Multi-Objective Optimization for Uncertainty Management in Circular Economy: An Empirical Approach to the Yellow Tofu Industry in KediriAna Komari1*, Lolyka Dewi Indrasari2*Email corresponding author: ana@unik-kediri.ac.id1.2Department of Industrial Engineering, Faculty of Engineering, Kadiri UniversityArticle history: Received: 1 April 2026 | Revised: 9 May 2026 | Accepted: 11 May 2026Abstract. The small and medium-scale tofu industry faces production efficiency and waste management issues that impact economic and environmental performance. This study aims to optimize yellow tofu production by maximizing profits, minimizing raw material waste, and optimizing waste utilization into economically valuable products. The Multi-Objective Linear Programming (MOLP) approach is used to model the production system by considering the limitations of raw materials, production capacity, and working hours. Fishbone Diagram analysis is applied to identify factors causing waste generation based on human, machine, material, method, environment, and management aspects. The optimization results show that the optimal production of yellow tofu reaches 1,194.03 kg/day with an objective value of Rp 7,164,179, where the constraints of working hours and the use of turmeric are in binding conditions. The integration of waste utilization allows tofu dregs to be fully utilized as a by-product of 5.01 kg/day, so that net waste can be reduced to zero. The feasibility evaluation of a circular economy using NPV, IRR, B/C, and Payback Period shows that waste utilization is financially feasible. This research contributes to the formulation of efficient, sustainable, and environmentally friendly tofu production strategies for small and medium industries. Keywords - Multi-Objective Linear Programming; Production Optimization; Waste Management; Tofu Industry; Circular Economy; Fishbone DiagramIntroductionThe tofu industry, like other sectors, generates significant amounts of waste (such as tofu dregs and soybean husks) that are often underutilized, leading to environmental burdens and increased operational costs ADDIN CSL_CITATION {"citationItems":[{"id":"ITEM-1","itemData":{"DOI":"10.31603/ce.5825","ISSN":"2614-4964","abstract":"Utilization of wire waste is feasible to be produced as a plate basket product. The partner who has implemented this innovation is UKM Putu Alwy Jaya. The community service team conducted socialization with the topic \"green logistics\". This topic is in accordance with the conditions that are being experienced by partners. The purpose of this activity is to increase the role of green logistics in products made from waste wire with selling value. The implementation method includes lectures, discussions, questions and answers and evaluations. Based on the results of the aspirations of the participants involved, it was stated that it was important to recapitulate the inventory of wire waste material every time an order was made to the supplier. Then, calculate the economic order quantity as a point of ordering in the future to minimize material delays. Scheduling optimization is related to the production period. Improving the function of work tools to speed up the production process of plate baskets is the main step. Straightening tools, cutting tools and packing techniques are closely related to green logistics. 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One way of managing with ecobrix techniques to make seat products. Thus, it can provide a selling point. More than that, marketing the product requires the right strategy. This study aims to find out the selling price of ecobriks-based seat products and marketing models using SWOT – QSPM integration. The research method made observations on 60 ml plastic bottle waste and snack wrap to be designed. Chair design modeling using SkecthUp 2014 software. Processing into ecobrix with adequate equipment and the main material is a 600 ml plastic bottle and snack wrap. Grouping cost types, calculating selling prices and choosing strategies based on the highest to lowest attractiveness values. The results of this study, stated that the seat model has a selling price of Rp. 131.250,- per seat unit made of ecobrix. The marketing model is sorted with the greatest attractiveness value, firstly that adequate equipment will facilitate the management process worth 10.43; secondly, competent human resources do not become a barrier in waste management even though the population increases benrilai 6.76; the third is the garbage sorting activity involving garbage collectors to make it easier for craftsmen to make ecobrix chairs worth 4.47 Pengendalian sampah yang tidak dapat teratasi akan menimbulkan dampak bagi lingkungan, terutama sampah plastik. Salah satu cara mengelola dengan teknik ekobriks untuk dibuat produk kursi. Dengan demikian, dapat memberikan nilai jual. Lebih dari itu, pemasaran produk tersebut memerlukan strategi yang tepat. Penelitian ini bertujuan untuk mengetahui harga jual dari produk kursi berbahan dasar ekobriks dan model pemasaran menggunakan integrasi SWOT – QSPM. Metode penelitian melakukan observasi terhadap sampah botol plastik 60 ml dan bungkus snack untuk dirancang. Pemodelan rancangan kursi menggunakan software SkecthUp 2014. Pengolahan menjadi ekobriks dengan peralatan yang memadai dan bahan utama adalah botol plastik 600 ml dan bungkus snack. Melakukan pengelompokkan jenis biaya, menghitung harga jual dan memilih strategi berdasarkan nilai daya tarik tertinggi sampai terendah. Hasil penelitian ini, menyatakan model kursi memiliki harga jual sebesar Rp. 131.250,- per unit kursi berbahan ekobriks. Model pemasaran diurutkan dengan nilai daya tarik terbesar, pertama yaitu peralatan memadai akan mempermudah proses pengelolaan bernilai 10,43 ; kedua yaitu su…","author":[{"dropping-particle":"","family":"Komari","given":"Ana","non-dropping-particle":"","parse-names":false,"suffix":""}],"container-title":"JATI UNIK : Jurnal Ilmiah Teknik dan Manajemen Industri","id":"ITEM-3","issue":"1","issued":{"date-parts":[["2021"]]},"page":"28-40","title":"Integrasi Cost Plus Pricing, SWOT dan QSPM dalam Pemanfaatan Sampah Plastik","type":"article-journal","volume":"5"},"uris":["http://www.mendeley.com/documents/?uuid=1b64c7f2-7ba4-42f2-8e39-e50049bac19a"]},{"id":"ITEM-4","itemData":{"author":[{"dropping-particle":"","family":"Indrasari","given":"Lolyka Dewi","non-dropping-particle":"","parse-names":false,"suffix":""},{"dropping-particle":"","family":"Widodo","given":"Silvi Rushanti","non-dropping-particle":"","parse-names":false,"suffix":""},{"dropping-particle":"","family":"Tripariyanto","given":"Afiff Yudha","non-dropping-particle":"","parse-names":false,"suffix":""},{"dropping-particle":"","family":"Komari","given":"Ana","non-dropping-particle":"","parse-names":false,"suffix":""}],"container-title":"SOCIETY : Jurnal Pengabdian dan Pemberdayaan Masyarakat","id":"ITEM-4","issue":"1","issued":{"date-parts":[["2020"]]},"page":"1-6","title":"Pemberdayaan Masyarakat melalui Pemanfaatan Limbah Besi dalam pembuatan Produk “ CIRCLE HANGER ” sebagai Peningkatan Kesejahteraan Masyarakat dan Industri Kreatif yang Berdaya Saing","type":"article-journal","volume":"1"},"uris":["http://www.mendeley.com/documents/?uuid=51ac5dfc-a133-4613-aff2-a365d5dd6ee6"]},{"id":"ITEM-5","itemData":{"DOI":"10.30737/jurmatis.v2i2.948","abstract":"Sugar Industry PG. Pesantren Baru in treating wastewater produced by production activities using the Waste Water Treatment Plant. The purpose of this study is to determine the effectiveness of wastewater treatment plants. The method used in this research is descriptive observational. This research uses primary data obtained from interviews and temporary observations of secondary data from the processing section in the form of inlet and outlet laboratory test results. The parameters of the results of laboratory test analysis. The results of this study were an average pH concentration of 7. The order of decrease in the concentration of these parameters included, 28.15%; 24.43%; 57.90%; 02.58%; 12.35%. But the most effective way to reduce concentration is on the TSS parameter of 57.90%. The results of the evaluation with Wastewater Quality Standards (BML) indicate that all the tested parameters derived from liquid waste are in accordance with those stipulated by the East Java Governor's Regulation. In addition, when compared with Minister of Environment Regulation No. 5 of 2014 concerning Wastewater Quality Standards, the quality of treated wastewater is also in accordance with what has been stipulated in the regulations.Industri Gula PG. Pesantren Baru dalam mengolah limbah cair hasil kegiatan produksi dengan menggunalan Instalasi Pengolahan Air Limbah. Tujuan dari penelitian ini adalah untuk mengetahui efektivitas instalasi pengolahan air limbah. Metode yang digunakan dalam penelitian ini adalah deskriptif observasional.Penelitian ini menggunakan data primer diperoleh dari wawancara dan observasi sementara data sekunder dari bagian pengolahan yang berupa hasil uji laboratorium inlet dan outlet. Parameter hasil analisis uji laboratorium. Hasil penelitian ini adalah konsentrasi pH rata-rata 7. Pengurutan yang dapat diteliti dengan hasil sebagai berikut : 28,15%; 24,43%; 57,90%; 02,58%; 12,35%. Namun yang paling efektif dalam menurunkan konsentrasi adalah pada parameter TSS sebesar 57,90%.Penelitian  yang sudah dilakukan oleh aturan yang ditetapkan Gubernur Jawa Timurberkaitan dengan Peraturan Menteri Lingkungan Hidup yang bernomor 5 pada tahun 2014 berkaitan dengan Baku Mutu Air Limbah sudah sesuai dengan aturan tersebut.","author":[{"dropping-particle":"","family":"Prasetyo","given":"Benny Edo","non-dropping-particle":"","parse-names":false,"suffix":""},{"dropping-particle":"","family":"Komari","given":"Ana","non-dropping-particle":"","parse-names":false,"suffix":""},{"dropping-particle":"","family":"Indrasari","given":"Lolyka Dewi","non-dropping-particle":"","parse-names":false,"suffix":""}],"container-title":"JURMATIS : Jurnal Ilmiah Mahasiswa Teknik Industri","id":"ITEM-5","issue":"2","issued":{"date-parts":[["2020"]]},"page":"64","title":"Efektivitas Instalasi Pengolahan Air Limbah Industri Gula PG. Pesantren Baru di Kediri Jawa Timur","type":"article-journal","volume":"2"},"uris":["http://www.mendeley.com/documents/?uuid=7e1d9c8a-7686-45c1-a9ce-90aa8d340314"]}],"mendeley":{"formattedCitation":"[1], [2], [3], [4], [5]","plainTextFormattedCitation":"[1], [2], [3], [4], [5]"},"properties":{"noteIndex":0},"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"}[1], [2], [3], [4], [5]. This condition highlights the need for a circular economy-based waste management strategy to improve resource efficiency while reducing production costs.Uncertainty in circular supply chains complicates sustainable production planning and operational efficiency across recycling industries. Industry 4.0 technologies improve waste management visibility, coordination, automation, and overall circular economy operational effectiveness significantly. Technology-based waste management implementation faces investment, infrastructure, regulatory, and operational uncertainties affecting industrial sustainability performance. Multi-objective optimization supports strategic decision-making by balancing economic, environmental, and social sustainability objectives simultaneously effectively. Circular economy implementation in construction industries encounters material quality, regulation, and alternative product acceptance limitations challenges. GTT Kediri yellow tofu industries experience inefficient soybean utilization, excessive okara waste, and uncontrolled supporting material consumption. Production planning decisions remain intuitive because quantitative optimization methods and structured production recording systems remain underutilized. Linear Programming optimization models can maximize tofu production profitability while minimizing material waste and operational inefficiencies.ADDIN CSL_CITATION {"citationItems":[{"id":"ITEM-1","itemData":{"DOI":"https://doi.org/10.1016/j.cor.2023.106487","ISSN":"0305-0548","abstract":"We consider facility location problems with a new form of equity criterion. Demand points have preference order on the sites where the plants can be located. The goal is to find the location of the facilities minimizing the envy felt by the demand points with respect to the rest of the demand points allocated to the same plant. After defining this new envy criterion and the general framework based on it, we provide formulations that model this approach in both the discrete and the continuous framework. The problems are illustrated with examples and the computational tests reported show the potential and limits of each formulation on several types of instances. 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Most empirical works in MSMEs and manufacturing contexts optimize production quantity and cost efficiency but treat systems as mono-product or simplified multi-product models without explicitly incorporating by-products as decision variables, thereby ignoring potential additional revenue streams. Furthermore, although resource constraints (e.g., raw materials, labor, and capacity) are commonly included, they are generally modeled in a rigid and linear manner without capturing operational inefficiencies such as idle time, process gaps, or energy inefficiency, which are critical in traditional production systems. Advanced studies introducing uncertainty (e.g., interval or bilevel programming) remain largely theoretical and computationally complex, lacking direct applicability to small-scale industries. Critically, none of the prior studies integrate waste minimization within the objective function using penalty-based approaches, despite increasing emphasis on circular economy practices. 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Additionally, it uniquely links optimization results with financial feasibility analysis (NPV, IRR, B/C, Payback Period), ensuring that the model is not only mathematically optimal but also economically viable. This holistic framework advances linear programming applications toward a practical circular economy-based decision model for traditional industries.Therefore, this research is crucial for developing a linear programming-based yellow tofu production planning and optimization model that is applicable and easy to implement in the Kediri GTT tofu industry. 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The results of this study showed that the method of DDMRP could decrease the average amount of the supply of Copper wire 0, 14mm per month from 2779 kg to 1499 kg. ","author":[{"dropping-particle":"","family":"Hasbullah","given":"Hasbullah","non-dropping-particle":"","parse-names":false,"suffix":""},{"dropping-particle":"","family":"Santoso","given":"Yadi","non-dropping-particle":"","parse-names":false,"suffix":""}],"container-title":"Jurnal PASTI","id":"ITEM-1","issue":"3","issued":{"date-parts":[["2021"]]},"page":"230","title":"Overstock Improvement by Combining Forecasting, EOQ, and ROP","type":"article-journal","volume":"14"},"uris":["http://www.mendeley.com/documents/?uuid=f5bd679a-398d-4b6e-9fb6-ce988a429340"]},{"id":"ITEM-2","itemData":{"ISSN":"2597-7946","abstract":"Manajemen persediaan menjadikan tolak ukur perusahaan dalam mencapai efektivitas kegiatan persediaan bahan baku. Sehingga, pengendalian persediaan berperan penting. Salah satu perusahaan memerlukan capaian efektivitas dalam melakukan persediaan laptop untuk kebutuhan penjualan. Perusahaan tersebut adalah PT. Gading Murni, yang menyediakan laptop untuk dijual kembali yang didapatkan dari supplier. Tujuan peneltian ini untuk mengetahui kapasitas gudang PT. Gading Murni dalam melakukan penyimpanan persediaan laptop dapat menggunakan metode Economic Order Quantity. Penelitian ini menggunakan tahapan observasi untuk mengambil data pembelian laptop dari supplier tahun 2020. Tahapan yang dilakukan adalah meramalkan permintaan periode Januari 2021 – Desember 2021, menghitung unit pembelian dari supplier secara ekonomis, frekuensi pemesanan, pemesanan ulang ketika unit mencapai target penjualan, merencanakan kapasitas unit pada gudang.","author":[{"dropping-particle":"","family":"Bagus Permadi","given":"Dimas","non-dropping-particle":"","parse-names":false,"suffix":""},{"dropping-particle":"","family":"Dewi Indrasari","given":"Lolyka","non-dropping-particle":"","parse-names":false,"suffix":""},{"dropping-particle":"","family":"Yudha Tripariyanto","given":"Afiff","non-dropping-particle":"","parse-names":false,"suffix":""}],"container-title":"Jurnal Ilmiah Teknik dan Manajemen Industri Universitas Kadiri","id":"ITEM-2","issue":"Oktober","issued":{"date-parts":[["2021"]]},"page":"67-79","title":"Analisis Efektifitas Stok Barang Pada PT. 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However, the increasing concern on environmental issues stresses the need to treat inventory management decisions as a whole, by integrating economic and environmental objectives. Recent studies have underlined the need to incorporate additional criteria in traditional inventory models in order to design \"responsible inventory systems\". This paper explores the integration of factors affecting the environmental impact within the traditional EOQ model and proposes a \"Sustainable EOQ Model\". All sustainability factors linked to the material lot size are analyzed from the beginning of the purchasing order to the end of its life inside the buyer plant. Thus, the environmental impact of transportation and inventory is incorporated in the model and investigated by an economic point of view. In particular internal and external transportation costs, vendor and supplier location and the different freight vehicle utilization ratio are considered in order to provide an easy-to-use methodology. The optimization approach is applied to representative data from industrial problems to assess the impact of sustainability considerations on purchasing decisions if compared with the traditional approaches. 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Pengumpulan dan menggunakan wawancara dan dokumentasi. Analisis data yang digunakan dalam penelitian ini adalah Economy Order Quantity.<br />Penelitian ini bertujuan untuk menentukkan pengendalian persediaan bahan baku dengan menggunakan metode Economy Order Quantity di CV. Alfa Nafis. Data permintaan baja ringan pada tahun 2016 sebesar 93 unit. Dimana biaya persediaan terdiri dari biaya pemesanan meliputi biaya pengangkutan dan bongkar muat, biaya adminitrasi, biaya telepon, sedangkan biaya penyimpanan terdiri biaya listrik gudang dan biaya pajak. Untuk biaya pemesanan setiap kali pesan sebesar Rp 183.333,00. Perhitungan pada EOQ dapat menyimpulkan bahwa pembelian bahan baku baja ringan yang ekonomis adalah 8.124 m^2 dengan frekuensi 4 kali pemesanan dalam satu minggu. Maka sebaiknya CV Alfa Nafis sebaiknya menerapka metode Economy Order Quantity didalam menentukan kuantitas pembelian bahan baku pembantu secara optimal sehingga dapat meminimalkan total biaya yang akan dikeluarkan oleh perusahaan setiap tahunnya. <br />Kata Kunci: Economy Order Quantity, Biaya Persediaan, Biaya Pemesanan.</p><p><strong>Forecasting Analysis and Raw Material Supplies Using EOQ Method (Economy Order Quantity) in CV. Alfa Nafis</strong></p><p>ABSTRACT<br />Increasingly intense competition between companies encourages each company to establish control of raw material inventory in an appropriate manner to achieve the desired corporate objectives, one of them by knowing the supply of raw materials and using the method of Economy Order Quantity in order to maximize performance in each part. Collecting and using interviews and documentation. Data analysis used in this research is Economy Order Quantity. This study aims to establish raw material inventory control using Economy Order Quantity method in CV. Alfa Nafis. Data of light steel demand in 2016 amounted to 93 units. Where the cost of inventory consists of the cost of ordering include the cost of transportation and loading and unloading, administrative costs, telephone costs, while the storage costs consist of warehouse electricity costs and tax costs. F…","author":[{"dropping-particle":"","family":"Sofiyanurriyanti","given":"Sofiyanurriyanti","non-dropping-particle":"","parse-names":false,"suffix":""}],"container-title":"Rekayasa","id":"ITEM-2","issue":"2","issued":{"date-parts":[["2017"]]},"page":"65","title":"Analisa Persediaan Bahan Baku Mengunakan Metode EOQ (Economy Order Quantity) di CV. Alfa Nafis","type":"article-journal","volume":"10"},"uris":["http://www.mendeley.com/documents/?uuid=65e657b4-7e7a-4b87-85a7-e038f6bbdb86"]}],"mendeley":{"formattedCitation":"[30], [31]","plainTextFormattedCitation":"[30], [31]","previouslyFormattedCitation":"[30], [31]"},"properties":{"noteIndex":0},"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"}[30], [31]. The GTT yellow tofu industry in Kediri faces uncertainties in soybean supply, inefficient production hours, and suboptimal okara waste management. Raw material ordering without systematic calculations frequently causes overstock, understock, increased operational costs, reduced production capacity, and inefficient use of time and energy. Production activities operate for 8–12 hours daily under limitations of labor availability, boiling capacity, and energy consumption. Okara waste, representing approximately 20–30% of total soybean input, still has low economic value despite its potential for value-added circular economy products. Therefore, this study applies a Multi-Objective Linear Programming (MOLP) approach to maximize production profits, minimize raw material waste, optimize waste utilization, and evaluate economic feasibility through NPV, IRR, B/C Ratio, and Payback Period analyses to support an efficient, sustainable, and data-driven production system. MethodsThis study applies the Multi-Objective Linear Programming (MOLP) approach as a quantitative method to optimize the production system at GTT Kediri Yellow Tofu, an MSME with high daily production intensity.Research instrumentswith production data consisting of (1) the amount of yellow tofu produced per day, (2) the duration of production in one working day, and (3) the oven capacity per batch and baking time, which represent the capacity constraints and process efficiency in the production system. Raw material data includes (1) the type and quantity of raw materials used, (2) the price of each raw material, and (3) the frequency of raw material purchases per week, which are modeled as the main input variables and the raw material cost structure in the economic objective function. Operational cost data includes (1) daily labor wages, (2) the cost of wood as a source of production energy, and (3) distribution and marketing costs, which represent variable cost components that directly affect total costs and profit levels. Production waste data consists of (1) the type and volume of waste generated, including product skins, dough scraps, and unused raw materials, and (2) the potential for utilizing waste as a by-product, which is modeled for the purpose of minimizing waste and increasing added value within a circular economy framework. Furthermore, market demand data in the form of daily demand volume is entered as a market constraint to ensure that the resulting optimization solution is aligned with actual demand conditions (Table 2).Table SEQ Table \* ARABIC 2. Operational VariableNoMain VariablesSub VariablesOperational IndicatorsData sourceData TypesScale / Unit1ProductionProduction OutputAmount of yellow tofu production per dayObservation, production recordsPrimaryUnits/dayProduction TimeProduction duration in one working dayDirect observationPrimaryHours/daysProcess CapacityOven capacity per batchInterviews, technical documentsPrimaryUnit/batchProcess EfficiencyRoasting time per batchObservationPrimaryMinutes/batch2Raw materialType of MaterialTypes of main and supporting raw materialsInterview, purchasing documentsPrimary & SecondaryNominalInput QuantityAmount of raw materials usedProduction notesPrimaryKg/dayInput PricePrice of each raw materialPurchase ordersSecondaryRp/kgPurchasing PatternsFrequency of purchasing raw materials per weekPurchase archiveSecondaryTimes/week3Operating costsLabor costsWorker's wages per dayInterviews, internal documentsPrimary & SecondaryRp/dayEnergy CostsCost of firewood for productionPurchase notesSecondaryRp/dayDistribution CostsDistribution and marketing costsFinancial archivesSecondaryRp/day4Production WasteTypes of WasteProduct skin, dough scraps, unused materialsObservationPrimaryNominalWaste VolumeAmount of waste producedDirect weighingPrimaryKg/dayWaste UtilizationPotential of waste as a by-productInterviews, literaturePrimary & SecondaryDescriptive5Market DemandDaily RequestMarket demand volume per daySales recordsSecondaryUnits/dayThe data analysis technique in this study uses the Multi Objective Linear Programming (MOLP) approach to determine the optimal strategy in managing raw materials, production, and waste in the yellow tofu production process. Decision variable:x1= quantity of yellow tofu production (kg/day)x2= quantity of walik tofu production (kg/day)x3= quantity of tofu dregs sold (kg/day)x4= quantity of soybean skin sold (kg/day)x5= tofu dregs waste (kg/day)x6= soybean skin waste (kg/day)Objective Function:Zmax=60000x1​+1200x2​+6000x3+2500x4​-1200x5-500x6​Where:6000x1= quantity of yellow tofu production (kg/day)1200x2= quantity of walik tofu production (kg/day)6000x3= quantity of tofu dregs sold (kg/day)2500x4= quantity of soybean skin sold (kg/day)-1200x5= tofu dregs waste (kg/day)-500x6= soybean skin waste (kg/day)Constraints:Soybean capacity (Daily soybean availability is limited to 50 kg) = 0.0417x1​≤50Firewood (Daily firewood availability is limited to 10 kg) = 0.0083x1​≤10Turmenic usage (Daily turmeric availability is limited to 0.15 kg) = 0.000125x1​≤0.15Working hours (Total production time cannot exceed 8 hours/day) = 0.0067x1​+0.002x2≤8Oven capacity (Production capacity is limited to 1,200 kg/day) = x1​+x2≤1200Walik tofu (Walik tofu production depends proportionally on yellow tofu production) = x2- 0.0083x1≤0Tofu dregs (Tofu dregs output consists of sold dregs and waste dregs) = 0.0042x1- x3​+x5≤0Soybean skin balanca (Soybean skin output consists of sold soybean skin and waste soybean skin) = 0.0025x1- x4​+x6≤0Non-negativity constraintsx1​,x2​,x3,x4​,x5,x6≥0To strengthen the analysis, the Fishbone Diagram approach is used to identify the factors causing waste generation from human, machine, material, method, environmental, and management aspects. Furthermore, the effectiveness of circular economy implementation and the feasibility of production decisions are evaluated through financial analysis that includes Net Present Value (NPV), Internal Rate of Return (IRR), Benefit Cost Ratio (B/C), and Payback PeriodResults and DiscussionResultsExisting conditions vs simulationThe findings indicate that the GTT yellow tofu industry’s operational limitations are primarily caused by inefficient resource utilization, unproductive working time, and high distribution and marketing costs rather than market demand constraints. Although production capacity remained constant at 1,200 kg/day, operational optimization through improved workflow management, efficient firewood substitution, and direct distribution strategies significantly reduced total production costs from IDR 2,242,700 to IDR 907,700 per day. These results demonstrate that cost efficiency and resource optimization can substantially improve profitability without increasing production volume, while supporting more sustainable and circular production practices.Table SEQ Table \* ARABIC 3. Existing vs. Optimization with SimulationExistingOptimizationExistingOptimizationParameterMarkMarkParameterAmountPriceAmountPriceProductionMaterialYellow tofu production (kg)12001200Soybeans (kg)50110005011000Selling price (/kg)6000060000Wood (kg)185000105000Working hours (hours/day)7.58Turmeric (kg)0.15180000.1518000Oven capacity/batch (kg)99OperationalBy-productsWages of 5 Employees (Rp)100000250000Walik Tofu (kg)101200101200Distribution (Rp)100000050000Tofu dregs (kg)5600056000Marketing (Rp)5000005000Soybean skin (kg)3250032500Total Production CostTotal Production Cost2242700907700Table SEQ Table \* ARABIC 4. Constraint FunctionNoTypes of ConstraintsResourceMathematical Model1Soybean Constraints50 kg0.0417 x1 <= 502Firewood Constraints10 kg0.0083 x1 <= 103Turmeric Constraints0.15 kg0.000125 x1 <= 0.154Working Hours Constraints8 hours0.0067 x1 + 0.002 x2 <= 85Oven Capacity Constraints1200 kgx1 + x2 <= 12006By-Product Relationship (Tahu Walik)Proportionalx2 - 0.0083 x1 <= 07By-Product Relationship (Tofu Dregs)Proportionalx3 - 0.0042 x1 <= 08By-Product Relationship (Soybean Husk)Proportionalx4 - 0.0025 x1 <= 09Non-Negative x1x1 >= 010Non-Negative x2x2 >= 011Non-Negative x3x3 >= 012Non-Negative x4x4 >= 0Optimal production performance by considering several decision variables simultaneously, namely the production of yellow tofu (x1), walik tofu (x2), tofu dregs (x3), and soybean skin (x4). The objective function was successfully maximized to achieve a value of Z = 7,164,179, which reflects the total contribution of the main product and by-products to daily profit. Constraint analysis shows that the daily production capacity of 50 kg is almost fully utilized (LHS = 49.79) with a remaining slack of 0.21, indicating efficient use of raw materials. The firewood inventory capacity of 10 kg is also almost optimal (LHS = 9.91; slack 0.09), while the use of turmeric reaches a maximum limit of 0.15 kg without any remainder (slack = 0), indicating perfect utilization. The 8-hour working day is fully utilized (LHS = 8; slack = 0), so there is no additional room to increase production further. Highly efficient resource allocation, where all materials and working time are optimally utilized, while daily profits reach their maximum point based on multi-product combinations, demonstrates the ability of the production strategy to effectively balance primary and secondary outputs.Table SEQ Table \* ARABIC 5. Multi Objective Linear Programming ResultsMaximizeProductsignRHSLHSSlack/ SurplusYellow TofuWalik TofuTofu DregsSoybean Huskx1x2x3x460001200600025007164179Production Capacity (kg)0.0417<5049.790.21Firewood Supply Capacity (kg)0.0083<109.910.09Turmeric Usage Capacity (kg)0.00013<0.150.150.00Working Hours (hours/day)0.00670.002<88.000.00Variables1194.03Objective7164179In the development of the model by including waste minimization as an additional objective, the variables of tofu dregs (x₅) and soybean skin (x₆) waste were introduced with penalty coefficients of Rp 1,200/kg and Rp 500/kg, respectively, in the objective function. The optimization results show that with a yellow tofu production of 1,194.03 kg, dregs waste was generated amounting to 0.0042 × 1,194.03 = 5.01 kg. This waste was completely diverted into tofu dregs by-product (x₃ = 5.01 kg) so that the value of dregs waste x₅ = 0. The same thing happened to soybean skin waste, where even though theoretically it was produced around 3.00 kg, the model succeeded in suppressing the waste variable x₆ = 0 through the constraint and penalty structure.Table SEQ Table \* ARABIC 6. Minimizing Yellow Tofu Production Waste CapacityMaximizeProductWastesignRHSLHSSlack/ SurplusYellow TofuWalik TofuTofu DregsSoybean HuskPulp WasteSoybean Husk Wastex1x2x3x4x5x6Maximize60000120060002500-1200-50071671880.6Soya bean0.041700000<5049.80.2Wood0.008300000<109.90.1Turmeric0.0001300000<0.150.10.0Working hours0.00670.0020000<88.00.0Capacity110000<12001194.06.0Pulp Waste0.00420-1010>00.00.0Leather Waste0.002500-101>03.0-3.0NonNeg x1100000>01194.0-1194.0Non Negative x2010000>00.00.0NonNeg x3001000>05.0-5.0Variables1194.0305.01493000Objective71671881Based on financial feasibility calculations, the tofu production business with an optimization and waste minimization approach is declared feasible to run. With an initial investment of Rp 120,000,000 and an annual net cash flow of Rp 71,671,881, the Net Present Value (NPV) value is Rp 151,690,557, which indicates that the project's benefits are greater than the investment costs. The Internal Rate of Return (IRR) value of around 42% also far exceeds the discount rate used of 10%, so the investment provides an excellent rate of return. In addition, the Benefit Cost Ratio (B/C) of 2.26 indicates that every Rp 1 of costs incurred can produce benefits of Rp 2.26. In terms of capital return time, the Payback Period is achieved in 1.67 years or approximately 1 year and 8 months, which indicates that the investment can be returned in a relatively short time.Table SEQ Table \* ARABIC 7. Assessment of the Feasibility of GTT KediriYearInvestment / Cash Flow (Rp)10% Discount FactorPresent Value (PV) (Rp)Accumulated Cash Flow (Rp)0−120,000,0001,000−120,000,000−120,000,000171,671,8810.90965,156,255−48,328,119271,671,8810.82659,232,05023,343,762371,671,8810.75153,847,31895,015,643471,671,8810.68348,952,108166,687,524571,671,8810.62144,502,826238,359,405Total PV Benefits271,690,557NPV151,690,557B/C Ratio2.26IRR± 42%Payback Period1.67 yearsDiscussionA fishbone diagram was used to identify causal factors affecting high production waste and the efficiency of the yellow tofu production process. Based on the results of the optimization modeling, the causal factors were grouped into six main aspects: Manpower, Machines, Materials, Methods, Environment, and Management.From a material perspective, the limitations and characteristics of raw materials are the main causes of waste generation. Every 1,194.03 kg of yellow tofu produced produces approximately 5.01 kg of tofu dregs (a ratio of 0.0042) and approximately 3.00 kg of soybean skin (a ratio of 0.0025). Without proper management, this waste has the potential to waste raw materials. However, optimization results indicate that tofu dregs can be fully utilized as a by-product, resulting in zero net waste.In the Man (labor) factor, limited working hours are a critical constraint. The model shows that the 8-hour workday constraint is in a binding state (slack = 0), meaning that all labor capacity is being optimally utilized. This indicates that without improving work efficiency or increasing working hours, increased production has the potential to increase waste due to higher process pressures.Machine (equipment) factors also contribute to waste, particularly limited production capacity and efficiency of soybean processing equipment. Maximum production capacity was reached at 1,194.03 kg out of a 1,200 kg limit, leaving 6 kg of slack. This limitation indicates that the machine is operating near maximum capacity, so potential process imperfections can increase waste if not compensated for by appropriate processing methods.From the production method aspect, the initial production process was more oriented towards the main output without considering waste utilization. This is evident in the initial model, where no by-products were produced and waste had no economic value. After the production method was improved through the integration of by-products into the mathematical model, tofu dregs waste could be converted into a product with economic value (x₃ = 5.01 kg), thereby reducing the environmental impact while increasing the total value of the system.Environmental factors (work environment) relate to the potential for pollution from unmanaged solid waste. Without utilization, soybean pulp and skin waste have the potential to pollute the environment around the production site. With a waste minimization approach, all primary waste can be reduced to x₅ = 0 and x₆ = 0, indicating a more environmentally friendly production system.From a management perspective, production policies significantly influence waste generation. In the no-penalty model, production decisions are based solely on economic profit, with an objective value of Rp 7,164,179. After management introduced waste penalties of Rp 1,200/kg for tofu dregs and Rp 500/kg for soybean hulls, the system was encouraged to manage waste optimally. This demonstrates that a management policy integrating economic and environmental aspects can reduce waste without compromising production performance.The application of Multi-Objective Linear Programming (MOL) is able to provide production solutions that are both economically optimal and environmentally friendly. In the initial scenario without waste penalties, production decisions are completely dominated by the main product, namely yellow tofu, with a production volume of 1,194.03 kg and a profit value of Rp 7,164,179, while by-products and waste have not been considered. This condition reflects conventional production practices that generally only focus on short-term profits without considering the efficiency of waste utilization. The waste minimization aspect is included in the objective function by imposing economic penalties on tofu dregs and soybean skin waste, the model shows changes in the behavior of the production system. Waste that previously had the potential to be wasted has been successfully reduced to zero, because all dregs waste is converted into by-products with economic value. This shows that the mathematical approach is able to encourage changes in production decisions without reducing the amount of main production, while proving that waste actually still has economic potential if managed properly. From the technical operational side, constraints on working hours and the use of additional ingredients such as turmeric are in a binding condition, which indicates that labor capacity and production time are the main limiting factors in the system. On the other hand, primary raw materials such as soybeans and firewood still have remaining capacity, so increasing work efficiency or improving production methods has the potential to increase output without significantly increasing raw materials. The integration of production optimization and waste utilization also has a positive impact on the business's financial performance. The feasibility analysis results show an NPV of Rp 151,690,557, an IRR of approximately 42%, a B/C ratio of 2.26, and a Payback Period of 1.67 years. These values ​​indicate that the business is not only economically feasible but also has a rapid return on investment and relatively low financial risk. ConclusionThis study shows that the application of Multi Objective Linear Programming (MOLP) can significantly increase the efficiency of yellow tofu production at GTT Kediri from technical, economic, and environmental aspects. The optimization results produce yellow tofu production of 1,194.03 kg/day, with a decrease in total production costs from Rp 2,242,700 in existing conditions to Rp 907,700, or a reduction of approximately 59.5%, even though working hours increase from 7.5 hours to 8 hours per day. The constraints of working hours and the use of turmeric are in binding conditions, while soybean and firewood raw materials still have remaining capacity, which indicates an opportunity to increase process efficiency without additional main raw materials. The integration of waste minimization objectives in the mathematical model results in optimal waste management. From the production of 1,194.03 kg of yellow tofu, theoretically, 5.01 kg of tofu dregs and 3.00 kg of soybean skin are produced. By imposing an economic penalty of IDR 1,200/kg for tofu dregs and IDR 500/kg for soybean skin, all waste was successfully reduced to zero, because it was utilized as a by-product, with the value of tofu dregs sold at 5.01 kg. This proves that waste can be converted into a source of added value without reducing the main production. Fishbone analysis shows that waste and production limitations are influenced by the interaction of labor, equipment, raw materials, methods, environment, and management factors, with management policy as a key factor. The assignment of economic value and penalties to waste has proven effective in changing production decisions to be more efficient and sustainable. From a financial perspective, the optimization results show very decent performance, with an NPV of IDR 151,690,557, an IRR of around 42%, a B/C ratio of 2.26, and a Payback Period of 1.67 years. These values ​​confirm that the integration of production optimization and waste minimization not only improves environmental performance but also strengthens the feasibility and competitiveness of the yellow tofu production business. This research contributes to integrating MOLP-based production optimization and waste minimization to improve the efficiency, profitability, and sustainability of tofu MSMEs in Kediri, East Java.AcknowledgementsThank you to Kadiri University for contributing fully to this research activity and the Faculty of Engineering for contributing throughout the research process until publication.ReferencesADDIN Mendeley Bibliography CSL_BIBLIOGRAPHY [1]L. D. Indrasari, A. Komari, A. Y. Tripariyanto, and J. Sa’idah, “Socialization of green logistics on wire waste management as a commercial plate basket product,” Community Empower., vol. 7, no. 2, pp. 291–297, 2022, doi: 10.31603/ce.5825.[2]Redaktur, “Chevron Produsen Limbah B3 Terbesar,” Dunia Energi Chevron. Accessed: Feb. 18, 2025. [Online]. Available: https://www.dunia-energi.com/chevron-produsen-limbah-b3-terbesar/[3]A. Komari, “Integrasi Cost Plus Pricing, SWOT dan QSPM dalam Pemanfaatan Sampah Plastik,” JATI UNIK J. Ilm. Tek. dan Manaj. 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