Improving Small Apparel Company’s Production Planning using Demand Forecasting and Material Requirement Planning

Gabriella Regina, Naila Zaafira Wilson, Pocut Shafira Putri Aurora, Rahmat Nurcahyo

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

2 Citations (Scopus)

Abstract

Aggregate planning has been widely used by apparel manufacturers to gain maximum profit by finding the optimal solution between maximizing sales and minimizing production cost. Commonly, small apparel companies use chase strategy, where production rates are varied for each time period to meet changes in demand. However, without an appropriate demand forecast and well-calculated production planning, this strategy cannot accommodate the fluctuating demand, causing recurring product stockouts which increases the number of unmet customer demands. To improve the company’s production planning, the number of demands is forecasted using Single Moving Average method for each week of the upcoming month. The forecasted demand is then used to plan the production quantity using Material Requirement Planning which helps ensure that all the demands are met while avoiding over-production by taking on-hand inventory into account. Comparison between the former and the improved production planning method shows an increase in the company’s sales, increasing profit by 8.98% or equal to Rp616.000. This concludes that the method proposed in this paper can be used as a simple yet effective way to improve the apparel company’s production planning, hence increasing the company’s profit.

Original languageEnglish
Title of host publicationProceedings - 2021 IEOM India Conference
EditorsShekar Babu, Devdas Shetty, V. Vasu, R.R.K. Sharma, Ahad Ali
PublisherIEOM Society
Pages291-302
Number of pages12
ISBN (Print)9781792361289
Publication statusPublished - 2021
Event1st Indian International Conference on Industrial Engineering and Operations Management, IEOM 2021 - Virtual, Online
Duration: 16 Aug 202118 Aug 2021

Publication series

NameProceedings of the International Conference on Industrial Engineering and Operations Management
ISSN (Electronic)2169-8767

Conference

Conference1st Indian International Conference on Industrial Engineering and Operations Management, IEOM 2021
CityVirtual, Online
Period16/08/2118/08/21

Keywords

  • Apparel
  • Forecasting
  • Product stockouts
  • Production planning

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