International Journal of Accounting & Finance in Asia Pasific
Vol 9, No 3 (2026): October 2026

Optimizing Production Planning in Cassava-Based Snack MSMEs Using Linear Programming: A Case Study from Pesawaran Regency

Sri Handayani (Politeknik Negeri Lampung)
irmayani Noer (Politeknik Negeri Lampung)
Sri Puji Lestari (Unknown)



Article Info

Publish Date
20 Oct 2026

Abstract

Small and Medium Enterprises (SMEs) in the cassava-processing sector frequently face low profitability due to traditional processing techniques, capital limitations, and suboptimal scales of production. This study analyzes the profitability of cassava-based snack MSMEs in Pesawaran Regency, Indonesia, and determines the optimal product mix required to maximize operational profits.Data obtained from local SME managers were modeled using Linear Programming (LP) across three primary product categories: kelanting (X1), cassava chips (X2), and mangle crackers (X3). The optimal decision model, formulated as MaxZ= 5.75X2.  Based on the generated model, it is determined that the optimal production quantity for a cassava-based snack business is 131,250 kilograms of cassava chips, resulting in a maximum profit of IDR 754,688 per production cycle. This optimization approach provides important insights for planning the production of cassava-based snacks on a small and medium enterprise (SME). Additionally, shadow price evaluation shows that expanding labor input yields a marginal profit increase of IDR 35,938 per unit. These findings suggest that agro-industrial MSMEs should streamline resource allocation toward high-margin specialization and labor optimization to achieve sustainable profitability.

Copyrights © 2026






Journal Info

Abbrev

IJAFAP

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

IJAFAP aims to feature narrative, theoretical, and empirical-based research articles within the abovementioned fields. The journal welcomes articles relating to the current issues of financial decision making as well as its impact on society. IJAFAP carries out the mission to feature narrative, ...