3rd Asia Pacific International Conference on Industrial Engineering and Operations Management

Techno-Economic Study on Improvement of Slaughterhouses by Considering Sensitive Analysis and Exchange Rate

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Track: Engineering Economy

This article discusses the improvement of Aqidawati & Sutopo's (2017) article, related to the analysis of the feasibility of investing in facilities that meet the standards to obtain Safe, Healthy, Whole, and Halal Beef at the Surakarta Slaughterhouse. Previous studies evaluated using a technical-economic approach with investment feasibility criteria indicated by the value of NPV>0, PP <20 years (economic age), B/C ratio 1, and production yields greater than the amount of BEP. Then, a proposed improvement is made by adding aspects of the techno-economic study by considering exchange rates and sensitivity analysis. As a result, the best alternative is obtained; namely alternative level 1-C with an NPV value of Rp 88,462,036, MARR < IRR (3% < 7.23%), BC ratio value of 1.06, and a payback period that meets company requirements (11.15 < 20). So it can be concluded that the investment can be said to be feasible. In addition, the results of the sensitivity analysis also show that the Annual Worth (AW) is the most sensitive to changes in retribution prices. So that it gives consideration to the government in determining the decision on the amount of the retribution price.

Keywords

Investment feasibility analysis, Slaughterhouse, Sensitivity analysis, Techno-Economic Study

Published in: 3rd Asia Pacific International Conference on Industrial Engineering and Operations Management, Johor Bahru, Malaysia

Publisher: IEOM Society International
Date of Conference: September 13-15, 2022

ISBN: 978-1-7923-9162-0
ISSN/E-ISSN: 2169-8767