The First International Conference On Islamic Development Studies 2019, ICIDS 2019, 10 September 2019, Bandar Lampung, Indonesia

Research Article

Optimizing Strategy To Leverage Profit Of A Home Industry

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  • @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
R Panday1,*, A Huda1, A Wibowo1, W Winarso1, M F Nursal1
  • 1: Universitas Bhayangkara Jakarta Raya, Jl. Darmawangsa 1 No. 1, Pulo, Kec. Kebayoran Baru, Jakarta Selatan, Indonesia
*Contact email: Indripan@gmail.com

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.