ABSTRACT
Production allocation and scheduling is the phase in production management that creates a detailed description of operations to be executed in a given period of time. The complexity of the production process and on-time delivery issue makes pharmaceutical companies had difficulties to have scheduling plans which are well balanced with actual production capacity. The objective of the research is to propose a production allocation model that captures the key aspects of the pharmaceutical industry that maximizes the profit and can be used for scheduling activities. The model is implemented to determine product allocation and schedule at PT. X * , a pharmaceutical company in Indonesia. The secondary data is collected from 1-month production report and via in-depth interview with planner of PT.X. The model is formulated using Integer Linear Programming (IP), and then, Gantt chart is used to develop the scheduling plan. The numerical example shows that the model solutions have higher profit than the current production allocation and scheduling practiced by the company.
