MRP Method Cuts Ready-Mix Concrete Costs in Indonesian Construction Project

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Efficient material planning can significantly reduce construction costs without compromising project progress, according to a new study by Trio Pendekar Lonan, Daisy D. G. Pangemanan, Estrellita V. Y. Waney, and Nixon Mantiri from Politeknik Negeri Manado, Indonesia. Published in 2026 in the Jurnal Multidisiplin Madani (MUDIMA), the research demonstrates how the Material Requirements Planning (MRP) method helps optimize ready-mix concrete procurement for the Solo Raya Tourism Polytechnic construction project. By comparing three material ordering strategies, the researchers found that the Lot-for-Lot (LFL) method achieved the lowest operational cost, offering a practical solution for improving efficiency in construction project management.

Construction Projects Face Growing Material Management Challenges

Construction materials account for one of the largest portions of project expenditure, alongside labor, equipment, and construction methods. Because of this, effective material planning has become increasingly important as the construction industry faces rising material prices, tighter project schedules, and greater pressure to improve cost efficiency.

In many construction projects, poor material planning leads to unnecessary expenses. Ordering excessive quantities ties up capital in unused inventory, while insufficient supplies can delay construction activities, disrupt project schedules, and increase overall project costs. Both situations reduce project efficiency and make it more difficult for contractors to meet budget and completion targets.

The researchers from Politeknik Negeri Manado explain that these challenges are common during material procurement, where inaccurate quantity estimates and inefficient delivery schedules frequently result in either material shortages or excessive stock. Better planning is therefore essential to ensure that materials arrive in the right quantity and at the right time.

Against this backdrop, the study evaluates how the Material Requirements Planning (MRP) method can improve inventory control for ready-mix concrete used in the construction of the Solo Raya Tourism Polytechnic Lecture Hall in Central Java.

Research Evaluates Three Material Ordering Strategies

The researchers conducted a quantitative case study focusing on the Solo Raya Tourism Polytechnic construction project between August and December 2023. The project provided an opportunity to examine how different material planning approaches influence procurement efficiency during actual construction activities.

To build the analysis, the research combined both primary and secondary data. Field observations, interviews with project personnel, and project documentation were used to understand actual construction conditions and identify material management challenges. Meanwhile, project documents—including the Bill of Quantities (BoQ), Unit Price Analysis (AHSP), S-Curve, shop drawings, project schedules, and material cost records—supplied the numerical information required for planning calculations.

Using the Material Requirements Planning (MRP) framework, the researchers calculated gross material requirements, net material requirements, order timing, and procurement quantities. They then compared three widely used lot-sizing techniques:

  • Lot-for-Lot (LFL)
  • Part Period Balancing (PPB)
  • Least Unit Cost (LUC)

Each method was evaluated based on ordering frequency, inventory costs, ordering costs, and total procurement costs to identify the most economical strategy for ready-mix concrete procurement.

Key Findings Show Lot-for-Lot Delivers the Greatest Cost Efficiency

The analysis found that the Material Requirements Planning (MRP) method provides a systematic way to determine how much ready-mix concrete should be ordered and precisely when each order should be placed. Rather than relying on estimates or conventional purchasing practices, MRP aligns procurement schedules with the project's actual construction timeline, helping contractors avoid both material shortages and unnecessary inventory.

After comparing the three lot-sizing techniques, the researchers identified clear differences in operational costs.

The Lot-for-Lot (LFL) method produced the most economical result because materials were ordered only in the quantities required for each construction period. This approach eliminated inventory storage costs while maintaining sufficient material availability throughout the project. As a result, the total operational cost reached Rp29,580,000, making it the lowest-cost alternative among all methods evaluated.

By comparison:

  • Lot-for-Lot (LFL): Rp29,580,000
  • Part Period Balancing (PPB): Rp38,238,205
  • Least Unit Cost (LUC): Rp56,442,800

The findings indicate that although PPB and LUC are designed to balance ordering and storage costs, both generated higher total expenses than the simpler Lot-for-Lot strategy under the conditions of the Solo Raya Tourism Polytechnic project.

The researchers also discovered that improved material planning reduced unnecessary procurement. Through MRP analysis, the estimated requirement for Fc'25 ready-mix concrete decreased from 3,475.50 m³ to 3,375.34 m³, demonstrating that more accurate planning can minimize excess material purchases without affecting construction activities.

Why the Findings Matter

The study has practical implications for contractors, project managers, consultants, and public agencies responsible for construction projects. Material procurement often represents one of the largest financial commitments in infrastructure development, meaning even modest improvements in planning can generate substantial savings.

By implementing the Material Requirements Planning (MRP) method, construction organizations can:

  • Reduce unnecessary inventory and associated storage costs.
  • Improve cash flow by purchasing materials only when needed.
  • Prevent project delays caused by material shortages.
  • Increase scheduling accuracy throughout project execution.
  • Improve overall cost control and operational efficiency.

The researchers emphasize that selecting the appropriate lot-sizing technique is just as important as adopting MRP itself. Because every construction project has different characteristics, contractors should evaluate ordering costs, storage costs, project schedules, and material demand before deciding which procurement strategy to implement.

As Trio Pendekar Lonan, Daisy D. G. Pangemanan, Estrellita V. Y. Waney, and Nixon Mantiri of Politeknik Negeri Manado conclude, the Material Requirements Planning (MRP) method enables construction managers to plan ready-mix concrete procurement more systematically, while the Lot-for-Lot technique provides the most cost-efficient solution for the project examined in this study.

Author Profile

Trio Pendekar Lonan is a researcher in construction engineering at Politeknik Negeri Manado, Indonesia. This study was conducted with Daisy D. G. Pangemanan, Estrellita V. Y. Waney, and Nixon Mantiri, whose expertise includes construction management, project planning, civil engineering, and infrastructure development. Together, the research team focuses on improving project efficiency through evidence-based planning and engineering management.

Source

Article Title: Control of Materials and Costs for Ready-Mix Concrete Using the Material Requirements Planning Method

Journal: Jurnal Multidisiplin Madani (MUDIMA)

Volume: 6, Issue 6

Publication Year: 2026

Pages: 705–718

DOI: https://doi.org/10.55927/mudima.v6i6.67


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