Profit optimization with linear programming simplex method in MSMEs

Antoni, Antoni and Hansen, Reynoldtan and Hansen, Wijaya and Juan, Trinardi and Wilieam, Vincent (2024) Profit optimization with linear programming simplex method in MSMEs. Researcher Academy Innovation Data Analysis (RAIDA), 1 (1): 3. pp. 14-18. ISSN 3063-1092

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Abstract

This study explores the application of linear programming (LP) using the Simplex Method to optimize profit in the Chandra Canteen, a well-established canteen located in Pontianak, Indonesia, operating for over a decade. The focus is on two popular products, dry noodles and soup noodles, which significantly contribute to the canteen's revenue. The research adopts a quantitative approach, utilizing data on these products to develop a mathematical model that aims to maximize profit. Linear programming, a method used to find the optimal solution by either maximizing or minimizing an objective function within a set of constraints, is applied. The study successfully demonstrates that the optimization of the canteen's operations through this method results in a maximum profit of IDR 70,000. The findings highlight the effectiveness of LP in enhancing business performance in small and medium-sized enterprises (MSMEs) in the food service sector.

Item Type: Article
Uncontrolled Keywords: Linear programming, Simplex method, Profit ptimization, MSMEs, Canteen business, Quantitative research, Food service sector, Profitability, Small scale enterprises
Subjects: Economics and Business > Domestic Commerce, Marketing, & Economics
Depositing User: Hestianna Nurcahyani
Date Deposited: 19 Oct 2024 08:45
Last Modified: 19 Oct 2024 08:45
URI: https://karya.brin.go.id/id/eprint/49807

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