ANALYSIS MAXIMUM PROFIT AND OPTIMIZATION OF DISTRIBUTION COSTS AND PRODUCT ALLOCATION BAKERY OLD BAKERY SIMPLEX METHOD
DOI:
https://doi.org/10.35261/barometer.v11i1.13184Abstract
This study aims to analyze production optimization strategies and distribution cost efficiency in Baker Old MSMEs through the application of Simplex and Transportation methods. The main problem faced by MSMEs is the high cost of distribution and the use of production resources that are not optimal, so that the profits obtained have not reached the maximum level. The research uses a quantitative approach with the collection of primary data through direct observation and interviews with owners, employees, and customers to obtain a real picture of the production and distribution process. The data analyzed includes the type of product, raw material needs, cost and distribution distance, and profit margin of each product. The analysis process was carried out using POM-QM Software for Windows with two optimization models, namely the Transportation model to minimize distribution costs and the Simplex model to maximize production profits by considering the limitations of raw materials such as wheat, eggs, and sugar. The results showed that the Least Cost (LC) method and Vogel's Approximation Method (VAM) resulted in a minimum distribution cost of Rp6,600,000, while the North-West Corner (NWC) method resulted in a higher distribution cost, which was Rp9,120,000. In addition, the application of the Simplex method showed an optimal solution by focusing production on product B as many as 20 units, which resulted in a maximum profit of Rp220,000. Transportation and Simplex are effective in helping MSMEs efficiently manage limited resources, increase profitability, and support data-driven decision-making. The next study is suggested to consider dynamic factors such as changes in demand and fluctuations in raw material prices so that the optimization results are more adaptive and sustainable, resulting in a maximum profit of Rp220,000. These findings prove that the combination of Transportation and Simplex methods is effective in helping MSMEs manage resource constraints efficiently, increase profitability, and support data-driven decision-making. Further research is recommended to consider dynamic factors such as changes in demand and fluctuations in raw material prices so that optimization results are more adaptive and sustainable.
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