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A ceramic company in Mojokerto is facing problems in achieving optimal profit due to machine capacity constraints and production targets. The study aims to identify the best solution by considering these factors. The simplex linear programming method with LINGO is used to find the optimal production solution. The results show to achieve an optimal profit of Rp 680,963,542, the company needs produce 14,815 m2 of 60×60 granite, 21,297 m2 of 60×60 ceramic, 8,334 m2 of 60×120 ceramic. Compared to the initial profit of Rp 659,860,250, the simplex method resulted an increase of Rp 21,103,292. Sensitivity analysis showed optimal production, with the deducted cost for each variable at zero. The range of price changes showed that a decrease in price to the lower limit would generate revenue of IDR 625,515,731, while an increase to the upper limit would generate IDR 745,599,549. This shows the flexibility in adjusting prices to maximize profits.
Alfan et al. (Tue,) studied this question.