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PRODUCTION ANALYSIS OF KENDANG JAIPONG AND KENDANG PENCAK SILAT IN ONEJAVASENI SHOP USING INTEGER PROGRAMMING AND SENSITIVITY ANALYSIS Created by: Michael Whizo Mayto (110212172) Sakya Nabila Hapsari (1102121273) Firda Ramadhena (1102121278) TI-36-INT Industrial Engineering Faculty Telkom University Bandung 2014 PREFACE Assalamu’alaikum warahmatullahi wabarakatuh. Praise be to God for the grace and His help that has given us ease to finish this report. May prayers and peace always pour to our beloved king the Prophet Muhammad. This report is structured to meet the final task in one of the courses, that is Operational Research. The topic that we discuss in this report is a description of the case, mathematical models, sensitivity analysis, and the solutions to maximize the profit from the art shop, brand "one java art" in Bandung. In compiling this report, we encountered a variety of obstacles. Be it from outside or from the suthors themselves. But with great patience and especially the help of God finally this report can be resolved. Authors also thanked to lecturer, Mrs. Amelia Kurniawati and her assistant who have been guiding us in our understanding of Operational Research and this final task. Hopefully this report will give broader knowledge to readers. We realized that this report is still far from perfect. Therefore, we need criticism and suggestions of readers that building. Thank you. May 20 , 2014 Authors i CONTENT PREFACE ..................................................................................................................................... i CONTENT ................................................................................................................................... ii CONTENT OF TABLE ................................................................................................................... i CONTENT OF FIGURE ................................................................................................................. i CHAPTER I INTRODUCTION ....................................................................................................... 1 1.1 Background ............................................................................................................... 1 1.2 Identification of Problem .......................................................................................... 1 1.3 Formula of Problem .................................................................................................. 1 1.4 Objective ................................................................................................................... 2 1.5 Limitation of Problem .............................................................................................. 2 1.6 Benefit ....................................................................................................................... 2 CHAPTER II BASIC THEORY ........................................................................................................ 3 2.1 Linear Programming.................................................................................................. 3 2.2 Integer Programming ................................................................................................ 4 CHAPTER III CASE STUDY AND ANALYSIS .................................................................................. 5 3.1 Case Study ................................................................................................................. 5 3.2 Analysis (Using Integer Programming) ...................................................................... 6 3.2.1 Mathematic model............................................................................................ 6 CHAPTER IV COVER ................................................................................................................. 17 4.1 Conclusion ............................................................................................................... 17 4.2 Suggestion ............................................................................................................... 17 APPENDIX ................................................................................................................................ 18 REFERENCE .............................................................................................................................. 20 ii CONTENT OF TABLE Table 1. Constraint of Kendang Jaipong and Kendang Pencak Silat ........................................ 5 Table 2. Constraint of Kendang Jaipong and Kendang Pencak Silat in Software QM ............... 7 Table 3. Table of Ranging both Kendang Jaipong and Kendang Pencak Silat ........................... 7 Table 4. Table of Iteration ......................................................................................................... 8 Table 5. Table of Solution......................................................................................................... 8 Table 6. Table of Solution List ................................................................................................... 9 i CONTENT OF FIGURE Figure 1. Graph of Case Study ................................................................................................... 9 i CHAPTER I INTRODUCTION 1.1 Background There are so many companies in Bandung which grow very fast. All those companies may have different sector, but the only reason why they establish the companies is to gain revenue as much as possible. One of the sector that really promising to gain high revenue in Bandung is creative sector. OneJavaSeni is one of the company that moves in creative sector, particularly in West Java traditional instrumental. They usually produce many products, such as kendang, gamelan, angklung, suling, and many others. From those products, kendang is the most preferable product that usually ordered by the customers, especially Kendang Jaipong and Kendang Pencak Silat. Although they have accepted many orders, sometimes they still have difficulty to find the best way to gain maximum revenue. They need a better strategy in production line to keep getting maximum revenue with available capacity of material. 1.2 Identification of Problem Based on the background above, It can be identified issues related to linear programming in our case study, which are: maximize revenue by utilizing existing materials, sensitivity analysis, and graphic solutions. 1.3 Formula of Problem 1. What is material that used by OneJavaSeni shop to produce Kendang Jaipong and Kendang Pencak Silat? 2. How to gained maximize revenue of OneJavaSeni shop? 3. How to analyze the sensivity of optimal value by changing the capacity of buffalo skin? 1 1.4 Objective 1. The reader will understand utilization of material is done by OneJavaSeni shop to produce Kendang Jaipong and Kendang Pencak Silat. 1. The reader will know how to gained maximize revenue of OneJavaSeni shop. 2. The reader can understand how to analyze the sensivity by changing the capacity of buffalo skin. 1.5 Limitation of Problem We limit the constraints in order our observations are not distorted and overly broad. Limitation constraint will facilitate us in getting the data and calculate. The constraint that we take into account only the materials needed to manufacture the Kendang. We do not take into account labor costs, capital employed, wood drying time, etc. 1.6 Benefit This research is expected to be useful: 1. Those students, to further improve the understanding of linear programming in order to analyze the production process of a company. 2. For companies, can learn how to maximize revenue by leveraging existing material. 3. For faculty, as research materials or data that have been done by the student. 4. For researchers, as an encouragement to further enhance the analytical skills so as to improve the production system of a company. 2 CHAPTER II BASIC THEORY 2.1 Linear Programming Linear programming (LP) involves minimizing or maximizing an objective function subject to bounds, linear equality, and inequality constraints. Example problems include design optimization in engineering, profit maximization in manufacturing, portfolio optimization in finance, and scheduling in energy and transportation. Linear programming is the mathematical problem of finding a vector x that minimizes the function: Subject to the linear constraints: Ax ≤ b Inequality constraint Aeqx = beq Equality constraint Lb ≤ x ≤ ub Bound constraint The following algorithms are commonly used to solve linear programming problems: Interior point: Uses a primal-dual predictor-corrector algorithm and is especially useful for large-scale problems that have structure or can be defined using sparse matrices. Active-set: Minimizes the objective at each iteration over the active set (a subset of the constraints that are locally active) until it reaches a solution. Simplex: Uses a systematic procedure for generating and testing candidate vertex solutions to a linear program. The simplex algorithm is the most widely used algorithm for linear programming 3 2.2 Integer Programming An integer programming is a mathematical optimization or feasibility program in which some or all of the variables are restricted to be integers. In many settings the term refers to integer linear programming (ILP), in which the objective function and the constraints (other than the integer constraints) are linear. An integer linear program in canonical form is expressed as: Maximize cTx Subject to Ax ≤ b, X ≥ 0, And xЄZ and an ILP in standard form is expressed as Maximize cTx Subject to Ax = b, X ≥ 0, And xЄZ Where the entries of c,b are vectors and is a matrix, having integer values. Note that similar to linear programs, ILPs not in standard form can be converted to standard form by eliminating inequalities by introducing slack variables and replacing variables that are not sign-constrained with the difference of two signconstrained variable. 4 CHAPTER III CASE STUDY AND ANALYSIS 3.1 Case Study OneJavaSeni is a shop which produces West Java traditional instrumental, located on Jalan Soekarno Hatta, across Carrefour. The owner of this shop is Giri Hartono and this shop has been established since four years ago. OneJavaSeni usually produces two main products, which are Kendang Jaipong and Kendang Pencak Silat. The price of Kendang Jaipong is Rp3.000.000,00, while the price of Kendang Pencak Silat is Rp5.500.000,00. The main materials of those products are wood, bamboo, and buffalo skin. The table below will show the amount of materials, work time, and demand. Table 1. Constraint of Kendang Jaipong and Kendang Pencak Silat Kendang Kendang Jaipong Pencak Silat Wood 0.65 0.75 8 Bamboo (Wengku) 0.17 0.19 3 Buffalo Skin 1 2 4 Work Time 2 2 12 Demand of Kendang Jaipong 1 0 5 0 1 2 Demand of Kendang Pencak Silat Capacity From the table above, we need to find the maximum revenue that can be gained by OneJavaSeni. How much revenue that can be gained? 5 3.2 Analysis (Using Integer Programming) 3.2.1 Mathematic model Decision Variable X1 = Amount of Kendang Jaipong X2 = Amount of Kendang Pencak Silat Objective Function Max Z = 3000000 X1 + 5500000 X2 Constraints Wood : 0.65 X1 + 0.75X2 ≤ 8 Bamboo (Wengku) : 0.17 X1 + 0.19 X2 ≤ 3 Buffalo Skin : X1 + 2 X2 ≤ 4 Work Time : 2 X1 + 2 X2 ≤ 12 Demand X1 : X1 ≤ 5 Demand X2 : X2 ≤ 2 Non-negative : X1, X2 ≥ 0 Standard form Max Z = 3000000 X1 + 5500000 X2 + 0X3 + 0X4 + 0X5 + 0X6 + 0X7 + 0X8 Wood : 0.65 X1 + 0.75X2 + X3 = 8 Bamboo (Wengku) : 0.17 X1 + 0.19 X2 + X4 = 3 Buffalo Skin : X 1 + 2 X 2 + X5 = 4 Work Time : 2 X1 + 2 X2 + X6 = 12 Demand X1 : X1 + X7 = 5 Demand X2 : X2 + X8 = 2 Non-negative : X1, X2 ≥ 0 6 Table of Constraints Table 2. Constraint of Kendang Jaipong and Kendang Pencak Silat in Software QM Ranging Table 3. Table of Ranging both Kendang Jaipong and Kendang Pencak Silat 7 Iteration Table 4. Table of Iteration Solution Table 5. Table of Solution 8 Solution List Table 6. Table of Solution List Graph Figure 1. Graph of Case Study From the table above, we can conclude that OneJavaSeni will gain maximum revenue if the amount Kendang Jaipong are four and the amount of Kendang Pencak Silat is none. So, the maximum revenue is Rp 12.000.000,00 per month. But 9 in reality they need to produce both of products. So, we need to do sensitivity analysis by changing the capacity of buffalo skin as follows: X1 + 2X2 <= 1 X1 + 2X2 <= 2 10 X1 + 2X2 <= 3 X1 + 2X2 <= 4 11 X1 + 2X2 <= 5 X1 + 2X2 <= 6 12 X1 + 2X2 <= 7 X1 + 2X2 <= 8 13 X1 + 2X2 <= 9 X1 + 2X2 <= 10 14 X1 + 2X2 <= 11 15 Sensitivity Table of Buffalo Skin Constraint X1 X2 Z X1 + 2X2 ≤ 1 2 0 3000000 X1 + 2X2 ≤ 2 3 0 9000000 X1 + 2X2 ≤ 3 4 0 1200000 X1 + 2X2 ≤ 4 4 0 12000000 X1 + 2X2 ≤ 5 5 0 15000000 X1 + 2X2 ≤ 6 4 1 17500000 X1 + 2X2 ≤ 7 5 1 20500000 X1 + 2X2 ≤ 8 4 2 23000000 X1 + 2X2 ≤ 9 4 2 23000000 X1 + 2X2 ≤ 10 4 2 23000000 X1 + 2X2 ≤ 11 4 2 23000000 From the sensitivity table of buffalo skin, we can conclude that by changing capacity of buffalo skin, we can find the maximum revenue with producing both of the products. The maximum revenue is Rp23.000.000,00 if OneJavaSeni produces four Kendang Jaipong dan two Kendang Pencak Silat. 16 CHAPTER IV COVER 4.1 Conclusion By using integer programming, we can find out how much product that should be produced in integer amount. Besides that, we can count the maximum revenue, so the company can calculate and rearrange the better way in production system. But to find out the limitation of production to get maximum revenue, we can also use sensitivity analysis. It can be changing capacity or amount of materials. 4.2 Suggestion The company should arrange the production system by using integer programming and sensitivity analysis to maximize revenue by available capacity of materials, so production system will be more efficient. 17 APPENDIX 18 19 REFERENCE http://www.mathworks.com/discovery/linear-programming.html http://www.wikipedia.org/integer-programming.html 20