Abstract. This research aims to optimize the production of peanut bread at UKM Peanut Roti Hj. Eliya Lubis in Tebing Tinggi City. The main challenges faced are fluctuating raw material prices and unstable consumer demand, which affect the production process. The research uses the cutting plane method to complete an integer linear program to determine optimal production quantities. This method was chosen because it is effective in solving optimization problems with integer results, which are relevant for in-house production. The research results show that the cutting plane method is able to produce better optimal solutions than other methods, such as branch and bound, thereby increasing production efficiency and company profits. This research makes a significant contribution in helping SME entrepreneurs face intense business competition by managing resources more effectively and efficiently.