Aggregate Planning to Minimize Cost of Production of ABC Company with Forecasting and Master Production Schedule Approach

The rapid growth of the Food and Beverages industry leads to a very fierce competition between the companies in

this industry. ABC Company is one of the players in the industry and to gain more competitive advantages to win

the competition, The company needs a strategic movement. The company’s current condition is that most of the

time, the demand is lower than the capacity which leads to an inventory and cost wasting. The objective of this study

is to create a complete company’s production schedule and meet demand while spending as minimum money as

possible on production factors. The data were gathered through literature review and secondary data gathered

directly from the company itself. The sales data from the past 4 months are used to forecast upcoming 3 months'

demand using smooth exponential forecasting and moving average method. Furthermore, the data are also used to

calculate the aggregate planning strategies, such as chase strategy, level strategy, and mixed strategy using the POM

QM application. Those three strategies then are validated using MPS calculation to find which strategy has the least

cost of production. The result of this study is that the mixed strategy has the least cost of production.