PROFIT OPTIMIZATION AND RAW MATERIAL COST MINIMIZATION IN LAUNDRY BUSINESS USING BRANCH AND BOUND AND PENALTY METHODS
DOI:
https://doi.org/10.35261/barometer.v11i1.13177Abstract
Increasing business competition requires companies in the industrial, commercial, and service sectors to optimize their performance in order to remain competitive. One rapidly growing service sector is the laundry industry, which has become an essential need for urban communities due to high daily activity levels. Laundry Bamin, as a micro-scale enterprise, is required to implement optimal production planning based on efficient use of capital and raw materials to achieve maximum profit. However, the business faces challenges related to manual profit calculations and inefficient raw material usage. To address these issues, this study applies the Branch and Bound method for profit optimization and the Penalty method to minimize raw material costs. Data were collected through observation, interviews, and literature review. The results indicate that the Branch and Bound method is able to maximize profit up to Rp4,200,000 by prioritizing blanket washing services, while the Penaltymethod produces a minimum raw material cost of Rp728,000 per week. Therefore, both methods are proven to be effective in improving profitability and operational efficiency, as well as supporting the sustainability of micro-scale laundry service enterprises.
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References
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