Application of Sequential Linear Goal Programming Method and Modified Simplex Method for Production Planning Optimization

Abstract

Production planning is an important thing in company management. Every company aims to seek maximum profit in its business activities, so it must be able to utilize its resources as optimally as possible. This study was conducted to determine whether or not any production planning that has been implemented at Istana Roti Hilyah Bakery is optimal. This research aimed to maximize revenue and profit, minimize production costs and raw material usage and optimize production quantities using the sequential linear goal programming method and the simplex modification method with the assistance of LINGO software. Based on the study's results, the revenue increased by IDR 60,000, and the profit increased by IDR 66,679. The minimization value of production costs decreased by IDR 6,679, with the production amount of White Bread as many as 60 pcs, Almond Crumble Bread as many as 45 pcs, Chocolate Crumble Bread as many as 50 pcs, Wheat Bran Bread as many as 55 pcs, Sweet Comb Bread as many as 82 pcs and Jam Comb Bread as many as 84 pcs.