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

Sri Handayani; irmayani Noer; Sri Puji Lestari

doi:10.32535/ijafap.v9i3.5047

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

Sri Handayani, irmayani Noer, Sri Puji Lestari

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.

Keywords

Linear Programming, Production Optimization; Cassava; SME Profitability

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DOI: https://doi.org/10.32535/ijafap.v9i3.5047