Available online at http://iorajournal.org/indx.php/orics Operations Research: International Conference Series Vol. 1, No. 1, pp. 1-12, 2020 Analysis of the Aggregate Heuristic Planning for Planning and Controlling the Amount of Production to Minimize Costs Riana Magdalena Department of Industrial Engineering, Faculty of Engineering, Atma Jaya Catholic University, Indonesia Corresponding author: riana.magdalena@atmajaya.ac.id Abstract PT.XYZ is one of the companies engaged in the automotive manufacturing industy, where it produces spare parts for cars, motorcycles and trucks. Along with marketing and producing the products, PT.XYZ continues to implement customer satisfaction and the quality of spare parts produced. The company must anticipate the possibility of production capacity limitations; this must be done as well as possible at the minimum cost. For that, the aggregate heuristic planning is proposed for planning the establishment of a level for production capacity to meet the level of demand obtained from orders with the aim of minimizing total production costs. Aggregate Planning is a process of determining the level of overall production capacity to meet the level of demand obtained from forecasting and order with the aim of minimizing the total cost of production. In this study, three heuristic methods were tried, namely labor control method, subcontracting mixed method, and overtime mixed methods. Based on the results of the study it is known that the subcontracting mixed method is the best method with total aggregate cost of IDR 3,080,689,770, then the labor control method with a total of aggregate cost of IDR 3,080,798,198 and the overtime mixed method, with a total aggregate cost of IDR 3,081,815,315. Keywords: Aggregate planning, heuristic method, labor control, subcontracting mixed method 1. Introduction PT.XYZ is a company engaged in the field of automotive manufacturing, where the company produces automotive spare parts that will be marketed to automotive companies such as Astra Daihatsu Motor, Hino Motors Manufacturing Indonesia, And Motorcycles, Mekar Armada Jaya and many more. PT.XYZ uses a make to order production system, where companies will conduct qualitative forecasting every month based on the experience of the Production Planning and Inventory Control (PPIC) to determine the amount of raw material requirements. The core is increasing if it handles the requests of the 19 permanent customers. Of course the constraints that will become the company's main target is increasing productivity in anticipation of increasing consumer demand through limited production capacity. Therefore, in anticipating the possibility of inadequate production capacity, planning of capacity requirements must be carried out as well as possible at the minimum cost. e-ISSN: 2722-0974