Inventory control

Macroeconomics

Marketing

Engineering

Raw material

Operating system

Economics

Computer science

Visual arts

Business

Operations research

Organic chemistry

Exponential smoothing

Supply chain

Operations management

Aggregate planning

Schedule

Chemistry

Material requirements planning

Production planning

Sizing

Production (economics)

Economic order quantity

Computer vision

DOAJ (DOAJ: Directory of Open Access Journals)

This paper discusses the inefficient and inaccurate raw material supply at a food company which results in a backlog. This means the overstock occurs so that the improvement of inventory control needs to be done. ABC classification is firstly utilized as input for Material Requirements Planning (MRP). This paper focuses on four products which are classified into A class. Then, this paper discusses the Triple Exponential Smoothing as the forecasting method. Aggregate planning is also conducted for better production planning. The results of aggregate planning provide solutions to increase the workforce to balance production capacity by the number of demands. Squared Coefficient of Variation (SCV) calculations indicates the demand follows a static pattern. Therefore, the appropriate lot sizing method is the Economic Order Quantity (EOQ) to carry out the production needs. Finally, this paper uses capacity planning using Rough-Cut Capacity Planning (RCCP) and Capacity Requirement Planning (CRP) methods. As a result, the capacity meets the Master Production Schedule (MPS) as well as MRP and they are feasible to be implemented.

Improving the performance of planning and controlling raw material inventory in food industry