Ernaning Widiaswanti, P. Pratikto, C. Cahyani, I. Tama
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A Profit Analysis of Indonesia’s Cananga Essential Oil Production Using System Dynamics
Cananga essential oil is a type of oil extracted by distillation from freshly-picked cananga flowers. Cananga oil is of a high economic value for its use as fragrances and flavors. In Indonesia, cananga essential oil is majorly produced by small and medium distillers. The most prominent barrier to cananga essential oil production in Indonesia is the fluctuation in its price. This price fluctuation is responsible for the decrease in profits earned by distillers. The aim of this research was to develop a system dynamics model to maximize profits in the cananga essential oil production in Indonesia. A system dynamics approach was employed to figure out the effect of some variables on cananga essential oil production in relation to profits and the interaction of such variables with each other. The scenarios examined in this system dynamics model include to increase the number of distillers, to decrease the fuel expenses, and a combination of both. This research assumed that a change in parameter will be able to increase profits from the cananga essential oil production in Indonesia over the next five years. The results show that increasing the number of distillers and decreasing the fuel expenses have been able to increase cananga essential oil production average by 20% and profits by 62%.
期刊介绍:
Understanding the development of the food system requires a system view that captures the complexity of the system and its many interrelationships with its economic, social and natural environments. The Journal accepts and offers papers within this broad range of issues focussing on the management, policy, marketing, consumer aspects, transparency, e-commerce, institutional or regional development, information and communication systems, ressource economics, production economics, chain management, network economics, and similar aspects. Papers may focus on modeling, empirical research or theoretical analyis. This broad range of publication opportunities asks authors to follow clear lines of arguments and to present arguments in a convincing way that avoids unnecessary complexities of model formulations if not relevant for the support of arguments. The publication of scientific articles is complemented by a number of sections that provide room for publications with a more specific focus: ''Case studies'': A section on case studies of the ''Harvard Type'' allows the publication of studies that might build on established scientific methodology but demonstrate its use in ceratin decision environments. Case studies might be complemented by ''teaching cases'' that are kept on a database outside the journal but accessible to readers on approval by authors. ''Research Forum'': It allows to discuss newly emerging research challenges or to contribute to ongoing scientific discussions on research problems. In addition, authors might initiate a discussion on issues brought up by articles published in the journal. ''Research Notes'': It provides room for specific shorter scientific contributions with a narrow scope.