Maximum Profit Analysis of Backpack and Sling Bag Production Using the Revised Simplex Method with LINGO Software

Abstract

Operations research is a quantitative approach that integrates science, mathematics, and logic to solve problems optimally, especially in managing limited resources. In this study, an experiment was conducted using the 2-phase method which aims to optimize production costs in a textile company that produces 2 types of fabrics. In this study, there are several main constraints faced by the textile company, namely the availability of cotton, water, and the time needed by the machine to produce two types of fabrics, namely cotton and silk. In the context of this study, the main constraints faced by textile companies include the availability of cotton, water, and machine time to produce two types of fabrics, namely cotton and silk. To achieve an optimal solution, mathematical modeling is carried out using the 2-Phase method, which consists of two stages: to ensure a feasible solution in the first stage and to find the optimal solution in the second stage. The analysis activity was carried out using TORA software to facilitate the iteration and calculation process. So that it can produce a more efficient and accurate solution than manual calculations. This study shows that the use of the 2 Phase method provides more efficient results so that a company achieves the desired target and also the appropriate cost. This experiment emphasizes the importance of a quantitative approach in decision making in the manufacturing industry so that a company can achieve optimal targets.