Operations Research: International Conference Series
Vol 1, No 1 (2020)

Analysis of the Aggregate Heuristic Planning for Planning and Controlling the Amount of Production to Minimize Costs

Riana Magdalena (Unknown)



Article Info

Publish Date
05 Feb 2020

Abstract

PT.XYZ is one of the companies engaged in the automotive manufacturing industy, where it produces spare parts for cars, motorcycles and trucks. Along with marketing and producing the products, PT.XYZ continues to implement customer satisfaction and the quality of spare parts produced.  The company must anticipate the possibility of production capacity limitations; this must be done as well as possible at the minimum cost. For that, the aggregate heuristic planning is proposed for planning the establishment of a level for production capacity to meet the level of demand obtained from orders with the aim of minimizing total production costs. Aggregate Planning is a process of determining the level of overall production capacity to meet the level of demand obtained from forecasting and order with the aim of minimizing the total cost of production. In this study, three heuristic methods were tried, namely labor control method, subcontracting mixed method, and overtime mixed methods. Based on the results of the study it is known that the subcontracting mixed method is the best method with total aggregate cost of IDR 3,080,689,770, then the labor control method with a total of aggregate cost of IDR 3,080,798,198 and the overtime  mixed  method, with a total  aggregate cost of  IDR 3,081,815,315. 

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Journal Info

Abbrev

Orics

Publisher

Subject

Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Engineering Mathematics

Description

Operations Research: International Conference Series (ORICS) is published 4 times a year and is the flagship journal of the Indonesian Operational Research Association (IORA). It is the aim of ORICS to present papers which cover the theory, practice, history or methodology of OR. However, since OR ...