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Journal : Journal of Industrial Engineering Management

COMPARATIVE ANALYSIS OF MOVING AVERAGE AND DOUBLE EXPONENTIAL SMOOTHING METHODS FOR FORECASTING ASTM A252 GR 2 PIPE DEMAND AT PT XYZ Agustin, Ardita Dwi; Momon S, Ade; Suseno, Agustian; Maulidin, Wildan Fatchan
Journal of Industrial Engineering Management Vol 9, No 3 (2024): Journal of Industrial Engineering and Management
Publisher : Center for Study and Journal Management FTI UMI

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33536/jiem.v9i3.1897

Abstract

Raw material inventory planning is a crucial aspect in the manufacturing industry to ensure smooth production and cost efficiency. However, PT XYZ has not implemented a forecasting method in its raw material planning system, so that procurement decisions are still reactive to actual demand. This study aims to analyze and compare forecasting methods using Double Exponential Smoothing (DES) and Moving Average (MA) to determine the most accurate method in projecting raw material needs for Non-API spec pipe products, type ASTM A252 GR 2 at KT 24 PT XYZ. The data used is historical demand data, which is then analyzed using POM-QM for Windows software. The results of the analysis show that the Moving Average method with a two-month period (MA-2) has the smallest Mean Squared Error (MSE), which is 182067, and a Mean Absolute Percentage Error (MAPE) value of 1.24%, which indicates a higher level of accuracy than other methods. Thus, the MA-2 method is recommended to be implemented in PT XYZ's raw material planning system to improve production efficiency and reduce the risk of excess or shortage of stock. For further research, it is recommended to develop a forecasting model by considering external factors such as market trends and seasonality, and integrating machine learning or hybrid forecasting methods to improve prediction accuracy. In addition, the implementation of an Enterprise Resource Planning (ERP)-based system with a forecasting module can also be a solution for long-term planning efficiency.
Co-Authors A'lala, Alvin Kurnia Abdurrohman, Mumun Fadhilah Adimas Ristansyah, Ferry Aditiya Rizka Ramadhan Agus Dwi Susanto Agustian Suseno Agustin, Ardita Dwi Ajeng Chintawati Dewi Aldi Pratama Ardhi Prasetyo Buono Arya Rinanto, Muhammad Rafi Ayunda Zuserain Billy Nugraha Claodio, Antoni Damara Widi Ardiatma Debi Yulian Dene Herwanto Dika Almahdi Dyas Marsa Pranoto Elsya Maharani Fauzi Amin, Moh. Rizha Fawzy Muhammad Bayfurqon Fery Darus Nasution (Universitas Singaperbangsa) Firmansyah, Abdullah Fitriani, Risma Ghika Smarandana Gustiandikha Saputri Hafizh Hakim Hidajat Hakika Syaula Nurrajab S.P Husniyah, Ulfah Indah Nursyamsi Jauhari Arifin Khurul Ainy Kusnadi, Kusnadi Lulu Firyal Amalia Lutvi Ayu Andresta Malik Ij, Falih Abdul Martin, Riky Maulidin, Wildan Fatchan Mochamad Ilham Aziz Mochamad Ilham Aziz Mohammad Al-Farizi Fian Saputra Muhammad Faris Raffa Dzakiy Muharram, Ari Mumun Fadhilah Abdurrohman Nabila Aulia Gunanti Nasution, Bakhtiar Alam Naufal Zuhair Dzulfiqar Naura Mutia Astari Niken Chaerunnisa Nugraha, Asep Erik Nugroho Dimasuharto Nugroho Dimasuharto Nurhayati, Sinta Okky Jayadi Pratama, Fachri Dio Putri, Nirmala Rahma, Rana Ardila Rahmi, Hayatul Rayshita Dewi, Syafira Inzani Rianita Puspa Sari Risma Fitriani Rizky Wahyudin Rosyiidi, Thoriqi Salim Fikri Setyanto, M. Ulfi Akhsan Shakty Adhea Aditya Sri Widiyanti Putri Sudjiand Arya Kresna Supriyatna, Muhamad Tia Novianti Putri Tiara Tafana Nurmala Hamzah Wafiq, Ahmad Wahyudin Wahyudin Wahyudin Wahyudin Wahyudin Wahyudin Wicaksono, Rizky Adib Zehan Maulana