Authors : Finia Wirma, Abdullah Shahab.

Volume/Issue :-
 Volume 3 Issue 7

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Growth of wheat flour industry was increasing as people in upper middle class has shifted their consumption habits from consumption rice based food to flour based food. Stability of wheat flour quality, competitive price, and product availability in market was the challenges that food industry faced. PT Y was one of national company that produce wheat flour who held 51% market share in Indonesia. The increase of market share not only raising company’s revenues but also gave another challenge, which is raising company’s production cost which forced the company to optimize the use of resources continuously, so it can produce at lowest cost. This study aim to develop mathematical model using Linear Programming to optimize wheat flour production capable of lowering the production cost. The model using Linear Programming model was shown able to produce optimal solution that meets all the constraints. Completion model was able to determine the assignment of machines and selection of raw materials in accordance with the quantity and quality expected. The results show with optimization methods, PT Y would have potential in decreasing wheat flour production cost for 20.9% compare to company recent methods.
Keywords:- Optimization, production planning, wheat flour production, Linear Programming.