| dc.description.abstract | Production is a process of converting input value into an output value where a
continuous process occurs repeatedly over time so that the output obtained is in
accordance with the design specifications that have been set based on the wishes
of a market. Economic Production Quantity (EPQ) Multi Item or optimal
production level is the quantity of products produced by minimizing the total cost
of inventory, including production setup costs and storage costs on two or more
items. In overcoming the shortage or excess, each company needs to do planning
in controlling production so that there is no loss and no profit is achieved. In this
study, demand forecasting is used and carried out to obtain an estimated value for
the following year, for the forecasting method used based on historical CPO data
is single exponential smoothing where the estimated amount of demand each year
is 5,514,552 kg, while from historical PK data the forecasting method used is
double exponential smoothing where the estimated amount of demand each year is
471. 072 kg, so that the number of production cycles (production run) in 12 months
or one year is 2.7 cycles, so that the ideal EPQ value for one cycle of each item of
goods is for CPO of 1,904,648.89 kg and PK of 174,471.111 kg with a production
time of 5 days per cycle. By planning and controlling using EPQ Multi Item, the
company will be able to minimize total costs by 21% each year. | en_US |
