Goal Programming Model to Optimize the Amount of Gauze Production

Abstract

PT KHW is a company engaged in the manufacture of cotton and gauze for health and cosmetic purposes. The gauze products produced by the company sometimes exceed the number of consumer demands and sometimes there is a shortage of products. Therefore, good production planning in order to meet consumer demand with the right amount and the right time is needed so the increased profits are obtained. This study aims to determine the optimal amount of production, determine the profits obtainedby the company and determine the production costs that must be incurred by the company. This study uses the goal programming method to optimize the amount of production by determining the decision variables, constraint functions and target functions.The goal functions are arranged based on the priority level desired by the company. The goal priorities considered include thegoal of maximizing the amount of production, maximizing product sales profits, minimizing production costs, minimizing the use of rawmaterials, maximizing production time, and minimizing overtime.