Application of Dynamic Systems to Model Increasing Profitability of UMKM Production in the “SENTRA IKAN BULAK”

The growth of UMKM in various sectors has triggered intense competition between these
business actors. One of them is the craft sector. The use of social media is expected to boost turnover,
but the benefits are still lacking. In the craft sector, the problem that arises on the MSME side is the
cessation of production. This causes decreasing turnover and has an impact on reducing profits. This
dynamic system modeling is used to see how profit-increasing strategies can be carried out. Based on
the dynamic system, there are several variables, namely the Causal Loop Diagram (CLD) and the Stock
Flow Diagram (SFD) that are built, there are 3 scenarios in increasing production profits, namely:
increasing production, reducing the cost of tools and materials and lastly is taken simultaneously the
first and second scenarios. From the simulation carried out, it was found that within a period of 12
months it was seen that increasing production by reducing the cost of tools and materials could increase
sales so that income increased and profits increased. A process of identifying production process
change variables is needed as one of the production process variables that was stopped.