Open AccessOptimal Production Quantity in Rubber Industry
Author(s) -
Ikhsan Siregar,
I Rizkya,
R M Sari,
Khalida Syahputri
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/851/1/012001
Subject(s) - production (economics) , product (mathematics) , business , production planning , consumer demand , order (exchange) , natural rubber , marketing , operations management , industrial organization , economics , microeconomics , finance , mathematics , chemistry , geometry , organic chemistry
The increasing demand for rubber makes rubber production companies continue to make improvements in production planning determination continuously in order to meet consumer demand. The largest rubber production company in Indonesia is still experiencing problems in its production activities. In some periods the company still often experiences production mismatches with consumer demand, especially in Centrifuged Latex products as the highest demand product. The incompatibility of the quantity of demands with the production amount results in the emergence of other costs and the company loses the chance to get maximum income. Consequently, it is essential to analyse the company making planning activities using the goal programming method. Based on the outcomes of data processing carried out, company profits with goal programming solutions of Rp. 43.778.032.320, which is an increase of 0,99% compared to production according to consumer demand. The percentage increase in profits is relatively small, this is shows that the production planning carried out by the company is optimal.