Title: Decision support system for the feasibility of investment in the virgin coconut oil agro-industry

Authors: Meilizar; Ridha Luthvina; Nurike Oktavia; Putranesia

Addresses: Department of Agro-Industry Logistics Management, Polytechnic of ATI Padang, Bungo Pasang Tabing Padang, 25171 West Sumatera, Indonesia ' Department of Agro-Industry Logistics Management, Polytechnic of ATI Padang, Bungo Pasang Tabing Padang, 25171 West Sumatera, Indonesia ' Department of Agro-Industry Logistics Management, Polytechnic of ATI Padang, Bungo Pasang Tabing Padang, 25171 West Sumatera, Indonesia ' Department of Civil Engineering, Bung Hatta University, West Sumatera, Indonesia

Abstract: The agro-industry faces investment challenges when natural datasets and economic analyses are not taken into consideration. Investing in the processing of coconut to virgin coconut oil (VCO) also represents a substantial opportunity under Agriculture 4.0. This paper presents a decision support system that enables a decision-based investment on new VCO agro-industries. It involves improving the management system, which was observed in several aspects before investing. The method combines natural data with economic analysis, which involves spatial analysis, location quotient, capacity production planning, and financial analysis. Four case studies were used to determine the feasibility of VCO investment, with the selected potential area being Pariaman District, West Sumatera, Indonesia. Despite its shortcomings, this DSS program facilitates accurate and fast decisions for the investor. However, the program is in need of future improvements to be able to become a completely online application without overlays.

Keywords: decision support system; feasible investment; virgin coconut oil; VCO; agro-industry; capacity production planning.

DOI: 10.1504/IJADS.2023.127940

International Journal of Applied Decision Sciences, 2023 Vol.16 No.1, pp.42 - 66

Received: 04 May 2021
Accepted: 04 Sep 2021
Published online: 22 Dec 2022 *