14th International Conference on Industrial Engineering and Operations Management

Enhancing Profit Maximization Strategies: A Case Study of the Songket Industry in Indonesia

Yuana Delvika & Akshay Dvivedi
Publisher: IEOM Society International
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Track: Optimization
Abstract

The primary aim of this study is to design an optimal production unit within the constrain of the existing workforce, aimed at maximizing profitability in the songket industry, which had been significantly impacted by pandemic. The industry faced a sharp decline in orders, leading to a substantial reduction in income and increased costs. To address these challenges, the industry reduced its workforce. With the gradual recovery of industry conditions, customer orders have resumed. However, effective strategies are needed to manage customer demand while optimizing the existing workforce. Focuses on pinpointing the optimal resources required to meet customer demands and enhance industry profitability. By producing 25 units songket, allocating 125 mandays (60.09%) to routine workforce tasks, 50 mandays (48.08%) to professional workforce activities, and utilizing 75 unitdays (48.08%) of equipment, the study remarkably demonstrates a substantial IDR 23,750,000 improve in overall industry profits. This stands as a practical solution to the challenges previously outlined.

Published in: 14th International Conference on Industrial Engineering and Operations Management, Dubai, UAE

Publisher: IEOM Society International
Date of Conference: February 12-14, 2024

ISBN: 979-8-3507-1734-1
ISSN/E-ISSN: 2169-8767