Implementation of Linear Programming

Oct 13, 2025 by vinooalluri.com 101 views

Integration of Production and Scheduling Distribution for Fresh Palm Oil Bunches at PT. PP. London Sumatera Tbk, Sei Bagerpang Estate

Introduction

In the highly competitive global market, companies must not only compete with each other but also focus on the efficiency of their supply chain. This is particularly true for companies in the palm oil industry, where the integration of production and scheduling distribution plays a crucial role in determining their success. PT. PP. London Sumatra Tbk, one of the leading palm oil processing companies in Indonesia, is no exception. This study aims to analyze the supply chain and Crude Palm Oil (CPO) value chain in this company, with a focus on optimizing production planning and distribution scheduling.

Background of the Study

PT. PP. London Sumatra Tbk is a well-established company in the palm oil industry, producing Crude Palm Oil (CPO) and Palm Kernel Oil (PKO). The company's success is largely due to its ability to adapt to the changing market demands and to optimize its production and distribution processes. However, with the increasing competition in the global market, the company must continue to improve its efficiency and effectiveness in order to remain competitive.

Methodology

This study uses a systematic approach to analyze the supply chain and CPO value chain in PT. PP. London Sumatra Tbk. The study employs a linear programming method to optimize production planning, as well as the application of genetic algorithms on the problem of fresh fruit bunch (FFB) transportation routes to minimize mileage. The linear programming method is used to achieve optimal production, while the genetic algorithm is used to solve the problem of scheduling the distribution route.

Results

The results of this study show that the linear programming method can achieve an increase in production of 35,720 tons, with a total production cost of Rp 219,856,500,000. This significant production figure can meet the increasing market needs without sacrificing product quality. Furthermore, the genetic algorithm used in this study produces a significant mileage savings of 8.92%, thereby optimizing the time and transportation costs.

Distribution Scheduling

In the aspect of distribution scheduling, there are several important factors that need to be considered, such as truck capacity, mileage, and the number of vehicles available. All of these factors have a direct effect on the efficiency of sending FFB. To solve the problem of scheduling the distribution route, a genetic algorithm is used with the help of MATLAB software. The study shows that the distribution route for FFB on July 1, 2017 was 0-1-3-2-0, which indicated the order of shipping to various locations.

Additional Analysis and Explanation

In the context of the palm oil industry, the integration of production and scheduling distribution is very important. Accuracy in scheduling distribution not only has an impact on cost reduction, but also on increasing customer satisfaction. The effective processing of FFB can improve the quality of CPO and PKOs produced. Therefore, understanding and applying optimization techniques such as linear programming and genetic algorithms can provide significant competitive benefits.

Conclusion

In conclusion, this study demonstrates the importance of integrating production and scheduling distribution in the palm oil industry. The use of linear programming and genetic algorithms can provide significant benefits in terms of cost reduction, customer satisfaction, and product quality. The study also highlights the importance of technology in supporting operational efficiency in the plantation and oil palm processing sectors. Therefore, PT. PP. London Sumatra Tbk, as well as other companies in the palm oil industry, should continue to adapt to technological developments and pay attention to operational efficiency in order to remain competitive.

Recommendations

Based on the findings of this study, the following recommendations are made:

Implementation of Linear Programming: PT. PP. London Sumatra Tbk should implement the linear programming method to optimize production planning and achieve optimal production.
Use of Genetic Algorithm: The company should use the genetic algorithm to solve the problem of scheduling the distribution route and minimize mileage.
Investment in Technology: The company should invest in advanced software and technology to support operational efficiency in the plantation and oil palm processing sectors.
Continuous Monitoring and Evaluation: The company should continuously monitor and evaluate its production and distribution processes to ensure that they are optimized and efficient.

Limitations of the Study

This study has several limitations, including:

Limited Data: The study is based on limited data and may not be representative of the entire palm oil industry.
Methodological Limitations: The study uses a linear programming method and genetic algorithm, which may not be applicable to all companies in the palm oil industry.
Limited Scope: The study focuses on PT. PP. London Sumatra Tbk and may not be applicable to other companies in the palm oil industry.

Future Research Directions

Future research should focus on the following areas:

Application of Optimization Techniques: Further research should be conducted on the application of optimization techniques such as linear programming and genetic algorithms in the palm oil industry.
Investment in Technology: Research should be conducted on the investment in technology to support operational efficiency in the plantation and oil palm processing sectors.
Continuous Monitoring and Evaluation: Research should be conducted on the importance of continuous monitoring and evaluation of production and distribution processes in the palm oil industry.

Conclusion

Frequently Asked Questions

Q: What is the main objective of this study? A: The main objective of this study is to analyze the supply chain and Crude Palm Oil (CPO) value chain in PT. PP. London Sumatra Tbk, with a focus on optimizing production planning and distribution scheduling.

Q: What methods were used in this study? A: This study employed a linear programming method to optimize production planning, as well as the application of genetic algorithms on the problem of fresh fruit bunch (FFB) transportation routes to minimize mileage.

Q: What were the results of this study? A: The results of this study show that the linear programming method can achieve an increase in production of 35,720 tons, with a total production cost of Rp 219,856,500,000. The genetic algorithm used in this study produces a significant mileage savings of 8.92%, thereby optimizing the time and transportation costs.

Q: What is the importance of integrating production and scheduling distribution in the palm oil industry? A: The integration of production and scheduling distribution is very important in the palm oil industry. Accuracy in scheduling distribution not only has an impact on cost reduction, but also on increasing customer satisfaction. The effective processing of FFB can improve the quality of CPO and PKOs produced.

Q: What are the benefits of using linear programming and genetic algorithms in the palm oil industry? A: The use of linear programming and genetic algorithms can provide significant benefits in terms of cost reduction, customer satisfaction, and product quality. These techniques can help companies optimize their production and distribution processes, leading to increased efficiency and competitiveness.

Q: What are the limitations of this study? A: This study has several limitations, including limited data, methodological limitations, and limited scope. The study is based on data from PT. PP. London Sumatra Tbk and may not be representative of the entire palm oil industry.

Q: What are the future research directions? A: Future research should focus on the application of optimization techniques such as linear programming and genetic algorithms in the palm oil industry. Research should also be conducted on the investment in technology to support operational efficiency in the plantation and oil palm processing sectors.

Q: What are the recommendations for PT. PP. London Sumatra Tbk? A: Based on the findings of this study, the following recommendations are made:

Implementation of Linear Programming: PT. PP. London Sumatra Tbk should implement the linear programming method to optimize production planning and achieve optimal production.
Use of Genetic Algorithm: The company should use the genetic algorithm to solve the problem of scheduling the distribution route and minimize mileage.
Investment in Technology: The company should invest in advanced software and technology to support operational efficiency in the plantation and oil palm processing sectors.
Continuous Monitoring and Evaluation: The company should continuously monitor and evaluate its production and distribution processes to ensure that they are optimized and efficient.

Q: What are the implications of this study for the palm oil industry? A: This study has significant implications for the palm oil industry. The findings of this study highlight the importance of integrating production and scheduling distribution in the palm oil industry. The use of linear programming and genetic algorithms can provide significant benefits in terms of cost reduction, customer satisfaction, and product quality. Companies in the palm oil industry should consider implementing these techniques to optimize their production and distribution processes.