Track: Undergraduate Student Paper Competition

Abstract

Inventory and production planning is one of important aspects that has to be considered in manufacturing industry. This aspect must be well executed for the continuity of manufacturing activities so that the company becomes profitable. This research focuses on safety stock planning and bottleneck that occurs on sand coated metal roof production at PT. XYZ. Occurring risk costs from non-optimal safety stock quantity and failures to achieve production target as occurring bottleneck on production are the main problems. Based on the chosen best forecasting method by analyzing the data, the optimal safety stock for maroon, black, green, brown, red, and blue sand coated metal roofs are 6098, 2196, 1585, 1796, 1267, and 604 consecutively. By using Theory of Constraint to minimize the occurring bottleneck on production line, the chosen best alternative is by recruiting 2 additional workers and 10 drying racks for production thus increasing company’s profits.