Optimization of production planning using integer linear programming method (case study of bakpia menik)

Abstract

Bakpia Menik is a Small and Medium Enterprise (UKM) which operates in the field of bakpia production. Bakpia is one of the local cakes which is the main souvenir from Yogyakarta, so there is a big potential for increasing production. However, SMEs still lack production management planning to optimize resource use. So it is difficult to capture this big opportunity to maximize profits for SMEs. Seeing these problems, this research designed an integer linear programming mathematical model to optimize profits by using existing resources. Integer Linear Programming (ILP) is a mathematical model for maximizing profit and minimizing cost based on a mathematical model involving integer variables represented in a linear relationship. This research produces an integer linear programming model that presents the variables, resources, and constraints of Bakpia Menik. The model output shows that the optimal production amount by maximizing resource use is 31232 units and the maximum profit is IDR 33,431,750. From the model output, it can also show the advantages and disadvantages of Bakpia resources, so that resource availability planning can be carried out which can minimize holding costs.