Production Planning Optimization Using Goal Programming Method

Topics: Optimization, Operations research, Cost accounting / Pages: 6 (1488 words) / Published: Nov 15th, 2013
Project Report #1 (Advanced Operation Research)

Title : Production Planning Optimization Using Goal Programming Method
I. Introduction
Today many companies that produce herbs because in the future opportunities for the herbal industry is still wide open and the public mind back to nature and go green, so consumer more like the various products especially natural herbal medicine. Therefore, in order to survive in existing market competition, PT. NM are required to meet the total request (demand) from consumer. company seeks to maximize the volume of production in order to meet the total demand of consumers by creating an optimal production planning. In planning of production companies not only pay attention to consumer demand but the company also need to pay attention to three elements, namely consumer products, and manufacturing processes.
During this PT. NM only oriented towards the fulfillment of the number of requests which means companies only consider elements of the product in the planning production. This resulted in less efficient when planning of production. In order to achieve the production target, companies usually doing overtime hours. However, this makes the overtime labor losses because in PT. NM does not provide additional cost for overtime, labor loss of work time and effort to the company. Therefore the company needs to regular working hours to maximize production and overtime can be minimized.
The number of defective products from the production of relatively high, so the company must expend cost for additional raw materials and additional labor costs, and that resulted company having to spend the cost for quality. Number of products defective largely because the existing workforce has an average low level of human resources and machine/facilities used in the production process are needed to be updated because the machines are already old and decrease in productivity. PT. NM currently produces about 250

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