Track: Production Planning and Control

Abstract

The growth trend in world furniture exports, which has continued to increase over the last few years, has opened up opportunities for domestic business actors to increase market share and profits, one of which is PT. XYZ produces wood-based handicraft products in the form of perfume boxes for export to the Middle East market. In carrying out their business activities, companies often find it difficult to meet the increasing demand for perfume boxes, especially during peak seasons. Therefore, the researcher proposes an aggregate planning method using three strategies, namely chase strategy, level strategy and mixed strategy, to meet the demand for perfume boxes with minimum costs. The results of calculations that have been carried out show that a mixed strategy using the transportation method is the best strategy that will be applied to PT. XYZ because it can meet the demand for perfume boxes with a minimum cost of Rp. 4,531,944,000, saving Rp. 1,459,124,000 or 24.35% of the method currently used by the company during 2017.