Improving Coffee Xyz’s Production Planning Using Forecasting and Master Production Schedule

Abstract

The objective of this study is to improve Coffee Xyz's production planning method by using sales forecasting and Master Production Schedule (MPS). We use Simple Moving Average (SMA) to forecasting. Simple Moving Average is one of the forecasting methods that works by calculating the average over a specific time span backwards without using weighting. This method is used for data that is unstable, no noticeable trend or seasonality.and does not use weighting. By considering cafe XYZ, which is included in the micro, small, and medium-sized enterprise (MSME) that does not employ forecasting or MPS in it's production, we recommend that Cafe Xyz implement production planning with forecasting and a Master Production Schedule (MPS) to help them anticipate stockout, increase production efficiency, and better control costs by estimating material requirements more accurately and avoiding waste in raw material purchases.