Application of Linear Program Based on Simplex Method in Profit Maximization of Wahyu Chips Business in Sidrap Regency South Sulawesi

Abstract

Application of Linear Program based on Simplex Method in Profit Maximization of Wahyu Chips Business in Sidrap Regency, South Sulawesi. Thesis of Business Administration Major, Faculty of Social Sciences and Law, Makassar State University. This study aims to determine the application of the linear programming model based on the Simplex method in optimizing production so as to achieve maximum profit at the Wahyu Chips Business. The type of research used is descriptive qualitative, which is an analysis used to create a systematic overview so as to provide solutions related to problems by applying the simplex method linear program in the production process to achieve maximum business profits. To achieve the research objectives, data collection techniques are used, namely observation, interviews, and documentation with four informants who are owners and employees of the Wahyu Chips Business.The results of the research by applying a linear program based on the simplex method assisted by the POM - QM for Windows V.5 application show that the Wahyu Chips Business has produced with production conditions almost reaching optimal conditions. To obtain maximum profit, Wahyu Chips Business must produce 1,933 pcs of balado banana chips, 3,500 pcs of original sweet potato chips, and 5,000 pcs of balado sweet potato chips, so that it will increase profits by 3% from the factual condition which is Rp. 2,625,377,-.