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Abstract

The aim of this research is to find out and determine the amount of production with the lowest production costs at the Manik Sari Handicraft company. This research was conducted on stop door products and bottle opener products using an aggregate production planning system. Based on the research results, it shows that the estimated number of products produced over the next year is 31,310 units for stop door products and 22,850 units for bottle opener products, which is based on the moving average forecasting method averaging 2 months for both products. This method was chosen because it was able to provide the smallest standard error results as indicated by the MAPE values of 20.67 percent and 34.56 percent, respectively. The aggregate planning strategy with the chase strategy produces the lowest total production costs of IDR 125,149,613 for stop door products and IDR 91,399,854 for bottle opener products. The total costs are lower when compared to the total production costs for strategy and mixed strategy levels for both products. The theoretical implications of this research are to add references for academics who will conduct research on aggregate production planning, especially those who will use level strategy, chase strategy, and mixed strategy. Practical implications of research as a consideration for companies in calculating aggregate production planning.