Profit Optimization with Linear Programming Simplex Method in MSMEs

Antoni; Hansen Reynoldtan; Hansen Wijaya; Juan Trinardi; Wilieam Vincent

doi:10.5281/zenodo.11509314

Authors

Antoni Department of Management Universitas Widya Dharma Pontianak, Pontianak, Indonesia
Hansen Reynoldtan Department of Management Universitas Widya Dharma Pontianak, Pontianak, Indonesia
Hansen Wijaya Department of Management Universitas Widya Dharma Pontianak, Pontianak, Indonesia
Juan Trinardi Department of Management Universitas Widya Dharma Pontianak, Pontianak, Indonesia
Wilieam Vincent Department of Management Universitas Widya Dharma Pontianak, Pontianak, Indonesia

DOI:

https://doi.org/10.5281/zenodo.11509314

Keywords:

Linear Programming, Simplex Method, Profit Optimization, MSMSe, Canteen Business

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.

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Author Biographies

Antoni, Department of Management Universitas Widya Dharma Pontianak, Pontianak, Indonesia

Antoni
Department of Management Universitas Widya Dharma Pontianak, Pontianak, Indonesia
Hansen Reynoldtan, Department of Management Universitas Widya Dharma Pontianak, Pontianak, Indonesia

Hansen Reynoldtan
Department of Management Universitas Widya Dharma Pontianak, Pontianak, Indonesia
Hansen Wijaya, Department of Management Universitas Widya Dharma Pontianak, Pontianak, Indonesia

Hansen Wijaya
Department of Management Universitas Widya Dharma Pontianak, Pontianak, Indonesia
Juan Trinardi, Department of Management Universitas Widya Dharma Pontianak, Pontianak, Indonesia

Juan Trinardi
Department of Management Universitas Widya Dharma Pontianak, Pontianak, Indonesia
Wilieam Vincent, Department of Management Universitas Widya Dharma Pontianak, Pontianak, Indonesia

Wilieam Vincent
Department of Management Universitas Widya Dharma Pontianak, Pontianak, Indonesia

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