Using Goal Programming Method for Optimization of Production Planning

Manufacturing industry business is one of the industries which has significant development therefore it's important to maintain quality and the efficiency of working time in order to meet customer's demand. One way to achieve company's objectives is by optimization process production without reducing the quality of the product. Therefore, the purpose of this research is to maximize production volume for providing customer's demands, maximize sales revenue, minimize production cost and maximize machine's working hour cost. The method used in this research is Goal Programming without priority and with weighted priority and applied to LINGO software version 17. From the calculation of the two methods of Goal Programming, Goal Programming method without priority is the most optimal for production planning at PT XYZ, because it can improve the efficiency for machine's working hours and production cost, thus the sales revenue increased by 404.69%. It will affect and give a good impact on the company for business development. As a result, this research showed that the define objectives achieved optimally.