Track: Business Management

Abstract

This study aims to optimize profit and satisfy the customer by meeting the schedule of a company that having fierce competition of selling furniture in to global market. In operating their production, the company has been faced by many obstacles, first, they need to decide which combination of products they should have, whether they must allocate their resources to produce common products, custom products, or combination of them. Common products only have 30% profit margin but need few numbers of human resources and less time to produce. Meanwhile, custom products have a 65% profit margin, but they need many more skillful human resources, trial and error, and longer time to produce. Using past data, we model the problem in to decision analysis and then continue with linear programming and sensitivity analysis. The results show that the company will gain 25% increase in net profit and 100% meeting the production and delivery schedule.