The increasing demand for Crude Palm Oil(CPO)makes palm oil production companies continue to improve production planning continuously in order to meet customer demand.Companies that are engaged in CPO production in the Medan city experience problems are not optimal due to companies are often faced with a situation in the form of a production mismatch with the volume of demand due to demand fluctuation.Therefore it is necessary to optimize the procurement of CPO by using linear programming methods.This method is used to maximize or minimize the resources owned by the company with several decision variables,objective functions and constraint functions.The results shows that the decision variables used are CPO cost,the cost of procurement using their own FFB,purchasing FFB cost and processing costs.The objective function is the maximization of company resources and constraint functions consisting of the maximum capacity of the factory,the availability of purchase FFB,the purchase quota of FFB,the availability of direct labor,processing transfers and processing costs.
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