Production Planning of Hierarchical Multi Products for Pharmaceutical Industry by Combination Approaches of Make to Stock & Make to Order Strategies (A Case Study of Capsule and Tablet Product of PT "X")

Hilda Syaidatul Ulfah, Endang Prasetyaningsih, Reni Amaranti


A pharmaceutical company that produces medicine with a variety of types and large items of products experiences problems related to the condition of stocks buildup and delay of backorder fulfillment due to current production planning procedure applied. This study aims to improve the current production planning with hierarchical production planning framework that includes three stages of planning: stage of identification and partitioning product strategies of MTS and MTO; stage of production planning for MTS products –covering forecasting demand, determination of Master Production Schedule (JPI) through aggregate and disaggregate planning and JPI validation with rough-cut capacity planning; and stage of production planning for MTO product. Based on the calculation, the proposed procedure can lower the total cost of production value by 9%, the level of safety stock by 49%, and order fulfillment lead time by 53%. This shows that the proposed procedure of production planning can provide significant savings and improve current performance.


Hirarchical Production Planning (HPP), Combined MTS-MTO environtments, Aggregat Planning, Disagreggregat Planning.


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