Analysis of Production Strategy Based on Sales Patterns at the Tungku Duta Selebah Cooperative, Braja Selebah District, East Lampung

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FORMOSA NEWS - Lampung - Fluctuating Production Strategy Cuts Costs for Lampung Stove Cooperative, Study Finds. A production strategy that follows sales fluctuations delivers the lowest operational costs for the Tungku Duta Selebah cooperative in Braja Selebah District, East Lampung. The finding comes from research by Diky Angga Hendrawan of Universitas Nahdlatul Ulama Lampung, Dina Nadiah Faiqoh of Universitas Nahdlatul Ulama Lampung, and Putri Sandora of Institut Bakti Nusantara Lampung. Published in 2026 in the Journal of Finance and Business Digital, the study analyzes production planning using 2023 sales data and concludes that a fluctuating production pattern is the most efficient approach for the cooperative’s stove manufacturing operations.

Background: Production Planning Challenges in Cooperative Manufacturing
Tungku Duta Selebah operates as a joint business group producing household stoves in large quantities. The cooperative distributes products through wholesalers who resell them to multiple regions. This distribution model creates irregular demand patterns, making production planning more complex. Pre-survey data show the cooperative set a production target of 102,000 units for 2023 but produced only 96,220 units. Sales followed the same fluctuation pattern, with total revenue reaching Rp1,731,960,000 at a unit price of Rp18,000. The mismatch between production and demand created inefficiencies and prompted evaluation of alternative production strategies.
Production planning plays a central role in managing labor, raw materials, and capacity. Businesses typically choose among three production approaches:

• Constant production: output remains the same each period.
• Moderate production: stable output with periodic adjustments.
• Fluctuating production: output follows demand patterns.

Selecting the wrong model can increase storage costs, overtime, subcontracting expenses, or labor turnover.

Methodology: Comparing Three Production Strategies
The research team used 2023 production and sales data collected through documentation, interviews, and direct observation at the cooperative. The researchers compared three production strategies: constant, moderate, and fluctuating.

The analysis calculated additional costs associated with each strategy, including:

• Inventory storage costs.
• Overtime labor costs.
• Subcontracting costs.
• Labor turnover costs.

By quantifying these cost components, the study identified which production model minimized operational expenses while matching sales demand.

Key Findings: Fluctuating Production Most Cost-Efficient
The comparison revealed significant differences in total additional costs among the three production patterns:

• Fluctuating production pattern: Rp4,572,800 total additional cost.
• Constant production pattern: Rp5,240,000 total additional cost.
• Moderate production pattern: Rp7,320,000 total additional cost.

The fluctuating production strategy produced the lowest total cost, making it the most efficient option for the Tungku Duta Selebah cooperative. The constant production pattern generated higher storage costs because output remained steady even when demand dropped. Excess inventory accumulated and increased holding expenses. The moderate pattern reduced some storage costs but required higher subcontracting expenses when demand exceeded production capacity. The fluctuating pattern avoided inventory buildup by adjusting production to match demand. Although it required overtime and labor adjustments, the total cost remained lower than the other alternatives.

Implications for SMEs and Cooperative Businesses
The findings offer practical guidance for small and medium enterprises, particularly cooperatives engaged in manufacturing. Businesses that rely on irregular orders may benefit from aligning production with sales patterns rather than maintaining fixed output levels. For policymakers, the study reinforces the importance of capacity planning training for cooperative enterprises. Efficient production strategies can increase income stability, reduce operational waste, and strengthen competitiveness in regional markets. For business managers, the results highlight the importance of data-driven decision-making. Historical sales data can be used to forecast demand and guide production scheduling. This approach reduces unnecessary costs and improves supply responsiveness.

Author Profiles

Diky Angga Hendrawan, S.E., M.M. is a researcher in operations and production management at Universitas Nahdlatul Ulama Lampung. His work focuses on production strategy, cost efficiency, and cooperative business development.

Dina Nadiah Faiqoh, S.E., M.M. is a lecturer at Universitas Nahdlatul Ulama Lampung specializing in business management, marketing strategy, and small enterprise operations.

Putri Sandora, S.E., M.M. is an academic at Institut Bakti Nusantara Lampung with expertise in production management and cooperative-based industrial development

Sources
Hendrawan, Diky Angga; Faiqoh, Dina Nadiah; Sandora, Putri. “Analysis of Production Strategy Based on Sales Patterns in the Tungku Duta Selebah Cooperative, Braja Selebah District, East Lampung.” Journal of Finance and Business Digital (JFBD), Vol. 3 No. 1, 2026, halaman 153–164.
DOI: https://doi.org/10.55927/jfbd.v5i1.8
URL: https://journaljfbd.my.id/index.php/jfbd