Yuda Eka Pramono, Dwi Agustina Kurniawati, Noor Saif Muhammad Mussafi

The OPTIMIZATION OF PROFITS AND MANAGEMENT OF RAW MATERIAL STOCKS IN LAUNDRY SOAP MSMES USING INTEGER LINEAR PROGAMMING (ILP)

Introduction

The optimization of profits and management of raw material stocks in laundry soap msmes using integer linear progamming (ilp). Optimize laundry soap MSME profits and raw material stock using Integer Linear Programming (ILP). Maximize production efficiency and sales for regular and scented soaps.

Abstract

Abstract Micro, Small, and Medium Enterprises (UMKM) have an important role in the economy, including in the household soap industry. The main problems that are often faced are the management of raw materials and the determination of the amount of production that is not optimal. This study aims to optimize sales profits and the efficiency of the use of raw materials in laundry soap UMKM in Gombong Village, Warungpring District, Pemalang Regency by using the Integer Linear Programming (ILP) method. The data was obtained through direct interviews with UMKM owners and processed using the IBM ILOG CPLEX Optimization Studio. The optimization model is built on two types of products, namely regular soap and soap plus fragrance, taking into account the availability constraints of active ingredients, clean water, liquid fragrances, and plastic bottles. The optimization results showed that the optimal production amount was 47 bottles of regular soap and 53 bottles of soap plus fragrance, with a maximum profit of Rp267,500. This study shows that the ILP method is effective in supporting measurable and efficient production decision-making.    

Review

This paper presents a valuable application of Integer Linear Programming (ILP) to optimize profit and raw material utilization within Micro, Small, and Medium Enterprises (MSMEs) in the laundry soap industry. The study effectively addresses a common and critical challenge faced by MSMEs: suboptimal production planning and raw material management. By focusing on a specific case in Gombong Village, Pemalang Regency, the research aims to provide a practical solution using a well-established quantitative method to enhance business operations. A key strength of this work lies in its direct applicability and the clarity of its problem formulation. The authors clearly define two product types (regular soap and soap plus fragrance) and incorporate pertinent constraints such as the availability of active ingredients, clean water, liquid fragrances, and plastic bottles. The use of IBM ILOG CPLEX Optimization Studio for data processing lends credibility to the computational rigor. The concrete results, indicating optimal production quantities (47 bottles of regular soap, 53 bottles of soap plus fragrance) and a maximum profit of Rp267,500, provide actionable insights that can directly benefit the target MSMEs. While the abstract emphasizes "management of raw material stocks" in the title, the primary focus outlined in the abstract is on the efficiency of *use* and *availability constraints*, rather than dynamic stock management strategies. Overall, this study offers a compelling demonstration of how ILP can empower small businesses with data-driven decision-making, leading to more measurable and efficient production processes. The findings are highly relevant for the specific MSMEs studied and provide a strong case for the broader adoption of optimization techniques in similar contexts. Future research could extend this model to incorporate dynamic raw material pricing, demand fluctuations, or explore multi-period planning to further enhance the "management of raw material stocks" aspect, moving beyond static availability constraints. This paper lays a solid foundation for such advancements.

Full Text

Comments

You need to be logged in to post a comment.