Production Planning And Control Of Crude Palm Oil And Palm Kernel Using The Economic Production Quantity Multi Item Model (Case Study : PT. Socfin Indonesia)

Production is a process of converting input value into an output value which is a continuous process that Production is a process of converting input value into an output value which is a continuous process that 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) or optimal production level is the quantity of products produced by minimizing the total cost of inventory, including production setup costs and storage costs. Multi-item manufacturing processes usually produce a large number of products that are produced on the same machine or on the same production line. From the historical CPO data, the forecasting method used is single exponential smoothing where the amount of estimated demand each year is 5,514,552 kg, while from the historical PK forecasting, the forecasting method used is double exponential smoothing where the amount of estimated demand each year is 471,072 kg. Based on the calculations carried out, the number of production cycles (production run) in 12 months or one year is 2.7 cycles, so that the ideal EPQ for one cycle of each item of goods is obtained, namely 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 doing planning using EPQ Multi Item, the company will be able to minimize total costs by 21% each year.