Production Prioritization at PT. XYZ with Stock Needs Rule (SNR) Method and Analytical Hierarchy Process

Abstract

The intensity of delay delivery at PT. XYZ continues to increase. The cause of these delays is the changes in production schedules due to fluctuating daily demand and the fulfillment of customer requests based on customer priorities. This study aims to create a model for determining the prioritization of running production that minimizes delivery delays by considering objective factors such as shortage dates and balance stock, and subjective factors such as customer priority. The methods used for determining production priorities are the Stock Needs Rule (SNR) and Analytical Hierarchy Process (AHP). This model utilizes three criteria for determining the prioritization of running part numbers, that is: shortage dates that consider the daily stock quantity of finished goods, Work in Process (WIP), and previous day's demand; balance stock that considers the inventory stock and the demand that needs to be fulfilled during the lead time; and customer priority that takes into account the intensity of demand fluctuations, loyalty, and fixed product usage time. With this model, PT. XYZ can determine the priority part numbers that need to be produced first.