A Profit Analysis of Indonesia’s Cananga Essential Oil Production Using System Dynamics

International Journal on Food System Dynamics Pub Date : 2020-10-20 DOI:10.18461/IJFSD.V11I4.61

Ernaning Widiaswanti, P. Pratikto, C. Cahyani, I. Tama

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Abstract

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%.

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用系统动力学分析印尼加南加精油生产的利润

卡南加精油是从刚采摘的卡南加花中蒸馏提取的一种油。加南加油作为香料和香料具有很高的经济价值。在印度尼西亚，卡南加精油主要由中小型酿酒厂生产。印尼卡南加精油生产最突出的障碍是其价格的波动。这种价格波动是酿酒商利润减少的原因。本研究的目的是开发一个系统动力学模型，以最大限度地提高印尼卡南加精油生产的利润。采用系统动力学方法计算了一些变量对加拿大精油产量的影响与利润的关系，以及这些变量之间的相互作用。该系统动力学模型中检查的场景包括增加蒸馏器的数量、减少燃料费用，以及两者的结合。这项研究假设，参数的变化将能够在未来五年内增加印尼卡南加精油生产的利润。结果表明，增加蒸馏器的数量和降低燃料费用可以使加拿大精油的产量平均提高20%，利润提高62%。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal on Food System Dynamics Economics, Econometrics and Finance-Economics, Econometrics and Finance (miscellaneous)

CiteScore

1.60

自引率

0.00%

发文量

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.