Nafia Rahma Rahma, Dwi Agustina Kurniawati, Noor Saif Muhammad Mussafi

Optimizing Production for Maximum Profit in Kripik Ma'Nung MSMEs Using CPLEX-Based Linear Programming

Introduction

Optimizing production for maximum profit in kripik ma'nung msmes using cplex-based linear programming. Optimize Kripik Ma'Nung's production for maximum profit using CPLEX-based linear programming. Achieved 21% profit increase and efficient resource use. A decision-support tool for MSMEs.

Abstract

Micro, Small, and Medium Enterprises (MSMEs) significantly contribute to the economic development of Indonesia. However, many MSMEs still rely on intuition and past experience rather than data-driven decision-making, resulting in suboptimal profit outcomes. This study aims to determine the optimal production combination to maximize profit in Kripik Ma’Nung, a halal-certified MSME that produces five types of traditional chips. A linear programming approach was applied using CPLEX Optimization Studio 22.1.2 to analyze real production data, including unit cost, production time, and selling price. The decision variables were the weekly production quantities of each chip type, subject to constraints on production cost and time. The initial production plan yielded a weekly profit of IDR 370,200 with a production time of 1,478.8 minutes. After optimization, the model suggested producing only 166 units of sale banana chips, which increased the profit to IDR 448,200, reduced production time to 1,377.8 minutes, and cut costs by IDR 78,000. These results demonstrate a 21% improvement in profit efficiency and highlight the effectiveness of linear programming as a decision-support tool. The study encourages broader adoption of optimization techniques among MSMEs to enhance resource utilization and operational decision-making.

Review

The paper "Optimizing Production for Maximum Profit in Kripik Ma'Nung MSMEs Using CPLEX-Based Linear Programming" addresses a highly relevant and common challenge faced by Micro, Small, and Medium Enterprises (MSMEs): suboptimal operational decisions driven by intuition rather than data. By focusing on Kripik Ma'Nung, an Indonesian halal-certified chip producer, the study provides a concrete application of linear programming to maximize profit through optimal production planning. This work is a valuable contribution, highlighting the potential for significant financial and operational improvements within the MSME sector, which is crucial for economic development. Methodologically, the study is sound. The application of linear programming, a well-established optimization technique, is highly appropriate for resource allocation and profit maximization problems under defined constraints. The use of CPLEX Optimization Studio, a powerful and industry-standard solver, adds credibility to the computational results. A significant strength lies in the analysis of real production data, including unit cost, production time, and selling price, which grounds the model in practical realities. The findings are particularly compelling: an initial weekly profit of IDR 370,200 was boosted by 21% to IDR 448,200, accompanied by reductions in both production time and cost. The model's recommendation to focus solely on "sale banana chips" is a striking example of how optimization can uncover non-obvious and highly efficient production strategies. While demonstrating clear benefits, the study's scope as a single case study naturally limits the direct generalizability of its specific production recommendations to all MSMEs. Future research could explore the model's robustness against market fluctuations, demand variability, and potential implications for product diversity and brand image if such a drastic reduction in product types were implemented. Additionally, elaborating on the nature of the "production cost and time" constraints would provide further insight into the operational boundaries. Nevertheless, the paper successfully underscores the profound positive impact that data-driven optimization techniques, even relatively straightforward ones like linear programming, can have on MSME profitability and efficiency. It serves as an excellent impetus for broader adoption of these tools among small businesses to foster more strategic and sustainable growth.

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