Ivan Gunawan, Lusia Permata Sari Hartanti, Bernadeth Theresia Novita Klau, Nor Chofifah
Coconut can produce numerous derivatives and by-products. A coconut oil industry with five production processes: expeller-pressing, refinery, extraction, hydrogenation, and pelletising can produce up to 11 products. A product mix problem often arises in the determination of the quantity of each product to be produced. As such, product mix decisions can significantly affect profit generation. This research aims to develop a mathematical model based on linear programming (LP) to maximise profits. The optimisation model developed in this study estimates that the industry can increase profits by 43.9% by applying the best product mix decision. A sensitivity analysis shows that changes in capacity affect the model. Three production flow scenarios were tested in the LP model. Scenario 1 (adding refinery 2, using it like refinery 1 plus using refinery 2 to produce refined bleached deodorised hydrogenised coconut oil super) can increase the industry’s profit by 28%. Copyright © 2025 Inderscience Enterprises Ltd.
Department of Industrial Engineering, Faculty of Engineering, Universitas Katolik Widya Mandala Surabaya, Surabaya, Indonesia; Faculty of Engineering, Universitas Katolik Widya Mandala Surabaya, Surabaya, Indonesia; Department of Mathematics, Faculty of Mathematics and Natural Sciences, Universitas Negeri Surabaya, Surabaya, Indonesia
