AGGREGATE

INDUSTRIAL ENGINEERING – 2

Subject : Production Planing, Control and Integration

Lecturer : Anastasia L. Maukar

Created by :
Ayu Rizki Rahmadini (004201500002)
Rianita Savira (004201500026)
Satrio Kartiko N (004201500029)
Selya Elinta (004201500030)
Teejay David Golung (004201500034)

President University
Jababeka Education Park, Jl. Ki Hajar Dewantara, Kota Jababeka, Cikarang Baru,
Bekasi 17550 – Indonesia
Phone (021) 8910 9762-6, Fax (021) 8910 9768
Email: enrollment@president.ac.id, http://www.president.ac.id

2-0
 CHAPTER I
INTRODUCTION

1.1 Background
Aggregate Planning is the procedure of creating a production schedule for a given
period of time (usually 6-18 months) by listing out all the requirements that are
crucial for uninterrupted production. The planning covers various elements such
as man power, raw material, and financial planning. It is an important tool for
companies as helps in streamlining the immediate production processes by
aligning them with the long-term strategic plans and goals of the organization.

In other words, aggregate planning is a process that can be held in order to

balance capacity and demand in such a way that costs are minimized. The term
"aggregate" is used because planning at this level includes all resources "in the
aggregate;" for example, as a product line or family. Aggregate resources could be
total number of workers, hours of machine time, or tons of raw materials.
Aggregate units of output could include gallons, feet, pounds of output, as well as
aggregate units appearing in service industries such as hours of service delivered,
number of patients seen, etc.

Aggregate planning is also known as an intermediate-range planning technique.

Aggregate planning is commonly used by company in order to help make
decisions about their capacity because seasonal variations in demand are difficult
to predict accurately. The main goal of the company is to match resources with
the expected demand. It can be achieved by taking into account a diverse amount
of factors such as decisions on output rates, overtime, employment levels and
changes, inventory levels and changes, back orders, and subcontracting work.

2-1
Basically, the characteristics of aggregate planning are planning horizon from
about 3 to 18 months with the periodic updating, aggregate resources quantities
stated in common terms, aggregate product demand stated in common terms and
influence both the supply and the demand by adjusting the production rates,
workforce levels, the inventory levels etc.

1.2 Objective
The objectives of this project are:
 To be able in matching the rate of production and the rate of demand, so
that products are made in exact and proper number.
 To understand in utilizing productivity of human and equipment resource.
 To know how to determine the most minim cost of production.
 To know how to calculate MPS based on Workforce/Chase Strategy,
Inventory Strategy, and Transportation.

1.3 Tools and Equipment

 Microsoft Excel is used to do the calculation of MPS.
 Data of Report 1.

1.4 Steps
 Choose the best forecasting demand based on the forecasting report.
 Select some alternatives to conduct aggregate planning, which are
Workforce, Inventory and Transportation Method.
 Calculate the total cost based on each method.
 Choose the lowest cost as the best method as the best method for case.

2-2
 CHAPTER II
LITERATURE STUDY

Aggregate planning is a forecasting technique that being used in an attempt to

predict the supply and demand of their products and services. Mainly, this is done
in an effort to save money, streamline operations and increase productivity. To
accomplish this, use an aggregate planning model to develop a game plan that will
assist with determining staffing requirements, materials needed, estimated
timelines and budget costs so that can have a better plan ahead (Robertson, 2017).

2.1 Aspect of Aggregate

There are several aspects of aggregate, which are cost, capacity, and demand
(Aggregate planning, 2017).

2.1.1 Cost
There are seven types of cost in aggregate which are reguler time cost, over time
cost, stock out cost, subcontacting cost, hiring cost, and lay off cost, which are:
(Ong, 2013)
 Reguler time cost is the cost of producing a unit on regular time.
 Over time cost is the cost of producing a unit on over time.
 Inventory-holding cost is the lost opportunity resulting from tying up
money in finished goods inventory plus the cost of space in which to store
the finished goods. Interest, space, taxes, insurance, obsolescence, and
other costs are sometimes included in this cost.
 Stock out cost is the expected losses resulting from failure to meet the
demand for the product. If the customer merely waits for delivery –
backorders If the customer goes elsewhere – lost sales.
 Subcontracting cost is the total per-unit cost if the production is
subcontracted to an outside source.

2-3
  Hiring cost is the expected cost to increase the work force by one person.
This includes items such as personnel department cost (advertising,
interviewing, investigation of references, and physical examinations),
training cost, inefficiencies, and the cost during early learning periods.
 Layoff (firing) cost is the cost associated with reducing the workforce by
one person. Unemployment compensation cost, and even lost goodwill
should be included.

2.1.2 Capacity
There are several options that planners can change supply by adjusting labor,
inventory, and subcontracting, which are: (Aggregate planning, 2017)
 Hire and lay off workers, the extent of which how much the worker are,
will impact changes in the workforce level that will impact directly on
capacity.
 Part-time worker, the use of part-time can fill the capacity that have not
achieved.
 Inventories, inventory can be built up during periods when production
capacity exceeds demand and drawn out in periods when demand exceeds
capacity.
 Subcontracting, a company can obtain temporary capacity by
subcontracting during periods of high demand.
 Overtime, the use of overtime can be especially effective in dealing
seasonal demand peaks by reducing the need to hire people during off-
season.

2.1.3 Demand
There are several options that can shift demand from peak periods to off-peak
periods or create demand during off-peak periods so that the overall demand
corresponds more closely to capacity (Aggregate planning, 2017).

2-4
  Pricing, an important factor to consider is the degree of price elasticity;
the more the elasticity, the more effective pricing will be in influencing
demand patterns.
 Promotion, the timing of promotion efforts and knowledge of response
rates and response patterns will be needed to achieve the desired demand.
 Back orders, back orders allow orders to be taken in one period and
deliveries promised for a later period
 New demand, developing a demand for a complementary product that
makes use of the same production processes achieves a more consistent
use of labor, equipment, and facilities

2.2 Pure Planning Strategies

There are two types of aggregate planning strategies. They are Chase Strategy and
Level Strategy (Management Study Guide, 2017).

2.2.1 Chase Strategy

Chase strategy looks to dynamically match demand with production, advantage of
chase strategy is lower inventory levels and back logs, disadvantage is lower
productivity, quality and depressed work force (Management Study Guide, 2017).

The worker needed, production rate, hiring cost, unit produced, net inventory and
total cost can be calculated with a formula, which are:

𝑑𝑒𝑚𝑎𝑛𝑑
𝑤𝑜𝑟𝑘𝑒𝑟 𝑛𝑒𝑒𝑑𝑒𝑑 = 𝑚𝑜𝑛𝑡ℎ (2 − 1)
𝑑𝑎𝑦𝑠 𝑢𝑛𝑖𝑡𝑠
𝑥
𝑚𝑜𝑛𝑡ℎ 𝑤𝑜𝑟𝑘𝑒𝑟
𝑑𝑎𝑦

𝑆ℎ𝑖𝑓𝑡 𝐻𝑜𝑢𝑟 𝑥 60 𝑚𝑖𝑛

𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 = (2 − 2)
𝑐𝑦𝑐𝑙𝑒 𝑡𝑖𝑚𝑒 𝑜𝑓 𝑎 𝑝𝑟𝑜𝑑𝑢𝑐𝑡
𝑈𝑛𝑖𝑡
= 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 × 𝑑𝑎𝑦𝑠 (2 − 3)
𝑤𝑜𝑟𝑘𝑒𝑟

2-5
 𝐶𝑜𝑠𝑡
𝐻𝑖𝑟𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 = 𝐻𝑖𝑟𝑖𝑛𝑔 × 𝐻𝑖𝑟𝑒𝑑 𝑊𝑜𝑟𝑘𝑒𝑟 (2 − 4)
𝑊𝑜𝑟𝑘𝑒𝑟

𝑢𝑛𝑖𝑡
𝑈𝑛𝑖𝑡 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑 = × 𝑤𝑜𝑟𝑘𝑒𝑟𝑠 𝑢𝑠𝑒𝑑 (2 − 5)
𝑤𝑜𝑟𝑘𝑒𝑟

𝑁𝑒𝑡 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 = 𝑢𝑛𝑖𝑡 𝑝𝑟𝑜𝑑𝑢𝑐𝑒𝑑 − 𝑑𝑒𝑚𝑎𝑛𝑑 𝑟𝑒𝑞𝑢𝑖𝑟𝑒𝑑 (2 − 6)

𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝐻𝑖𝑟𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 + 𝐿𝑎𝑖𝑑 𝑂𝑓𝑓 𝐶𝑜𝑠𝑡 + 𝐿𝑎𝑏𝑜𝑟 𝐶𝑜𝑠𝑡 + 𝐻𝑜𝑙𝑑𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 (2 − 7)

2.2.2 Level Stratgy

Level strategy looks to maintain a steady production rate and workforce level, in
this strategy, organization requires a robust forecast demand as to increase or
decrease production in anticipation of lower or higher customer demand,
advantage of level strategy is steady workforce, disadvantage of level strategy is
high inventory and increase back logs (Management Study Guide, 2017).
𝑐𝑢𝑚𝑢𝑙𝑎𝑡𝑖𝑣𝑒 𝑑𝑒𝑚𝑎𝑛𝑑
𝑤𝑜𝑟𝑘𝑒𝑟 𝑛𝑒𝑒𝑑𝑒𝑑 = (2 − 8)
𝑢𝑛𝑖𝑡𝑠
𝑐𝑢𝑚𝑢𝑙𝑎𝑡𝑖𝑣𝑒 𝑑𝑎𝑦𝑠 𝑥 𝑤𝑜𝑟𝑘𝑒𝑟
𝑑𝑎𝑦𝑠

𝑈𝑛𝑖𝑡
= 𝑃𝑟𝑜𝑑𝑢𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 × 𝑑𝑎𝑦𝑠 (2 − 9)
𝑤𝑜𝑟𝑘𝑒𝑟

𝐶𝑜𝑠𝑡
𝐻𝑖𝑟𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 = 𝐻𝑖𝑟𝑖𝑛𝑔 × 𝐻𝑖𝑟𝑒𝑑 𝑊𝑜𝑟𝑘𝑒𝑟 (2 − 10)
𝑊𝑜𝑟𝑘𝑒𝑟

𝐿𝑎𝑏𝑜𝑟 𝐶𝑜𝑠𝑡 = 𝐿𝑎𝑏𝑜𝑟 𝑐𝑜𝑠𝑡 × 𝑑𝑎𝑦𝑠 × 𝑤𝑜𝑟𝑘𝑒𝑟𝑠 𝑢𝑠𝑒𝑑 (2 − 11)

𝑢𝑛𝑖𝑡
𝑈𝑛𝑖𝑡 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑 = 𝑊𝑜𝑟𝑘𝑒𝑟 × (2 − 12)
𝑤𝑜𝑟𝑘𝑒𝑟

𝐶𝑢𝑚𝑢𝑙𝑎𝑡𝑖𝑣𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟 = 𝐶𝑢𝑚𝑢𝑙𝑎𝑡𝑖𝑣𝑒 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 − 𝐶𝑢𝑚𝑢𝑙𝑎𝑡𝑖𝑣𝑒 𝑑𝑒𝑚𝑎𝑛𝑑 (2 − 13)

2-6
 𝐻𝑜𝑙𝑑𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 = 𝐻𝑜𝑙𝑑𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 × 𝐶𝑢𝑚𝑢𝑙𝑎𝑡𝑖𝑣𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 (2 − 14)

𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝐻𝑖𝑟𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 + 𝐿𝑎𝑖𝑑 𝑂𝑓𝑓 𝐶𝑜𝑠𝑡 + 𝐿𝑎𝑏𝑜𝑟 𝐶𝑜𝑠𝑡 + 𝐻𝑜𝑙𝑑𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 (2 − 15)

2.3 Transportation Method

In the transportation method, allocate production capacity to meet demand at a
minimum cost. If there is an initial inventory, the first demand will be substracted
by the initial inventory, and if there is an ending inventory, the last demand will
be added with the ending inventory (Ong, 2013).

Table 2.1 Transportation Calculation Step One

Table 2.2 Master Production Scheduling

2-7
Table 2.3 Production Cost Calculation

2-8
 CHAPTER III
DATA COLLECTION

3.1 Result of Forecasting

From the previous report, the forecasting analysis have already done. The best
method that is choosen is the cyclic method. After the best method is choosen,
there will be the next step which is aggregate analysis. The N = 3 is used. The
result from the cyclic method is shown in Table 3.1 below. The result is used to
do the aggregate analysis.

Table 3.1 The Result of Forecast Demand from Cyclic Method

t Month Demand (in units)/dt dt'
21 Sep-17 - 1,427.333
22 Oct-17 - 1,650.429
23 Nov-17 - 1,688.714
24 Dec-17 - 1,427.333
25 Jan-18 - 1,650.429
26 Feb-18 - 1,688.714

The result of the best method comes from the error calculation that has been done
on Report Forecasting. The summary of the error calculation in Table 3.2 shows
that the error calculation for cyclic regression analysis, constant regression, and
linear regression are smaller than the others. For the MAD calculation, the value
of these three methods are below 167, for the MSE calculation, the value of these
three methods are below 51,000, and for the MAPE, the value of these three
methods are below 13%. These three methods considered to be passed the first
test or error test since these methods have the smallest result of error calculation
compared to the other methods.

2-9
 Table 3.2 Summary for Error Calculation of All Methods

Cyclic SES DES

Average Constant Linear
Method Regressio LPD SMA WMA DMA Brown Holt
Method α = 0.2 α = 0.5 α = 0.9 Regression Regression
n Analysis Method Method
MAD 147 2,059,473.68 185,391 195,706 183,902 254,904 175.13 166.9 199.81 182.53 207.71 163.09.00 166.73
MSE 38,241.02 82,700.1578 63,723.83 77,746.08 78,511.25 134,980.04 60,542 66,463 78,551 73,345.23 90,462.68 50,820.19 49,961.34
MAPE 10.24% 15.30% 13.40% 14.80% 14% 19.40% 12.90% 12.50% 14.90% 13.70% 15.65% 11.77% 11.97%

But to be considered as the best method, these method also have to pass the second test or validation test. Therefore, the validation
test should be done to the best three methods from error test. The result of the validation test is shown in Table 3.3

Table 3.3 The Result of Validation Test for Best Three Methods in Error Test
Verification Tracking Signal Normality Independence Identical
Constant Regression Not Passed Not Passed Not Passed Passed Not Passed
Linear Regression Not Passed Not Passed Not Passed Passed Not Passed
Cyclic Regression Not Passed Not Passed Passed Passed Passed

2-10
In the result of validation, it shows that the best method is cyclic regression since
this method passed normality, independence, and identical test.To know more
about the result of the test, so those tests are shown below. The first is normality
test. Suppose level of significance is 5%, the null hypothesis and alternative
hypothesis is:
𝐻0 = 𝑟𝑒𝑠𝑖𝑑𝑢𝑎𝑙 𝑖𝑠 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑒𝑑 𝑛𝑜𝑟𝑚𝑎𝑙𝑙𝑦
H1: 𝑟𝑒𝑠𝑖𝑑𝑢𝑎𝑙 𝑖𝑠 𝑛𝑜𝑡 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑒𝑑 𝑛𝑜𝑟𝑚𝑎𝑙𝑙𝑦

Figure 3.1 Probability Plot of Cyclic Regression

Regarding Figure 3.1¸ the p-value of plot is greater than 0.05, so the null
hypothesis is not rejected and alternative hypothesis is rejected. Value of AD is
0.361 which means quite small. It concludes that the error from Cyclic Regression
is distributed-normally. And the assumption of normality is fulfilled.

The next is autocorrelation test for independence test. Using Minitab application
the result is appeared on Figure 3.2.

2-11
 Autocorrelation Function for Error
(with 5% significance limits for the autocorrelations)

1.0

0.8

0.6

0.4
Autocorrelation

0.2

0.0

-0.2

-0.4

-0.6

-0.8

-1.0

1 2 3 4 5
Lag

Figure 3.2 Autocorrelation of Cyclic Regression

Based on Figure 3.2, it can be seen that the residual is not correlated each other,
because ACF (red lines) does not touch the blue vertical line, it can be concluded
that the error terms is independent or randomized.

The next is finding the validation of identically testing. The first is to find the
result of standardized error.

Table 3.4 The Result Standardized Error

Error Standardized Error
-30 -0.1556
-15 -0.07524
281 1.435245
132 0.672817
-66 -0.33604
-447 -2.28753
-328 -1.67949
-122 -0.62241

2-12
 Table 3.4 The Result Standardized Error (continued)
Error Standardized Error
7 0.034091
-41 -0.21185
-41 -0.2082
113 0.576144
134 0.683044
-1 -0.00365
339 1.73184
226 1.153505
217 1.111134
-291 -1.48979
-90 -0.46242
26 0.134417

Scatterplot of Forecast of Cyclic vs Standardized Error of Cyclic

1700

1650
Forecast of Cyclic

1600

1550

1500

1450

1400
-2 -1 0 1 2
Standardized Error of Cyclic

Figure 3.3 Scatter Plot Forecast vs. Standardized Error of Cyclic

Figure 3.3 shows the scatter plot of forecast vs. Standardized error of cyclic. It can
be seen that from the graph above, the result of Scatter Graph which y-axis is
forecast and x-axis is standardized error good. Since, the result of points is not
distributed evenly, so graph is homogeneous.

2-13
From the test that already done, it can be concluded that the cyclic regression
analysis is the best method since it has the smallest value of MAD, MSE, and
MAPE, which means that using this method, the error is less than the other
methods. The cyclic regression analysis might not passed the verification and
tracking signal, but based on the IIDN it is shows that this method is normally
distributed and independent, therefore this method is considered as the best
method.

3.2 Related Data and Assumptions

Based on data that is appeared, number of worker is 20 workers and the company
has two shifts. Each week has 6 working-days and 1 off day (on Sunday). The
company chosooses 2 shifts per day and 7 working-hour/shift.

Figure 3.4 Calender of September 2017 until October 2017

27
2s2
22
Figure 3.5 Calender of November 2017 until December22017
2-14
2
 2 3
2 2
2 2
2 2
2s 2s
2 2
Figure
2 23.6 Calender of January 2018 until February 2018
2 2
Table 3.5 The Shift Schedule
2 2
Time/Day Monday Tuesday Wednesday Thursday Friday Saturday
2 2
Shift 1 10 workers 10 workers 10 workers 10 workers 10 workers 10 workers
Shift 2 10 workers 10 workers 10 workers 10 workers 10 workers 10 workers
Total 20 workers 20 workers 20 workers 20 workers 20 workers 20 workers

Table 3.6 The Total Working Days

Days Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Total

Working 24 days 26 days 26 days 22 days 24 days 23 days 145 days
Off 6 days 5 days 4 days 9 days 7 days 5 days 36 days
Total Days 181 days

Table 3.7 Table of Assumptions

Title Quantity
Cycle Time for One Product 188 minutes
Reguler Time Cost IDR 130,000/worker/day
Overtime Cost IDR 30,000/hour
Hiring Cost IDR 2,500,000/worker
Firing Cost IDR 5,000,000/worker
Inventory Cost IDR 75,000/unit/month
Subcontract Cost IDR 50,000/hour
Beginning Inventory 70 units
Expected Ending Inv. 100 units

2-15
 CHAPTER IV
DATA ANALYSIS

Based on the assumption that is shown on CHAPTER III, there will be three
calculations of aggregate based on Workforce (No Backorders) or Chase Strategy
method, Inventory/Level Strategy method and Transportation method.

4.1 Workforce or Chase Strategy

A chase strategy implies matching demand and capacity period by period. This
could result in a considerable amount of hiring, firing or laying off of employees;
insecure and unhappy employees; increased inventory carrying costs; problems
with labor unions; and erratic utilization of plant and equipment. The first step is
to calculate the production rate. Using assumptions in CHAPTER III, the cycle
time for producing one product is 188 minutes, and the shift hour is 7 hours. The
production rate can be calculated as:
𝑆ℎ𝑖𝑓𝑡 𝐻𝑜𝑢𝑟 𝑥 60 𝑚𝑖𝑛
𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 =
𝑐𝑦𝑐𝑙𝑒 𝑡𝑖𝑚𝑒 𝑜𝑓 𝑎 𝑝𝑟𝑜𝑑𝑢𝑐𝑡

7 𝑥 60 𝑚𝑖𝑛
𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 =
188 𝑚𝑖𝑛

𝑢𝑛𝑖𝑡
𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 = 2.234 𝑤𝑜𝑟𝑘𝑒𝑟
𝑑𝑎𝑦

Table 4.1 The Result of Workforce Calculation

Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Total
1 Days 24 26 26 22 24 23 145
2 Units/Worker 53.617 58.085 58.085 49.149 5.617 51.383 323.936
3 Demand 1428 1651 1689 1428 1651 1689 9536
4 Req. Demand 1358 1615 1678 1422 1648 1775 9496
5 Worker Needed 25.328 27.804 28.889 28.932 30.737 34.545 176.234
Round Up 26 28 29 29 31 35 178
6 Workers Available 20 26 28 29 29 31 163
7 Workers Hired 6 2 1 0 2 4 15

2-16
 Table 4.1 Table 4.1 The Result of Workforce Calculation (continued)
Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Total
8 Hiring Cost 15,000,000 5,000,000 2,500,000 0 5,000,000 10,000,000 37,500,000
9 Workers Laid Off 0 0 0 0 0 0 0
10 Laid Off Cost 0 0 0 0 0 0 0
11 Workers Used 26 28 29 29 31 35 178
12 Labor Cost 81,120,000 94,640,000 98,020,000 82,940,000 9,6720,000 104,650,000 558,090,000
13 Units Produced 1394.043 1626.383 1684.468 1425.319 1662.128 1798.404 9590.745
Round Down 1394 1626 1684 1425 1662 1798 9589
14 Net Inventory 36 11 6 3 14 123 193
15 Holding Cost 2,700,000 825,000 450,000 225,000 1,050,000 9,225,000 14,475,000
16 Backorder Cost 0 0 0 0 0 0 0
17 Total 98,820,000 100,465,000 100,970,000 83,165,000 102,770,000 123,875,000 610,065,000

Based on Table 4.1 the unit per worker can be calculated by multiplying the
production rate with days in the month. For the example is September 2017, there
are 24 working days, so the unit that can be produced by worker is:
𝑈𝑛𝑖𝑡
= 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 × 𝑑𝑎𝑦𝑠
𝑤𝑜𝑟𝑘𝑒𝑟
= 2.234 × 24 = 53.617

Based on the calculation above the result of unit/worker for September 2017 is
53.617. The next is calculation for Worker Needed. The demand/month comes
from the forecasting in cyclic regression before. The demand is rounded-up. For
the workers needed can be calculated by:
𝑑𝑒𝑚𝑎𝑛𝑑/𝑚𝑜𝑛𝑡ℎ
𝑊𝑜𝑟𝑘𝑒𝑟𝑠 𝑁𝑒𝑒𝑑𝑒𝑑 =
𝑑𝑎𝑦𝑠
× 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒
𝑚𝑜𝑛𝑡ℎ
1,358
𝑊𝑜𝑟𝑘𝑒𝑟𝑠 𝑛𝑒𝑒𝑑𝑒𝑑 𝑖𝑛 𝑆𝑒𝑝𝑡𝑒𝑚𝑏𝑒𝑟 2017 = = 25.328
24𝑑𝑎𝑦𝑠 × 2.234

In September, there is beginning inventory which is 70 so the required demand is

1358 (1428 minus 70). The workers available in September is 20, while the
workers needed are 26 so there will be 6 hired workers. Here the calculation of
hiring cost:
𝐶𝑜𝑠𝑡
𝐻𝑖𝑟𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 = 𝐻𝑖𝑟𝑖𝑛𝑔 × 𝐻𝑖𝑟𝑒𝑑 𝑊𝑜𝑟𝑘𝑒𝑟
𝑊𝑜𝑟𝑘𝑒𝑟

2-17
 𝐻𝑖𝑟𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 = IDR 2,500,000 × 6 = IDR 15,000,000

After calculation the hiring cost, if there is firing cost it goes directly calculating
the unit produced. For the example is calculating the unit produced for September:
𝑢𝑛𝑖𝑡
𝑈𝑛𝑖𝑡 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑 = × 𝑤𝑜𝑟𝑘𝑒𝑟𝑠 𝑢𝑠𝑒𝑑
𝑤𝑜𝑟𝑘𝑒𝑟
= 53.617 × 26 = 1,394.043

The calculation of unit produced will be round-down. So the result for unit
produced in September is 1,394.043. The net inventory is unit produced
subtracted by demand required. For more detail, the net inventory for September
is:
𝑁𝑒𝑡 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 = 𝑢𝑛𝑖𝑡 𝑝𝑟𝑜𝑑𝑢𝑐𝑒𝑑 − 𝑑𝑒𝑚𝑎𝑛𝑑 𝑟𝑒𝑞𝑢𝑖𝑟𝑒𝑑
= 1,394 − 1,358 = 36

Labor cost is gotten from workers used multiplying by total days in the month
multiplying again with labor cost/worker. In September the company has 26
workers needed and 24 days, the regular time cost is 130,000/worker each day, so
the labor cost of this month is:
𝐿𝑎𝑏𝑜𝑟 𝑐𝑜𝑠𝑡 = 26 𝑤𝑜𝑟𝑘𝑒𝑟𝑠 × 24 𝑑𝑎𝑦𝑠 × 𝐼𝐷𝑅 130,000
= IDR 81,120,000

Total cost can be found by calculating the total from all cost. The example is total
cost for September.
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝐻𝑖𝑟𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 + 𝐿𝑎𝑖𝑑 𝑂𝑓𝑓 𝐶𝑜𝑠𝑡 + 𝐿𝑎𝑏𝑜𝑟 𝐶𝑜𝑠𝑡 + 𝐻𝑜𝑙𝑑𝑖𝑛𝑔 𝐶𝑜𝑠𝑡
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝐼𝐷𝑅 15,000,000 + 0 + 𝐼𝐷𝑅 81,120,000 + 𝐼𝐷𝑅 2,700,000
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 𝑖𝑛 𝑆𝑒𝑝𝑡𝑒𝑚𝑏𝑒𝑟 = 𝐼𝐷𝑅 98,820,000

The total cost for period September 2017 until February 2018 is:
𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡 = 𝑇𝐶 𝑠𝑒𝑝𝑡 + 𝑇𝐶 𝑜𝑐𝑡 + 𝑇𝐶𝑛𝑜𝑣 + 𝑇𝐶𝑑𝑒𝑐 + 𝑇𝐶𝑗𝑎𝑛 + 𝑇𝐶𝑓𝑒𝑏
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = IDR 610,065,000

2-18
After calculating all of the cost per month, the total cost for all the 6 month equals
to IDR 610,065,000. In the workforce strategy, mostly are the addition of the cost
of firing and hiring the workers every months to the total cost. However, this
strategy can minimize the inventory cost.

4.2 Level Strategy

Inventory strategy uses inventory in off-peak periods to satisfy demand in peak
period. In Inventory Strategy the number of workers in each period always use the
same number. The number of workers that use for each period is the maximum
numbers of workers needed.

Table 4.2 The Result of Maximum Worker Calculation

Sum of
Month Days/Month Demand Sum of Demand Workers Round Up
Days
Sep-17 24 24 1358 1358 25.32826022 26
Oct 17 26 50 1651 3009 26.93822739 27
Nov-17 26 76 1689 4698 27.67045187 28
Dec 17 22 98 1428 6126 27.98129099 28
Jan-18 24 122 1651 7777 28.53442329 29
Feb-18 23 145 1789 9566 29.53107153 30

The worker needed is calculation of cumulative demand divided cumulative days

and production rate. The production rate has been found before which is 2.234.
The result will be round-up. The worker needed can be calculated using equation
(2-8).
𝑐𝑢𝑚𝑢𝑙𝑎𝑡𝑖𝑣𝑒 𝑑𝑒𝑚𝑎𝑛𝑑
𝑊𝑜𝑟𝑘𝑒𝑟𝑠 =
𝑢𝑛𝑖𝑡𝑠
𝑐𝑢𝑚𝑢𝑙𝑎𝑡𝑖𝑣𝑒 𝑑𝑎𝑦𝑠 × 𝑤𝑜𝑟𝑘𝑒𝑟𝑠
𝑑𝑎𝑦𝑠

In September 2017, the cumulative demand is 1,358 and cumulative days is 26 so

using equation (2-8) the result of worker needed in september 2017 is 26 workers.
1,358
𝑊𝑜𝑟𝑘𝑒𝑟 = = 26
24 × 2.234

2-19
 Another example is October 2017, using equation (2-8) the result of worker
needed is 27 workers.
3,009
𝑊𝑜𝑟𝑘𝑒𝑟 = = 27
26 × 2.234

Based on Table 4.2, the maximum worker of Chase Strategy per month is 30
workers. In level strategy the total worker needed is constant, so the maximum
worker is used to prevent deficiency production.

Table 4.3 The Result of Level Strategy Aggregate Calculation

Sep-17 Oct 17 Nov-17 Dec 17 Jan-18 Feb-18 Total
Days 24 26 26 22 24 23 145
Units/Worker 53.6 58.1 58.1 49.1 53.6 51.4 323.93
Demand 1428 1651 1689 1428 1651 1689 9536
Req. Demand 1358 1651 1689 1428 1651 1789 9566
Worker Needed 30 30 30 30 30 30 180
Worker Available 20 30 30 30 30 30 170
Workers Hired 10 0 0 0 0 0 10
Hiring Cost 25000000 0 0 0 0 0 25,000,000
Workers Used 30 30 30 30 30 30 180
Labor Cost 93,600,000 101,400,000 101,400,000 85,800,000 93,600,000 89,700,000 565,500,000
Cum Demand 1358 3009 4698 6126 7777 9566 32534
Unit Produced 1608.48 1742.52 1742.52 1474.44 1608.48 1541.46 9717.9
Round Down 1608 1742 1742 1474 1608 1541 9715
Cum Production 1608 3350 5092 6566 8174 9715 34505
Cum Inventory 250 341 394 440 397 249 2071
Holding Cost 18,750,000 25,575,000 29,550,000 33,000,000 29,775,000 18,675,000 155,325,000
Total Cost 137,350,000 126,975,000 130,950,000 118,800,000 123,375,000 108,375,000 745,825,000

The production rate for Inventory Srategy is 2.234. In September 2017, there are
24 working days, so the unit produced by each worker is:
𝑈𝑛𝑖𝑡
= 𝑃𝑟𝑜𝑑𝑢𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 × 𝑑𝑎𝑦𝑠
𝑤𝑜𝑟𝑘𝑒𝑟
= 2.234 × 24 = 53.6

The beginning inventory is 70 so the Required Demand in September 2017 is

1,358. The workers available is just 20 workers while the company needs 30
workers. So 10 workers should be hired to cover the production. To calculate the
cost for hiring 10 workers using the equation (2-10).

2-20
 𝐶𝑜𝑠𝑡
𝐻𝑖𝑟𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 = 𝐻𝑖𝑟𝑖𝑛𝑔 × 𝐻𝑖𝑟𝑒𝑑 𝑊𝑜𝑟𝑘𝑒𝑟
𝑊𝑜𝑟𝑘𝑒𝑟
𝐻𝑖𝑟𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 = 𝐼𝐷𝑅 2,500,000 × 10 = 𝐼𝐷𝑅 25,000,000

The labor cost can be determined by multiplying labor cost/hour, days and
workers used. To calculate the labor cost in September 2017 is using eqution (2-
11) as shown below:
𝐿𝑎𝑏𝑜𝑟 𝐶𝑜𝑠𝑡 = 𝐿𝑎𝑏𝑜𝑟 𝑐𝑜𝑠𝑡 × 𝑑𝑎𝑦𝑠 × 𝑤𝑜𝑟𝑘𝑒𝑟𝑠 𝑢𝑠𝑒𝑑
= 𝐼𝐷𝑅 130,000 × 24 × 30
= 𝐼𝐷𝑅 93,600,000

Unit produced can be determined by multiplying worker and unit/worker. Using

equation (2-12), the result can be found. The example is September 2017, the
unit/worker is 53.6 (from calculation before), so the result of unit produced will
be:
𝑢𝑛𝑖𝑡
𝑈𝑛𝑖𝑡 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑 = 𝑊𝑜𝑟𝑘𝑒𝑟 ×
𝑤𝑜𝑟𝑘𝑒𝑟
= 30 × 53.6 = 1,608.48

The cumulative inventory can be found by subtracting cumulative production and

cumulative demand. Using equation (2-13), the result can be found. For the
example is cumulative inventory for September 2017, the cumulative production
is 1,608 and cumulative demand is 1,358. The result is:
𝐶𝑢𝑚𝑢𝑙𝑎𝑡𝑖𝑣𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 = 𝐶𝑢𝑚𝑢𝑙𝑎𝑡𝑖𝑣𝑒 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 − 𝐶𝑢𝑚𝑢𝑙𝑎𝑡𝑖𝑣𝑒 𝑑𝑒𝑚𝑎𝑛𝑑
= 1608 − 1358 = 250

To calculate the holding cost in September 2017 is using eqution (2-14) as shown
below:
𝐻𝑜𝑙𝑑𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 = 𝐻𝑜𝑙𝑑𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 × 𝐶𝑢𝑚𝑢𝑙𝑎𝑡𝑖𝑣𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
= 𝐼𝐷𝑅 750,000 × 250

2-21
 = 𝐼𝐷𝑅 18,750,000

To calculate the total cost, the result is:

𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝐻𝑖𝑟𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 + 𝐿𝑎𝑖𝑑 𝑂𝑓𝑓 𝐶𝑜𝑠𝑡 + 𝐿𝑎𝑏𝑜𝑟 𝐶𝑜𝑠𝑡 + 𝐻𝑜𝑙𝑑𝑖𝑛𝑔 𝐶𝑜𝑠𝑡
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝐼𝐷𝑅 25.000.000 + 0 + 𝐼𝐷𝑅 93.600.000 + 𝐼𝐷𝑅 18.750.000
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 𝑖𝑛 𝑆𝑒𝑝𝑡𝑒𝑚𝑏𝑒𝑟 = 𝐼𝐷𝑅 137,350,000

The total cost for period September 2017 until February 2018 is:
𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡 = 𝑇𝐶 𝑠𝑒𝑝𝑡 + 𝑇𝐶 𝑜𝑐𝑡 + 𝑇𝐶𝑛𝑜𝑣 + 𝑇𝐶𝑑𝑒𝑐 + 𝑇𝐶𝑗𝑎𝑛 + 𝑇𝐶𝑓𝑒𝑏
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = IDR 745,825,000

4.3 Transportation Method

In transportation data, the data will be used comes from the result of calculation
previous methods. The data is shown on Table 4.4.

Table 4.4 The Data Used in Transportation Method

Reguler
Production Rate 2.234 unit/worker/day
Time in One Cycle 188 Minute
Working Hour 7 Hours
Overtime
Working Hour 4 Hours
1 Product 188 Minutes
Production Rate 1.276595745 unit/worker/day
Cost
Reguler 130,000 worker/day
Overtime 30,000 /hour
Subcontract 50,000 /hour

The working-hour is assumed as 4 hour, it means the maximum person work for
overtime is 4 hours. There maximum total workers work for overtime is 12
workers. There will be 31 workers constantly work per month. Table 4.5 shows
the result of data that will be used. Assume the Overtime Worker is maximum
12. The days come from the total working days per month.

2-22
 Table 4.5 The Data Used in Calculation
Month Working Days Hour Worker Overtime Worker
Sep 17 24 168 31 12
Oct 17 26 182 31 12
Nov 17 26 182 31 12
Dec 17 22 154 31 12
Jan 18 24 168 31 12
Feb 18 23 161 31 12

The result of Subcontract is assumed as 200 per month. The Reguler Available
Capacity is found by the calculation below. The example is Reguler Available
Capacity for September 2017. The result will be round-down.
𝑅𝑒𝑔𝑢𝑙𝑒𝑟 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦
= 𝑃𝑟𝑜𝑑. 𝑅𝑎𝑡𝑒 × 𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐷𝑎𝑦𝑠/𝑚𝑜𝑛𝑡ℎ × 𝑊𝑜𝑟𝑘𝑒𝑟
𝑅𝑒𝑔𝑢𝑙𝑒𝑟 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 = 2.234 × 24 × 31 = 1,662.128

For the Overtime is found by calculation below. The example is calculation for
Overtime Capacity in September. The result will be round-down.
𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 =
𝐷𝑎𝑦𝑠
𝑃𝑟𝑜𝑑. 𝑅𝑎𝑡𝑒 𝑓𝑜𝑟 𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 × 𝑊𝑜𝑟𝑘𝑖𝑛𝑔 × 𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝑊𝑜𝑟𝑘𝑒𝑟
𝑚𝑜𝑛𝑡ℎ
𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 = 1.27 × 24 × 12 = 367.659

Table 4.6 The Capacity in Transportation Method

Available Capacity
Month Reguler Round Down Overtime Round Down Subcontract
Sep 17 1662.12766 1662 367.6595745 367 200
Oct 17 1800.638298 1800 398.2978723 398 200

2-23
 Table 4.6 The Capacity in Transformation Method (continued)
Month Reguler Round Down Overtime Round Down Subcontract
Nov 17 1800.638298 1800 398.2978723 398 200
Dec 17 1523.617021 1523 337.0212766 337 200
Jan 18 1662.12766 1662 367.6595745 367 200
Feb 18 1592.87234 1592 352.3404255 352 200

The cost for each month is the same for the period from September 2017 until
February 2018. The result of cost is determined by the calculation below (the
result will be round-up:
𝑅𝑒𝑔𝑢𝑙𝑒𝑟 𝐶𝑜𝑠𝑡
𝑅𝑒𝑔𝑢𝑙𝑒𝑟 𝐶𝑜𝑠𝑡 =
𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑅𝑎𝑡𝑒
𝐼𝐷𝑅 130,000
𝑅𝑒𝑔𝑢𝑙𝑒𝑟 𝐶𝑜𝑠𝑡 = = 𝐼𝐷𝑅 58,191
2.234

For the Overtime Cost:

𝑇𝑖𝑚𝑒 𝐶𝑦𝑐𝑙𝑒 𝑝𝑒𝑟 𝑈𝑛𝑖𝑡
𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝐶𝑜𝑠𝑡 = × 𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝐶𝑜𝑠𝑡/ℎ𝑜𝑢𝑟
60
188
𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝐶𝑜𝑠𝑡 = × 𝐼𝐷𝑅 30,000 = 𝐼𝐷𝑅 94,000
60

For the Subcontract Cost:

𝑇𝑖𝑚𝑒 𝐶𝑦𝑐𝑙𝑒 𝑝𝑒𝑟 𝑈𝑛𝑖𝑡
𝑆𝑢𝑏𝑐𝑜𝑛𝑡𝑟𝑎𝑐𝑡 𝐶𝑜𝑠𝑡 = × 𝑆𝑢𝑏𝑐𝑜𝑛𝑡𝑟𝑎𝑐𝑡 𝐶𝑜𝑠𝑡/ℎ𝑜𝑢𝑟
60
188
𝑆𝑢𝑏𝑐𝑜𝑛𝑡𝑟𝑎𝑐𝑡 𝐶𝑜𝑠𝑡 = × 𝐼𝐷𝑅 50,000 = 𝐼𝐷𝑅 156,667
60

Table 4.7 The Cost in Transportation Method

Cost
Month Reguler Overtime Subcontract
Sep 17 58191 94000 156667
Oct 17 58191 94000 156667
Nov 17 58191 94000 156667
Dec 17 58191 94000 156667
Jan 18 58191 94000 156667
Feb 18 58191 94000 156667

2-24
 Table 4.8 The Result of Calculation

Period
Sep-17 Oct 17 Nov-17 Dec 17 Jan-17 Feb-17
Period Demand
RT OT SC RT OT SC RT OT SC RT OT SC RT OT SC RT OT SC
1662 367 200 1800 398 200 1800 398 200 1523 337 200 1662 367 200 1592 352 200
Capacity 1662 367 200
Sep-17 1358 Cost 58191 94000 156667
Plan 1358
Capacity 304 367 200 1800 398 200
Oct 17 1651 Cost 133191 169000 231667 58191 94000 156667
Plan 1651
Capacity 304 367 200 149 398 200 1800 398 200
Nov-17 1689 Cost 208191 244000 306667 133191 169000 231667 58191 94000 156667
Plan 1689
Capacity 304 367 200 149 398 200 111 398 200 1523 337 200
Dec 17 1428 Cost 283191 319000 381667 208191 244000 306667 133191 169000 231667 58191 94000 156667
Plan 1428
Capacity 304 367 200 149 398 200 111 398 200 95 337 200 1662 367 200
Jan-17 1651 Cost 358191 394000 456667 283191 319000 381667 208191 244000 306667 133191 169000 231667 58191 94000 156667
Plan 1651
Capacity 304 367 200 149 398 200 111 398 200 95 337 200 11 367 200 1592 352 200
Feb-17 1789 Cost 433191 469000 531667 358191 394000 456667 283191 319000 381667 208191 244000 306667 133191 169000 231667 58191 94000 156667
Plan 1592 197
Total 1358 1651 1689 1428 1651 1592 197

2-25
 After calculating the result of total Reguler Time , Overtime, and Subcontract
result each period, the next step is claculating MPS or Master Production
Scheduling.
Table 4.9 Master Production Scheduling
Available Unused Production Planning Ending Total
Period Demand
Capacity Capacity RT OT SC Inventory Production
Sep 17 1358 1662 304 1358 0 0 0 1358
Oct 17 1651 1800 149 1651 0 0 0 1651
Nov 17 1689 1800 111 1689 0 0 0 1689
Dec 17 1428 1523 95 1428 0 0 0 1428
Jan 18 1651 1662 11 1651 0 0 0 1651
Feb 18 1789 1592 0 1592 197 0 0 1689
9369 197 100

It can be seen that the result of RT in September 2017 is 1,358. Reguler time
production for period Oct 2017 is 1,651, for November 17 is 1,800, for December
is 1,523, for January 2018 is 1,651, and February 2018 is 1,592. There is one
overtime production in February 2018, since the reguler time production cannot
cove the demand, it is 197 units. The result of Total Reguler time is 9,369 with
overtime is 197 and Ending Inventory is 100. The production cost calculation is
determined. The result is shown on Table .

Table 4.10 Production Calculation Cost

No. Cost Type Unit Cost/Unit Total Cost (in IDR)
1 Reguler Time 9369 58,191 545,191,479
2 Over Time 197 94,000 18,518,000
3 Holding Cost 100 75,000 7,500,000
4 Hiring Cost 11 2,500,000 27,500,000
Total Cost 598,709,479

Based on Table 4.10, the result of Transportation Method is 598,709,479 in IDR.

The Reguler Time is IDR 545,191,479, for the Over Time is IDR 18,518,000,
Holding Cost is IDR 7,500,000 and Hiring Cost is IDR 27,500,000.

2-26
 CHAPTER V
CONCLUSION

There are three methods used, Chase Strategy, Level Strategy, and Transportation
Method. All of the demand comes from the cylic regression analysis on Report
Forecasting (N=3). The total working days is 145 days. The result of total cost
calculation is shown on Table 5.1.

Table 5.1 The Summary of Aggregate Calculation

Result of Total Cost
Chase Strategy Level Strategy Transportation Method
IDR 610,065,000 IDR 745,825,000 IDR 598,709,479

Based on the result above, it can be seen that Transportation Method has the
lowest total cost. It can be concluded that the Transportation Method is the best
result for Cyclic Forecasting and the assumptions that has been shown.

2-27
 REFERENCES

Aggregate planning. (2017). Retrieved from production planning:

http://mcu.edu.tw/~ychen/op_mgm/notes/prod_planning.html
Management Study Guide. (2017, - -). What is Aggregate Planning? Retrieved
October 5, 2017, from Management Study Guide:
http://managementstudyguide.com/aggregate-planning.htm
Ong, J. O. (2013). Course Note Production Planning and Inventory Control.
Production Planning and Inventory Control, 70-71.
Robertson, T. (2017). The Advantages of Aggregate Planning. Retrieved from
small business: http://smallbusiness.chron.com/advantages-aggregate-
planning-16096.html

2-28