Optimization of Production Planning Using Goal Programming and Inventory Control Based on Demand Forecasting Using Neural Networks on CV Bahyu Perkasa

Abstract

CV Bahyu Perkasa is a company engaged in the concrete construction industry. One of the products produced is paving block. The number of fluctuating demands makes the company decide to stockpile products and procure raw materials regularly to meet consumer demand. This was Born in over-production and overstock. Therefore, a consumer demand forecasting method is needed so that it can minimize production costs and maximize profits. In addition, inventory control methods are needed to reduce storage costs and ordering costs for raw materials. The method used for demand forecasting is an artificial neural network with an MSE error accuracy rate of 0.017769. Forecasting results are used to optimize production planning using goal programming and inventory control planning using MRP. The results of the goal programming optimization model with priority determination produce an optimal solution in fulfilling consumer demand and minimizing production costs of Rp. 99,205,774.00.