THE STUDY OF COST EFFICIENCY IN CV MUNAWIR FURNITURE BY APPLYING DEMAND FORECAST AND AGGREGATE PLANNING

• Main Author: Luthfi Mishbah, Muhammad
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/64726
• Institution: Institut Teknologi Bandung

Furniture industries in Indonesia already spread across the province in Indonesia, Jepara City is one of furniture industry centre that located in Central Java, Indonesia. CV Munawir Furniture as one of small and medium furniture industry in Jepara city produce various types of furniture such as chair set, cupboard, cabinet, etc. This company often experience mismatch in their actual demand and forecasted demand, because in forecasting the demand this company use last year actual demand as their forecasted demand in current year with subjective adjustment from the owner of the company or it can be called as naive approach. To fulfil their forecasted demand this company only use constant workforce method, so when the demand is high the company only do overtime to their workforce, and when the demand is low, they will adjust the production rate so there will be an idle workforce. With these two symptoms this company have a problem with their production cost inefficiency. The objective of this research is to find the most suitable demand forecasting method and aggregate planning method that can increase the production cost efficiency of CV Munawir Furniture. Demand forecasting method that used in this research is time series forecast and for the aggregate planning, this research use level, chase, and linear programming strategy. This research compares the time series forecasting method and choose the smallest number of error measurement value, the error measurement that used for forecasting method in this research is Mean Absolute Deviation (MAD), Mean Squared Error (MSE), and Mean Absolute Percentage Error (MAPE). For the aggregate planning, the author compares the proposed solution strategy and choose the smallest total production cost. The result of this research show that the most suitable demand forecasting method is winter’s model with error value of MAD 12.37, MSE 233.25, and MAPE 12,6%. The most suitable aggregate planning strategy for CV Munawir Furniture is linear programming strategy, this method can decrease the total production cost from IDR 1,026,000,000 by using company method to IDR 910,925,000 by varying the workforce and the inventory of the company in linear programming strategy.