AGGREGATE PLANNING BASED ON FORECAST DEMAND FOR EL FARM’S COLD PRESS JUICE PRODUCT

El Farm is a startup company which sells cold press juice product. Currently, El Farm is facing problem in determining their production level as well as reducing wastes in work in progress inventory and finish product since they do not have proper forecast demand and production planning. Therefore,...

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Bibliographic Details
Main Author: Ridlo Ichsan Asyhari (19215046), Zed
Format: Final Project
Language:Indonesia
Online Access:https://digilib.itb.ac.id/gdl/view/31896
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Institution: Institut Teknologi Bandung
Language: Indonesia
Description
Summary:El Farm is a startup company which sells cold press juice product. Currently, El Farm is facing problem in determining their production level as well as reducing wastes in work in progress inventory and finish product since they do not have proper forecast demand and production planning. Therefore, this research was aimed to generate a fit forecast potential demand and the suitable production planning with the current capacities in El Farm. El farm targeted market is people with age range from 20-49 years old that live in Bandung area, with total population 1,254,039. To forecast the demand, we distribute surveys to 274 respondents. The collected data then will be analyzed using statistical analysis to estimate the market demand. After that, we analyze El Farm capacity planning which includes design capacity, effective capacity, utilization, and effectiveness. The writer also uses benchmarking to become a consideration for the production planning. The estimated demand with current capacity capabilities and benchmarking data then will become data input for determining the production level of cold press juice products in El Farm. Next, we will apply the transportation model for aggregate planning methods to find the most efficient cost then apply the method as the production planning strategy in El Farm. The result from this research is, we found that the market is very potential for cold press juice product, El farm design capacity is 53 bottles/day with regular working time and 63 bottles/day when using overtime. While El Farm effective capacity is 42 bottles/day with regular working time and 55 bottles/day when using overtime. However current utilization and effectiveness from the capacity just 8.5% and 10.7%. Based on forecast potential demand, capacity, and benchmark El Farm create two plan for aggregate planning. The first plan is weekly production planning when El Farm does not implement marketing activity with total production 260 bottles/week, the second plant is when weekly planning when El Farm implementing marketing activity with total production 288 bottles/week. The result of this study will be used as a reference to create production planning that can minimize its cost and waste. This study also aimed to become a reference for other research for cold press juice industry.