ABSTRACT : Inventory management at CV. Denara Duta Mandiri is not running at a maximum level yet soit experiences excess inventory of raw materials. One concept that can be used to plan and control raw materialsis the Material Requirement Planning (MRP) system. Purpose of study is to determine the amount of netdemand, size of the order, order time, and method that produces the lowest cost for each raw material. Study isconducted on a 1 kg body massage cream product. Data collection by interview and observation. Data analysistechniques used are descriptive and quantitative analysis. Trend projection forecasting had the smallestforecasting error with a forecasting result of 34 kg. Determination of order size or lot sizing obtained bestmethod is part period balancing which results in total inventory cost of Rp. 361,734.29. total cost producedlower than economic order quantity of Rp. 438,348.13 and lot for lot of Rp. 797,500..
KEYWORDS : Material Requirement Planning, Lot For Lot, Economic Order Quantity, Part PeriodBalancing