Abstract
This study discusses the optimization model ofindustrial production planning in patchouli oil derivatives industry. Production planning always deals with uncertain demand. This industry, as addition, is also characterized with uncertain raw material supply. Taking those issues into consideration, the objective of this optimization model is to minimize the production cost, carrying, and backlogging costs. For the purpose.the forecasting methods used is moving averages method through software Oracle Crystall Ball while the linear programming model was optimized by Lingo software. The result shows that the model can streamline 19.09% of the actual conditions in the absence of planning. In addition, further analysis of efficiency can also be done by raising the purchase price of raw materials less than 1,67% if supplying to be under certainty
| Original language | English |
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| Publication status | Published - 2017 |
| Event | The 15th International Conference on Quality in Research (QiR 2017) - ID, Bali, Indonesia Duration: 1 Jan 2018 → … |
Conference
| Conference | The 15th International Conference on Quality in Research (QiR 2017) |
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| Country/Territory | Indonesia |
| City | Bali |
| Period | 1/01/18 → … |
Keywords
- Optimization, production planning, production costs, forecasting, uncertain supply