OPTIMIZATION OF PRODUCTION AND BENEFITS OF USING LINEAR PROGRAMMING IN THE LINGGARJATI FURNITURE BUSINESS

Abstract: Massive exploitation of natural forests and concentration in the plywood industry until the late 1980s caused Indonesia to currently experience a shortage of raw materials for the secondary (meuble) industry. Especially for teak, currently many furniture industries depend on the supply of sawn wood from the surrounding community forests. This study intends to determine the level of furniture production from PT. Linggarjati which relies on the sawn timber industry from the surrounding community forests in order to generate optimum profits. The secondary data used in this study were obtained from the company with interviews for data clarification which include, the production process, raw materials, supporting materials and implementation time related to each type of furniture produced. The analysis method uses Linear Programming with the help of ExcelQM software for Mac version 5.3. The constraint function used is teak wood raw material, various supporting materials for making furniture and labor hours. The results showed that only some types of furniture can be produced to provide optimal profit for Linggarjati furniture, among others; 3 three-door cabinets, 4 table sets with 6 chairs and 10 beds measuring 180 x 200 cm. From the combination of these products, it can produce an optimal profit of Rp. 33,518,275,- The results of this analysis show that the three types of furniture alone can provide a greater profit of 78.5% compared to producing and selling the 11 types of furniture that currently exist, the profit is only Rp. 18,776,693,- or with a difference of Rp. 14,741,582,- Keywords: Wood Furniture Industry, Optimization, Linear Programming, and ExcelQ