Designing production planning optimization model using linear programming method at a coal supply company

Abstract

A coal supply company in Jakarta that acts as a terminal and a coal processing plant has no production planning method yet, while the demand faced is very volatile. This resulted in the company's profit to be not optimal. Therefore, it is needed a mathematical model that can be used to make the right production planning so that the company can maximize the company's profit. Mathematical model is built with Linear Programming method. The objects to be research are fine, nut, and rom coal. The result of this research is obtaining optimum quantity of production from three product types and profit obtained each period in the next 12 periods (May 2018-April 2019).