Optimization of The Skin Crackers Business in Tambang District, Kampar Regency (Case Study: UD Kerupuk Kulit Jon Kenedi)

Abstract

Purpose of Study: This study aims to analyze the optimal production combination of beef skin crackers and buffalo skin crackers and to examine the allocation of resources owned by entrepreneurs producing beef and buffalo skin crackers in order to achieve optimal production conditions.

Methodology: This research uses a case study approach. The sampling technique used was purposive sampling, with the criteria being that the business employed the most workers and had been established the longest, since 2011, in Tambang District, Kampar Regency. This research was conducted at UD Kerupuk Kulit Jon Kenedi Tambang District, Kampar Regency. Data were analyzed using Linear Programming with the simplex method to determine the optimal production combination and resource allocation.

Main Findings: The results show that the optimal production strategy for maximum profit is to produce 2,122 kilograms of cowhide crackers per month and not produce buffalo hide crackers. This is due to the relatively high price of buffalo hide as a raw material and its limited availability. This condition occurs because the price of buffalo skin as a raw material is relatively higher and its availability is limited. Therefore, entrepreneurs are advised to focus on increasing cowhide cracker production by increasing capital through loans, investments, or other financing sources to address raw material limitations and increase production capacity.

Novelty/Originality of This Study: Remaining resources, such as supporting materials and labor hours, should be optimally utilized through product diversification, for example, by producing raw (semi finished) crackers. This effort is expected to improve resource efficiency, reduce production costs, and expand market share.