Best Alternatives Determination and Financial Feasibility Analysis of the Cleaner Production Application at Amplang Crackers Industry

Abstract

Small-medium enterprises “Bintang Kertasada” is the mackerel fish crackers industry in Sumenep which generate solid and liquid waste, negatively affecting the environment. Therefore, a strategy in reducing the volume of waste produced and its impacts is the implementation of cleaner production, and further determined through this present study. A method of AHP (Analytical Hierarchy Process), followed by feasibility study through BEP (Break Event Point), PP (Payback Periode), B/C Ratio (Benefit-Cost Ratio), NPV (Net Present Value), and IRR (Internal Rate of Return) analysis were performed. This study demonstrated that the best alternative was processing fish skin into crackers that was attributed by the AHP score of 0.565. Furthermore, the financial feasibility analysis indicated that the production of fish scale crackers was feasible, indicated by the BEP of IDR 4,412 with 27,617 units produced, PP of 11 months, B/C ratio of 1.2, NPV of IDR 23,176,128, -, and IRR of 27.12%. Overall, the processing solid waste of fish skin into crackers was the best alternative with the most financial feasibility.