Simetrikal Journal of Engineering and Technology Vol. 02, No. 01, 2020 | 28 – 38 Production Optimization Design in Supply Chain Crude Palm Oil with Genetic Algorithm Method Meilita Tryana Sembiring, Prayogo Suryawan, M. Haikal Karana Sitepu, and Sawaluddin Department of Industrial Engineering, Faculty of Engineering, University Sumatera Utara Abstract. Indonesia is the world's largest producer of crude palm oil (CPO). At peak harvest conditions, frequent accumulation of fresh fruit bunches (FFB) due to abundant raw materials. Based on data from one palm oil mill in the province of North Sumatra, the percentage of FFB stays in the field overnight, which is 41% of the total FFB though, on the one hand FFB that has been harvested must be processed immediately because it can affect the quality of oil to be produced. Besides that, the factors of production and storage processes are also very influential on the quality of CPO. The imbalance in production planning shows that production planning is not yet optimal in the CPO supply chain so that a production optimization design is needed in the CPO supply chain. The genetic algorithm was chosen in the completion of the optimization model because of the complex characteristics of the CPO supply chain. The purpose of this research is to optimize the palm oil supply chain system to minimize production costs. This method shows that the optimum production yield for the third quarter of 2017 is 12,202,285 kg. With the proposed system an increase in the percentage of CPO production was obtained by 8.34% compared to the actual system. Keyword: Genetic Algorithms, Crude Palm Oil, Optimization, Supply Chain Abstrak. Indonesia adalah produsen crude palm oil (CPO) terbesar di dunia. Pada kondisi puncak panen, sering terjadi penumpukan Tandan buah segar (TBS) karena bahan baku yang melimpah. Berdasarkan data pada salah satu pabrik kelapa sawit di provinsi Sumatera Utara, persentase TBS menginap dilapangan selama satu malam yaitu sebesar 41% dari keselurahan TBS olah, di satu pihak TBS yang telah dipanen harus segera diproses karena dapat mempengaruhi kualitas minyak yang akan dihasilkan. Selain itu faktor proses produksi dan penyimpanan juga sangat berpengaruh terhadap kualitas CPO. Ketidak-seimbangan perencanaan produksi menunjukkan belum optimalnya perencanaan produksi pada rantai pasok CPO sehingga diperlukan suatu rancangan optimasi produksi pada rantai pasok CPO. Algoritma genetika dipilih dalam penyelesaian model optimasi karena karakteristik rantai pasok CPO yang kompleks. Tujuan dari penelitian ini yaitu mengoptimasi sistem rantai pasok minyak sawit untuk meminimumkan biaya produksi. Metode ini menunjukkan hasil produksi optimum untuk Triwulan III 2017 adalah sebesar 12.202.285 kg. Dengan sistem usulan diperoleh peningkatan persentase produksi CPO sebesar 8,34% dibandingkan sistem aktual. Kata Kunci: Algoritma Genetika, Crude Palm Oil, Optimasi, Rantai Pasok Received 27 January 2020 | Revised 26 February 2020 | Accepted 27 February 2020 *Corresponding author at: Department of Industrial Engineering, Faculty of Engineering, University Sumatera Utara, Medan, Indonesia E-mail address: meilita_tryana@yahoo.co.id Copyright © 2020 Published by Talenta Publisher, p-ISSN: 2656-1476, e-ISSN: 2655-8599 Journal Homepage: https://talenta.usu.ac.id/index.php/jet