INTERNATIONAL JOURNAL OF SOCIAL SERVICE AND RESEARCH

 

EFFORT TO MAXIMIZE PROFIT AND OPTIMIZE� BOTH TIME� AND BUSINESS CAPITAL RESOURCES THROUGH THE DETERMINATION OF MANY SMALL, MEDIUM AND LARGE PACKING UNITS IN THE "ENY" TEMPE CHIPS HOME INDUSTRY

Lukas Susanto

PGRI Madiun University, Madiun, Indonesia

Email: [email protected]

 

Abstract

Tempe chips are a superior product in Ngawi Regency. Some home-industries of tempe chips have also been negatively affected by the COVID-19 pandemic, including a decline in sales, difficulties in raw materials, capital problems and obstacles to the production process. Various efforts to increase sales have been carried out both through mentoring and research, among others by trying to do online marketing and designing better tempe chips packaging designs, but there has been no good planning on product composition. From the interview, it is known that in determining the composition of the many packaging units of tempe chips and determining the selling price per unit, it is only based on experience while running a business and no optimization method has been used. �Therefore, it is necessary to apply an optimization method to obtain maximum profit. In this research, we try to determine the number of production units for each type of tempe chips packaging that produces maximum profit and determine efficiency in the use of cost and time resources. Data collection techniques are carried out by observation and interviews. �The simplex method was used to solve this research problem. �We found that the home industry reached the maximum profit at 661 units of small packaging and 269 units of large packaging which gained IDR 23600 and time was reduced to 9.29 h.

 

Keywords: maximizing profits; number of production units; simplex method

 

Received 7 October 2021, Revised 3 November 2021, Accepted 2021

 

 


INTRODUCTION

As we know, the COVID-19 pandemic has had a negative impact on UMKM, especially in the East Java region, including a decline in sales, difficulties in raw materials, capital problems to production process barriers. Various efforts to increase sales have been carried out both through mentoring and research, among others by trying to do online marketing (Imron & Nurdian, 2021), and tempe chips packaging designs (Jessica, at al. 2015).

To maintain its existence, especially during the COVID-19 pandemic, companies are required to be more observant in dealing with all existing problems and other problems that may arise. Analysis related to the composition of the number of production units, the efficiency of the production capital used, determining the selling price and optimizing other resources owned by the company need to be carried out carefully and thoroughly. Determining the composition of the number of production units in a company is the main thing that needs attention for planning, because this has a direct effect on the company's profit.

Determining the composition of the number of production units to maximize company profits by looking at the company's limited resources can be solved using a linear programming model. There are several ways to solve problems with a linear programming model, including the simplex method. The Simplex method is the solution of a linear program model whose solution is presented in the form of a graph before which calculations were carried out to find common ground on each axis. The general procedure is to transform a descriptive situation into a linear programming problem by determining the variables, constants, objective functions, and constraints so that the problem can be presented in graphical form and the solution interpreted (Suwirmayanti, 2017).

A company and all its resources such as energy, time, money and others, in order to achieve real growth requires professional management, with the aim of obtaining maximum profit while using minimal resources (production capital). This is nothing but one of the optimization problems in operations research (Chandra, 2015).

This research was conducted in the home industry "ENY", in Ngawi Regency, East Java, which daily produces Tempe Chips, which are served in 3 packages, namely small packages, medium packages and large packages. During the COVID-19 pandemic, this company continued to carry out the production process every day, but by reducing the production volume, namely 600 small packaging units, 80 medium packaging units and 250 large packaging units. At the time of observation, information was obtained that the production volume was fixed every day, and production costs were also relatively fixed. The composition of the number of units for each type of packaging of tempe chips produced, and the selling price of the product per unit, are determined on the basis of experience while running the business, so there is no optimal planning or analysis method.

Based on this condition, the researcher wants to help the owner of the company to make a plan about determining the composition of the number of units for each type of packaging of tempe chips that must be produced so that the company obtains maximum profit, while taking into account the limited resources available.

The purpose of this study is to solve the problems faced by the company, by discussing the determination of the number of small packaging units, medium packaging and large packaging that must be produced so that the profit is maximum, calculating the maximum profit value in one day, calculating the efficiency (decrease) in resource use. limited, namely production capital and production time.

Some of the limitations and assumptions in this study are the total number of units of the three types of packaging tempe chips produced is the largest equal to the total number of units produced before the study, the total production time is the largest equal to the total production time before the study, the production capital is at most equal to the capital production before the study, the results of calculating the maximum profit value will be achieved with the assumption that all products are sold out.

The results of this study are expected to provide benefits, input and suggestions, especially for company owners in making decisions to change the composition of many production units for each type of tempe chip packaging, in order to obtain maximum profit.

The problem faced by this company is the Linear Programming Problem (LPP). Because the problem consists of 3 decision variables, the simplex method in a linear program is the right method to solve the problems experienced by the company, by decomposition of the many product units produced based on the limited resources available, with the aim of obtaining maximum profit (Christian, 2013).

Linear programming is a mathematical method with linear characteristics to find an optimal solution by maximizing or minimizing the objective function against the set of constraints (Budiasih, 2013).

The simplex method is a mathematical procedure to find the optimal solution of a linear programming problem based on an iterative process (Aulia et al., 2013).

Linear programming is an optimization technique used to obtain the most optimal solution for a real world problem. There are simplex method. The simplex method provides two methods to solve linear programming problems, namely the graphical method and the a systematic way of examining the vertices of the feasible region to determine the optimal value of the objective function. The "linprog" function in Mat Lab can be used to solve linear programming problems (Velinov & Gicev, 2018). One method that can be used to solve LPP is the Simplex Algorithm in Linear Programs (Sukanta, 2016).

The following are several studies related to the application of the simplex method for the purpose of optimizing the completion of LPP. (Rumetna et al., 2020) conducted a study entitled �Optimizing Revenue Making Banners and Billboards Using the Simplex Method (Case Study: Shiau Printing Printing Business)�, from the analysis it is stated that Shiau Printing Printing can get a maximum profit of Rp. 15,000,000,- every month. (Fardiana, 2013) conducted a study entitled "Maximizing Profits at Martabak Doni Cake Shop with the Simplex Method", the results of data analysis are that the optimal combination of inputs obtained, will provide a maximum profit of Rp. 106,817,-. (Budiyanto, Mujiharjo, & Umroh, 2017) conducted a study with the title "Profit Maximization in the Roti Bunda Bakery Company Using the Simple Method" the results of the research were optimizing the use of resources, it would be able to increase profits from Rp. 1,663,914,- per week to Rp. 2,286,049,- per week. Akram, A. Sahari, and AI Jaya conducted a study entitled "Optimizing the Bread Production Method Using Branch And Bound" method Branch And Bound is solving technique that can be used not only on the LPP, but can be applied to a wide range of issues different. This method is used together with the simplex method (Akram, Sahari, & Jaya, 2016).

 

METHOD

Thinking Framework

Stages in the process of solving this research problem consist of:

1.     Identification of research variables, profit functions, and limiting functions,

2.     Compiling the problem into a mathematical model, in this case the form of linear program modeling,

3.     Changing the mathematical model into a table simplex,

4.     Perform an iterative process of solving with the algorithm in the simplex method, until the optimal table is obtained,

5.     Presenting the optimal solution in mathematical language,

6.     Interpreting the optimal solution of the research problem.

 

Data Collection Procedure

Collection was carried out by direct observation to the location and interviews, which were divided into two stages, as follows:

1.     Preliminary observation, this stage was carried out to see firsthand the general condition of the company, and notify the research objectives to the company owner, so that the company understands the usefulness of the research results later, besides that at this preliminary stage the researcher can give a message to prepare data related to the data needed in research,

2.     Data collection, at this stage interviews and clarification of the data that have been collected prepared by the owner, with the hope that detailed and in-depth information can be obtained, related to the analysis plan to be carried out.

Data Analysis Techniques

1.     Describing the Data.

In this step, the transformation process is carried out from raw data from interviews, which are all materials and resources needed in the production process, into data that is ready for mathematical modeling.

2.     The Identify Variables

making:

𝑋1 = Many units small packaging should be produced

𝑋2 = Many units medium packaging should be produced

𝑋3 = Many units large packaging should be produced

3.     Constraints

total unit Production: 𝑎11𝑋1 + 𝑎12𝑋2 + 𝑎13𝑋3� 𝑏 ≤1 (aij = 1, for every i and j)

Total cost: 𝑎21𝑋1 + 𝑎22𝑋2 + 𝑎23𝑋3�� ≤2

Total time: 𝑎31𝑋1 + 𝑎32𝑋2 + 𝑎33𝑋3�� ≤3

Functions Advantages 𝑍 = 𝑐1𝑋1 + 𝑐2𝑋2 + 𝑐3𝑋3

mathematical models of research problems in general:

Specifies 𝑋1, 𝑋2, and 𝑋3 with constraints:

𝑎11𝑋1 + 𝑎12𝑋2 + 𝑎13𝑋3�� ≤1 (aij = 1, for every i and j)

𝑎21𝑋1 + 𝑎22𝑋2 + 𝑎23𝑋3�� ≤2

𝑎31𝑋1 + 𝑎32𝑋2 + 𝑎33𝑋3�� ≤3

so that the values 𝑋1, 𝑋2, and 𝑋3 obtained will maximize the profit function 𝑍 = 𝑐1𝑋1 + 𝑐2𝑋2 + 𝑐3𝑋3. Furthermore, this mathematical model will be solved by the simplex method.

To complete the LPP the simplex method in the case of maximizing, mathematical models of LPP expressed as linear as follows:

Determine �

Which satisfy the constraint: 𝐴𝑚�𝑛𝑋𝑛�1 (, =)�1

Optimizing [𝑍1 � 1 = 𝐶1 �𝑛 𝑛𝑋�1].

Here are the steps to resolve the case of LPP to maximize the objective function in the simplex method:

1.     Turn all obstacles to the canonical form by adding a variable (variable) Slack's. The existing slack variables are added to the target function and given a coefficient of 0, Step 1 causes the matrix A to be of size mx (n+m) and contains an identity matrix of order m. Continue by compiling the initial simplex table,

2.     Determine the key column, which is to determine the incoming variable to be the new base variable.

J column is the key column ↔(𝑍𝑗 - 𝐶𝑗)>0 smallest,

3.     Determine the key lines that define variables which should be out long base being replaced by a new variable basis. I line is line ↔ key index i> 0, the smallest,

4.     𝑖𝑗𝑎 called a key element, doing surgery rows: row i i new = old / 𝑖𝑗𝑎

5.     Perform row operations on the other lines so that the elements sekolom the key element to 0,

6.     table ↔ were optimal for all j values(𝑍𝑗 - 𝐶𝑗)>0,

7.     If the table is not optimal return to step 2. (Sriwasito, Surarso, & Sarwoko, 2011).

To avoid data analysis with a lengthy iteration process, this study used POM QM for Windows software to help solve research problems.

 

RESULTS AND DISCUSSION

Data Description

Following is a description of the research data, which has been processed and reduced from the raw data obtained from interviews and observations.


 

Table 1

Observation Data

NO

NEED FOR

SMALL PACKAGING

MEDIUM PACKAGING

LARGE PACKAGING

MANY UNITS = 600

MANY UNITS = 80

MANY UNITS = 250

VOLUME

PRICE

VOLUME

PRICE

VOLUME

PRICE

1

Soybeans

36 kg

306.000

3 kg

25.500

45 kg

382.500

2

Ragi Tempe

4 ounces

20.000

2 ounces

4.000

5 ounces

25.000

3

Cooking Oil

36 L

396.000

3 L

33.000

45 L

495.000

4

Flour

36 kg

288.000

3 kg

24.000

45 kg

360.000

5

Garlic

8 ounces

20.000

2 ounces

4.000

1 kg

25.000

6

Pecan

4 ounces

12.000

2 ounces

6.000

5 ounces

15.000

7

Salt

4 ounces

4.000

2 ounces

2.000

4 ounces

4.000

8

Seasonings

5 gr

5.000

4 gr

4.000

5 gr

5.000

9

Eggseggs

12

12.000

0.5 kg

12.000

15 eggs

15.000

10

Coriander

3 ounces

6.000

2 ounces

4.000

3 ounces

6.000

10

WAGES

250.000

100.000

250.000

11

PACKAGING FEE

200.000

90.000

200.000

TOTAL

Rp 1.519.000

Rp 308.500

Rp 1.782.500

CAPITAL/UNIT

Rp 2.550

Rp 3.900

Rp 7.150

SELLING PRICE/UNIT

Rp 5.000

Rp 6.500

Rp 12.500

TOTAL TIME

950 MINUTES

729 MINUTES

1.010 MINUTES

 

 

Table 2

Description of Data Per Unit of Production

No

Type Packaging

Many Units

Total Cost

Total Time

 

Cost per Unit

 

 

Selling price per Unit

 

Time per Unit

Total Selling

 

Profit per unit

1

Small

600

1.519.000

950

2.550

5000

1,58

3.000.000

2.450

2

Medium

80

308.500

729

3.900

6.500

9,11

520.000

2.600

3

Large

250

1.782.500

1.010

7.150

12.500

4,04

3.125.000

5.350

TOTAL

930

3.610.000

2.689

-

-

-

6.645.000

-

 


From table 1, it can be calculated that the initial profit value = 6,645,000 � 3,610,000 = 3,035,000 rupiah.

 

Mathematical Modeling

�= Many small packaging units� produced

�= Many medium packaging units produced

�= Many large packaging units produced

The mathematical model of this research problem is :

Determining , , dan �with constraints :

Total Production Units :��

�

 

Total cost :

 

Total time �:

, , � �≥ 0

so that the values ​​of , , dan obtained will maximize, the profit function :�

�

The first simplex table, compiled by changing all the constraint functions in implicit form, by adding a slack variable , , �dan

�

 

 

 

≥ 0

 

The implicit form of the profit function:��������������������������������������������������
�

The first simplex table is:


 

Table 3

�Simplex First Table

Basis

X1

X2

X3

S1

S2

S3

H

S1

1

1

1

1

0

0

930

S2

2.550

3.900

7.150

0

1

0

3.610.000

S3

1,58

9,11

4,04

0

0

1

2.689

Z

-2.450

-2.600

-5.350

0

0

0

0


 

Furthermore, to analyze the research data used software POM QM for Windows. The input of research problem data into POM QM is shown in the following table:


 

Table 4

Input Data


X1

X2

X3

RHS

Equation form

Maximize

2450

2600

5350

Max  2450X1 +  2600X2 +  5350X3

Many units

1

1

1

<=

930

X1 + X2 + X3 <= 930

Production Cost/unit

2550

3900

7150

<=

3610000

2550X1 +  3900X2 +  7150X3 <= 3610000

Production Time/unit

1,58

9,11

4,04

<=

2689

1,58X1 +  9,11X2 +  4,04X3 <= 2689



 

 


Results of Data Analysis


The results of data processing using POM-QM are shown in the following tables:


 

Table 5

Linear Programming Result

 

X1

X2

X3

�

RHS

Dual

Maximize

2450

2600

5350

 

 

 

Constraint 1

1

2600

1

<=

930

842.39

Constraint 2

2550

3900

7150

<=

3610000

.63

Constraint 3

1.58

9.11

4.04

<=

2689

0

Solution

660.76

0

269.24

 

3059294.0

 


 

Table 6

Solution List

Variable

Status

Value

X1

Basic

660.76

X2

NONBasic

0

X3

Basic

269.24

slack 1

NONBasic

0

slack 2

NONBasic

0

slack 3

Basic

557.27

Optimal Value (Z)

 

3059294.0


 

Table 7

Iteration

Cj

Basic Variables

Quantity

2450 X1

2600 X2

5350 X3

0 slack 1

0 slack 2

0 slack 3

Iteration 1

 

 

 

 

 

 

 

 

0

slack 1

930

1

1

1

1

0

0

0

slack 2

3,610,000

2,550

3,900

7,150

0

1

0

0

slack 3

2,689

1.58

9.11

4.04

0

0

1

 

zj

0

0

0

0

0

0

0

 

cj-zj

 

2,450

2,600

5,350

0

0

0

Iteration 2

 

 

 

 

 

 

 

 

0

slack 1

425.1049

0.6434

0.4545

0

1

-0.0001

0

5350

X3

504.8951

0.3566

0.5455

1

0

0.0001

0

0

slack 3

649.2238

0.1392

6.9064

0

0

-0.0006

1

 

zj

2,701,188.75

1908.04

2918.18

5350

0

.75

0

 

cj-zj

 

541.958

-318.1818

0

0

-0.7483

0

Iteration 3

 

 

 

 

 

 

 

 

2450

X1

660.7609

1

0.7065

0

1.5543

-0.0002

0

5350

X3

269.2391

0

0.2935

1

-0.5543

0.0002

0

0

slack 3

557.2717

0

6.808

0

�� -0.2163

-0.0005

1

 

zj

3,059,293.5

2450

3301.09

5350

842.39

.63

0

 

cj-zj

 

0

-701.087

0

� -842.3913

-0.6304

0


 

Interpretation of Data Analysis Results

From the results of data analysis, several things can be explained as follows:

Table 7. It is an iterative process from the initial simplex table to obtain an optimal table that describes the optimal conditions with variable values ​​that have been obtained.

Table 6. illustrates the solution to the linear programming problem, it can be seen that the maximum profit value per production period that can be achieved is 3059294.0 rupiah, achieved at conditions X1 = 660.76, X2 = 0 and X3 = 269.24. If Xrounded up1 = 661 is, X2 = 0 and X3 = 269, this means that to obtain maximum profit, the company must produce 661 units of small packaging and 269 units of large packaging, with a maximum profit

of: Zmax = 2,450 (661)+2,600 (0)+5,350 (269) = 3,058,600, with production costs :

Optimal Production Cost = 2,550(661) + 3,900(0) + 7,150(269) = 3,608,900 rupiah (there was a decrease in costs production of 3,610,000-3,608,900 = 1,100 rupiah). From Table 6. The value of the slack 3 variable is 557.27, this shows that if the optimal conditions are implemented, the total time used is 557.27 minutes shorter than the previous total time. In real terms, it can be shown that: Total optimal time = 1.58(661) + 9,11(0) + 4.04(269) = 2.131.14 minutes. Time difference = 2.689 � 2.131.14=557.86 minutes (the difference is due to the above rounding).

In summary, the efficiency obtained by the company, after data analysis is presented in the following table:


 

Table 8

Efficiency of Research Results

 

Initial Condition

Final Condition

Efficiency

Production

600 units small pack

� 80 medium pack

250 units big pack

Number of units 930

661 units small pack

0 medium pack

269 units big pack

Number of units 930

-

Prod. Cost (Rp.)

3.610.000

3.608.900

1.100

Time (Minutes)

2.689

2.131,14

557,86

Profit (Rp.)

3.035.000

3.058.600

23.600


 

CONCLUSION

To be able to achieve a maximum profit of 3,058,600 rupiah, the company must produce 661 units of small packaging and 269 large packaging and the company gets an additional profit of 23,600 rupiah per production period,

Under optimal conditions, the total production cost becomes 3,608,900 rupiah, there is an efficiency (decrease) of 1,100 rupiah.

If the company runs production according to optimal conditions, the time required is 557.86 minutes less than the production time before the study.

 

 

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