The paper aims to improve the production planning of a rack industry by implementing forecasting and production planning tools. The production strategy used in the manufacturing industry is a make-to-stock production approach. The manufacturing industry often encounters problems mostly about underproduction and overproduction that leads to high cost and poor performance. The problem is highly related to the quality of forecasting and production planning. This paper discusses the implementation of a moving average forecast method and MRP in one product of the observed manufacturing industry to increase production planning efficiency and effectiveness. The results show that the forecast of supply, production, and demand for the present year have the potential to be in condition of overproduction so reducing the production is necessary to get the optimum profit by avoiding unnecessary cost. Moreover, the MRP provides clear information about how much materials are required for production and when to order the materials. The forecasting method and MRP could improve the production planning in the manufacturing industry.