Benefit-cost for selecting technology in salt production

Abstract

This paper discusses the costs of choosing the technology for the salt production process using the Analytical Hierarchy Process (AHP) technique. The strength of the strategy to the selection of production process technology based on the benefit-cost ratio by several criteria. The choice of salt production technology is traditional techniques, tunnelling techniques, prism techniques, and FDS (Flow down system) techniques. The AHP structures are the criteria and sub-criteria. AHP criteria give impacts such as production process technology, salt quality, production costs, and human resources. From these criteria, the cost of investment modal and maintenance have the highest weight - the quality of salt determined by the colour, NaCl content, and size of the salt granules. The criteria for production costs consist of sub-criteria for raw material costs, capital investment costs, and indirect costs. The level of technology is conventional technology, semi-modern technology, and modern technology. Human resources are the experience of farmers in processing salt production. The production costs needed for the salt production process greatly determine the farmer decision to obtain the optimal quality and quantity of salt. The second priority is the ease of production process technology and successively the following criteria as human resources and the quality of the salt produced. The recommended technology for production process based on AHP by using B/C ratio and consideration as indicators are tunnel and prism techniques.