E3S Web Conf.
Volume 328, 2021International Conference on Science and Technology (ICST 2021)
|Number of page(s)||7|
|Section||Material Theory, Modeling & Characterisation, System Manufacture, Dynamic System|
|Published online||06 December 2021|
Conceptual Model of Essential Oil Agroindustry Development by Using System Dynamics Approach
Department of Industrial Engineering, Faculty of Engineering, Trunojoyo University, Bangkalan, Indonesia
* Corresponding author: firstname.lastname@example.org
Essential oil industry is a growing industry in Indonesia due to the abundance of raw materials. However, the current production rate is still not able to meet the demands of domestic and foreign industries. This research aims to map Indonesian essential oil agroindustry, which starts from the supply of raw materials at the farm level to the marketing of products of essential oils at the exporter level. This research employed system dynamics approach. A conceptual model was built to determine factors that influenced the production of essential oils along the supply chain and is presented in a causal loop diagram. The results of this research indicate that the price factor is the main factor influencing the production of essential oils, and can be used as a basis to assist in determining the strategy for developing essential oil agroindustry in the future. This research will be useful for policy makers, all business actors involved in the essential oil agroindustry, and future researchers.
Key words: Essential oil agroindustry / Causal loop diagram / System dynamic
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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