Optimization of fresh fruit bunches as crude palm oil production material | Zendy

Kamal Basri Siregar | Zendy; K Syahputri | Zendy; I Rizkya | Zendy

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Optimization of fresh fruit bunches as crude palm oil production material

Author(s) -

Kamal Basri Siregar,

K Syahputri,

I Rizkya

Publication year - 2020

Publication title -

iop conference series materials science and engineering

Language(s) - English

Resource type - Journals

eISSN - 1757-899X

pISSN - 1757-8981

DOI - 10.1088/1757-899x/725/1/012072

Subject(s) - maximization , procurement , production (economics) , constraint (computer aided design) , palm oil , business , purchasing , factory (object oriented programming) , production planning , continuous production , variable cost , agricultural engineering , operations management , environmental economics , computer science , agricultural science , economics , microeconomics , mathematics , marketing , engineering , environmental science , geometry , accounting , environmental engineering , programming language

The increasing demand for Crude Palm Oil (CPO) makes palm oil production companies continue to improve production planning continuously in order to meet customer demand. Companies that are engaged in CPO production in the Medan city experience problems are not optimal due to companies are often faced with a situation in the form of a production mismatch with the volume of demand due to demand fluctuation. Therefore it is necessary to optimize the procurement of CPO by using linear programming methods. This method is used to maximize or minimize the resources owned by the company with several decision variables, objective functions and constraint functions. The results shows that the decision variables used are CPO cost, the cost of procurement using their own FFB, purchasing FFB cost and processing costs. The objective function is the maximization of company resources and constraint functions consisting of the maximum capacity of the factory, the availability of purchase FFB, the purchase quota of FFB, the availability of direct labor, processing transfers and processing costs.

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