL BIAYA UNTUK METODE L4L
Biaya
Biaya
Material
Pesan
Simpan
total
Pizza M-O
IDR
IDR
(r)
1,200,000
1,200,000
IDR
IDR
DOUGH
1,200,000
1,200,000
IDR
IDR
IDR
SAUCE
1,200,000
249
1,200,249
BEEF
IDR
IDR
IDR
BURGER
1,200,000
1,307
1,201,307
IDR
IDR
IDR
SAUSSAGE
1,200,000
1,810
1,201,810
CHEESE
IDR
IDR
IDR
MIX
400,000
584
400,584
IDR
IDR
IDR
TOTAL
6,400,000
3,950
6,403,950
MRP have parts that affect the calculation,
namely: product structure data, inventory data,
and the master production schedule data obtained
from the results of forecasting has been done
before:
Table 4.5 Results of Forecasting Demand Pizza
MO (r) 2015
6
7
Table 4.7 Total Cost Book & Storage Cost
Method EOQ
Table 4.10 Total Cost Book & Storage Costs all
MRP method
TOTAL BIAYA UNTUK METODE EOQ
Material
Pizza M-O (r)
DOUGH
SAUCE
BEEF
BURGER
SAUSSAGE
CHEESE
MIX
TOTAL
Biaya Pesan
IDR
950,000
IDR
300,000
IDR
850,000
IDR
1,150,000
IDR
1,150,000
IDR
400,000
IDR
4,800,000
Biaya
Simpan
IDR
881,350
IDR
272,316
IDR
459
IDR
1,307
IDR
1,810
IDR
584
IDR
1,157,826
TOTAL BIAYA SEMUA METODE
total
IDR
1,831,350
IDR
572,316
IDR
850,459
IDR
1,151,307
IDR
1,151,810
IDR
400,584
IDR
5,957,826
Pizza M-O (r)
DOUGH
SAUCE
BEEF
BURGER
SAUSSAGE
CHEESE
MIX
TOTAL
Biaya
Simpan
IDR
713,324
IDR
291,060
IDR
249
IDR
1,307
IDR
1,810
IDR
584
IDR
1,008,334
Biaya Simpan
L4L
IDR 6,400,000
IDR
3,950
IDR 6,403,950
EOQ
IDR 4,800,000
IDR 1,157,826
IDR 5,957,826
POQ
IDR 4,900,000
IDR 1,008,334
IDR 5,908,334
LUC
IDR 6,050,000
IDR
IDR 6,134,338
84,338
TOTAL
Based on the three forecasting methods used to
predict the pizza, the forecasting accuracy of the
smallest error value is constant method. However,
with a view of some of the considerations that
exist and the actual demand data that exist in
every week is different, the results of discussions
with the management of PIC Restaurant Pizza, the
linear method will be used to provide a minimum
safety stock to existing demand. So with that, for
forecasting products Pizza MO (r) will use a
linear method
TOTAL BIAYA UNTUK METODE POQ
Biaya Pesan
IDR
600,000
IDR
300,000
IDR
1,200,000
IDR
1,200,000
IDR
1,200,000
IDR
400,000
IDR
4,900,000
Biaya Pesan
5. ANALYSIS AND RESULTS
Table 4.8 Total Cost Book & Storage Cost
Method POQ
Material
METODE
total
IDR
1,313,324
IDR
591,060
IDR
1,200,249
IDR
1,201,307
IDR
1,201,810
IDR
400,584
IDR
5,908,334
Based on the results obtained by processing the
overall cost of the fourth technique above lot size
looks so different from each method used. And
can be seen in the table that the method EOQ
obtain total lowest cost material message with £
4,800,000, - but has a cost savings and highest
among other methods, namely, £ 1,157,826, -. In
the method shown POQ total cost of messaging £
4,900,000, - and the cost savings and £ 1,008,334,
- In the end that resulted in the cost of providing
the minimum theoretical material is POQ method
to be used in the planning of raw material
inventory Pizza kinds MO (r).
Table 4.9 Total Cost Book &
Storage Cost Method LUC
TOTAL BIAYA UNTUK METODE LUC
Biaya
Biaya
Material
Pesan
Simpan
total
Pizza M-O
IDR
IDR
(r)
1,200,000
1,200,000
IDR
IDR
IDR
DOUGH
1,200,000
75,900
1,275,900
IDR
IDR
IDR
SAUCE
850,000
459
850,459
BEEF
IDR
IDR
IDR
BURGER
1,200,000
3,101
1,203,101
IDR
IDR
IDR
SAUSSAGE
1,200,000
4,294
1,204,294
CHEESE
IDR
IDR
IDR
MIX
400,000
584
400,584
IDR
IDR
IDR
TOTAL
6,050,000
84,338
6,134,338
6. CONCLUSIONS AND
RECOMMENDATIONS
6.1 Conclusion
•
7
Of the three methods of forecasting has
been done (linear, constant and
quadratic), forecasting with Constant
method gives the best results. It is seen
from the value of MAD, MAPE, MSE,
SEE (mean absolute percentage error) the
smallest compared to other methods
(linear and quadratic), but with all the
8
•
•
•
•
consideration and look of the actual data
that occurred at the chosen restaurant
Linear Method used for Forecasting Pizza
MO (r).
Of
the
four
methods
Material
Requirement Planning (MRP), which has
been carried out, namely, (LFL, EOQ,
POQ, LUC) the size of the lot sizing gives
various results and save costs varying
messages different,
To Lowest Cost messages contained in
the MRP method EOQ that is equal to
IDR. 4,800,000, - and the cost of the
highest message contained in the LFL
MRP method amounted to IDR.
6,400,000, -.
To Save Costs lowest for the MRP
method LFL is equal to IDR. 3950, and save costs is highest in the MRP
method EOQ IDR. 1,157,826, -. Of the
four methods theoretically POQ MRP
method that gives the lowest total cost
of USD. 5,908,334, -
•
•
6.2 Suggestions
Here are some there are some suggestions that can
be taken by the authors to be considered to be the
input for the company and further research
activities to improve the planning of the
company's existing inventory system. This
certainly meant that the inventory planning
company can do better for smooth production
processes. These suggestions are as follows:
•
•
•
In forecasting should look at the data and
stock chart patterns resulting from
DEMAND, then use more than one
method of forecasting, because by using
more than one method we can see and
compare the results obtained from other
forecasting.
To be more accurate forecasting can use
computer programs such as Microsoft
Excel, WinQ Software SB, and Software
POM
In the procurement of raw materials
should companies use the system FIFO
(First In, Fist Out). This is because the
company is engaged in the food industry,
to keep to higienisan raw materials and
deliver consistently good quality food
products and nutritious for customers who
consume them.
8
The restaurant can also use the MRP
system in order to be able to order a
material with appropriate capacity, on
time and with minimal costs so there is no
accumulation of raw materials that would
have an impact on storage costs
enormous.
To maintain sales (Sales) well, then this
restaurant should always be on sale and
clicking Update from any existing menus.
Thus providing the innovation, and the
creation of new flavors for the food
lovers.
It also should always keep the Speed of
Service (SOS) in performing its
production in order customers (customer)
satisfaction in getting served quickly and
correctly
9
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