Aggregate Planning Method as Production Quantity Planning and Control to Minimizing Cost

Abstract

Abstract Production planning is very important in a production because it is related to the amount of fluctuating consumer demand in each period. If there is a product shortage will cause consumer demand cannot be fulfilled so the company loses profits and commitment from customers who have trusted. However, if the excess production in a certain period there will be a buildup of products that are generated and will result in high storage costs of finished products and waste of product storage. Products that often occur in fluctuating demand is wheat flour products. Based on observations at PT. Bulog, the authors provide an analysis to overcome the problem of fluctuating demand at PT. Bulog with aggregate planning methods. Based on forecasting results that have been obtained in the previous period wheat flour demand data at PT. Bulog, we will determine the quantity and the future production time for wheat flour products. Production planning is a very important activity of all production activities of a company. Based on the calculation of aggregate planning that has been done using the company’s demand and production data PT. Bulog in the previous period found that the best method that can be used in the company’s production process is the chase strategy method, this method is used by increasing or reducing the number of workers based on the number of consumer demand. By using a chase strategy, the costs used by the company are less when compared to other methods. Costs to be incurred based on the selection of the best method for the product “Tepung Terigu Kita” is IDR 341,857,000.00.