Research Article
Optimizing Strategy To Leverage Profit Of A Home Industry
@INPROCEEDINGS{10.4108/eai.10-9-2019.2289327, author={R Panday and A Huda and A Wibowo and W Winarso and M F Nursal}, title={Optimizing Strategy To Leverage Profit Of A Home Industry}, proceedings={The First International Conference On Islamic Development Studies 2019, ICIDS 2019, 10 September 2019, Bandar Lampung, Indonesia}, publisher={EAI}, proceedings_a={ICIDS}, year={2019}, month={11}, keywords={profit optimization linear programming sensitivity analysis micro small and medium enterprises garment industry}, doi={10.4108/eai.10-9-2019.2289327} }- R Panday
A Huda
A Wibowo
W Winarso
M F Nursal
Year: 2019
Optimizing Strategy To Leverage Profit Of A Home Industry
ICIDS
EAI
DOI: 10.4108/eai.10-9-2019.2289327
Abstract
Micro small and medium enterprise (SME) is a business type with a small to medium amount of capital and fast cash turnover because most of the businesses are generally retailing. As a retail, the selling price and quality of their products are competing with each other. Therefore, a proper strategy is needed in order to leverage their profits. One of the strategies is through optimizing the production process. This case study was conducted in a garment industry in Indonesia producing a variety of clothes. Through a linear programming and sensitivity analysis, the most optimum process was found. By applying the suggested process, the company is projected to be able to increase its profits from 24% to 33%. This study significantly contributes to the micro SMEs, especially the garment industry in planning proper strategies in order to increase its profits.