Optimizing Production and Profits Using Linear Programming in Small Industry of Wooden Furniture from Community Teak Forests

FoEh, John E.H.J.

Dinasti International Journal of Education Management and Social Science
Vol. 6 No. 3 (2025): Dinasti International Journal of Education Management and Social Science (Febru

This research aims to determine the level of furniture production that enables optimal profits from MSMEs[1] Wooden Furniture from Community Teak Forests. This industry is located in Jakarta and uses sawn teak wood which comes from community teak forests in West Java and its surroundings. This study utilizes secondary data from a small industrial business (CV. Meubel Jaya), along with interviews with management and technical staff regarding the production process, raw materials, supporting materials, and the production timelines for each type of furniture manufactured. The analysis is conducted using Integer Programming, with the aid of QM for Windows software version 5.3. The constraint functions considered include raw materials such as teak wood, various supporting materials for furniture production, and labor hours required to manufacture each product. The analysis reveals that only specific types of furniture can maximize profits for MSMEs specializing in People's Teak Wood Furniture. The recommended monthly production includes 4 single-door cupboards, 8 table sets with 6 chairs, 2 table sets with 4 chairs, and 1 bed measuring 180 x 200 cm, yielding an optimal profit of Rp. 43,200,000. This strategy demonstrates that focusing on these four furniture types increases profits by 158% compared to the current production of 11 furniture types, which generates only Rp. 27,225,000, resulting in a profit difference of Rp. 15,975,000.Keywords: Small Wood Furniture Industry, Community Teak Wood Forests, Profit Optimization, Integer Programming, QM for Windows. [1] MSMEs refer to productive enterprises owned by individuals or business entities that fall within specific categories. These categories include micro, small, and medium businesses, each defined by certain financial criteria, Micro Businesses, Operate with a maximum business capital of IDR 1 billion and annual sales not exceeding IDR 2 billion. Small Businesses, have business capital ranging from over IDR 1 billion to a maximum of IDR 5 billion, with annual sales revenue between more than IDR 2 billion and up to IDR 15 billion. Medium Businesses, operate with business capital exceeding IDR 5 billion but not more than IDR 10 billion and annual sales revenue between more than IDR 15 billion and up to IDR 50 billion.