Proceedings of the 10^th International Conference on Operations and Supply Chain Management, 2020

Pandhu Utomo Paksi Hartoyo
Department of Technology Management, Institut Teknologi Sepuluh Nopember

Niniet Indah Arvitrida
Department of Industrial Engineering, Institut Teknologi Sepuluh Nopember (ITS)

This research presents of hybrid design of MRP and JIT system to improve the collaboration between a company with its supplier under demand uncertainty. A case of pigment inventory in a plastic injection manufacturing company is taken to understand the important aspects in implementing hybrid MRP-JIT system, where the aspects are reviewed from both practical and academic perspectives. The performance evaluated in this case study are related to inventory and production performance. The inventory performance is measured through the level of stockout, overstock, and non-moving stock. Meanwhile, the production performance is represented by the expected downtime. The process of analysis and designing the conceptual design of MRP-JIT system are presented in this research. The analysis is conducted to ensure that the characteristics of the case study match with the concept of MRP and JIT, so a literature study is required in this phase. Then, the MRP-JIT hybrid design is proposed to incorporate advantages of both MRP and JIT. MRP is adopted to improve the inventory process in terms of planning, while JIT is used to accelerate the inventory process in terms of operational implementation in the field directly. The contribution of this research is to provide a practical approach to adjust the needs of the manufacturing industry with cost efficiency.

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