Application of Analytical Hierarchy Process (AHP) to determine best cost efficiency program: A case study of green farm company

Purpose: CV. XYZ as hydroponic agriculture, for years since 2019, producing high-demand crops such as lettuce and spinach. Nevertheless, there has been a decline in revenue that is a result of the inefficiencies in the management of operational costs. Thus, this study aimed to come up with identification and prioritization of cost-efficiency strategies with the intervention of in-depth interviews and Analytical Hierarchy Process (AHP). Research Methodology: A mixed-mode methodology was used. The qualitative in-depth interviews between the Board of Directors were analyzed for the most important triangulated criteria and subcriteria that drive operational efficiency. A quantitative AHP analysis was done to slightly compare these factors. Results: Technology Levers turned out to be the most influent factor, hybrid farming system was the most feasible alternative, with advantages for offering a balanced system that integrates traditional farming practices with modern technologies for sustainability and efficiency. Conclusion: So, integrating human capital development and technological innovation is imperative for optimal operation efficiency and sustainable growth in the hydroponic agriculture sector.

Authors

Publication Details

Journal
Journal of Multidisciplinary Academic Business Studies
Published
2024-12-10
DOI
https://doi.org/10.35912/jomabs.v2i1.2589
Primary Topic
Rural Development and Agriculture
Type
article
Field-Weighted Citation Impact
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article

Application of Analytical Hierarchy Process (AHP) to determine best cost efficiency program: A case study of green farm company

Fajar Palguna Wijaya, Manahan Siallagan
Journal of Multidisciplinary Academic Business Studies
Rural Development and Agriculture
article

Application of Analytical Hierarchy Process (AHP) to determine best cost efficiency program: A case study of green farm company

Fajar Palguna Wijaya, Manahan Siallagan
article en

Abstract

Purpose: CV. XYZ as hydroponic agriculture, for years since 2019, producing high-demand crops such as lettuce and spinach. Nevertheless, there has been a decline in revenue that is a result of the inefficiencies in the management of operational costs. Thus, this study aimed to come up with identification and prioritization of cost-efficiency strategies with the intervention of in-depth interviews and Analytical Hierarchy Process (AHP). Research Methodology: A mixed-mode methodology was used. The qualitative in-depth interviews between the Board of Directors were analyzed for the most important triangulated criteria and subcriteria that drive operational efficiency. A quantitative AHP analysis was done to slightly compare these factors. Results: Technology Levers turned out to be the most influent factor, hybrid farming system was the most feasible alternative, with advantages for offering a balanced system that integrates traditional farming practices with modern technologies for sustainability and efficiency. Conclusion: So, integrating human capital development and technological innovation is imperative for optimal operation efficiency and sustainable growth in the hydroponic agriculture sector.

Journal of Multidisciplinary Academic Business StudiesVol. 2(1)
Zero hunger
Openalex Percentile: Top 61%
Rural Development and Agriculture
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