A DECISION SUPPORT FOR PHASED COCONUT AGROINDUSTRY DEVELOPMENT: PRIORITIZING INDUSTRY TYPES AND LOCATIONS USING AN AHP–ENTROPY–TOPSIS APPROACH

Abstract

In various strategic decision-making problems, a phased decision-making framework is often required, for example, in planning the development of the coconut agroindustry. Therefore, this study aims to determine the priority of coconut processing industry types that are feasible to develop in the short-term and to identify the optimal locations for the development of an integrated coconut agroindustry in the long-term. This study uses an MCDM approach through the integration of the AHP, entropy, and TOPSIS methods. The AHP is used to obtain criterion weights based on expert assessment, while the entropy method produces objective weights based on empirical data variation. The integration of these two approaches allows for the combination of subjective and objective information, resulting in more balanced criterion weights. Furthermore, the TOPSIS method was applied to determine the final priority of industrial alternatives and development locations. The analysis results showed that coconut-based animal feed industry was the most feasible priority alternative to be developed in the short-term. Meanwhile, Binuang sub-district was identified as the optimal location for integrated coconut agroindustry development in the long-term. The relationship between industrial and location decisions was interpreted through a conceptual network-based decision-making perspective to reflect the interdependence and feedback between decisions. Based on this approach, this study proposes a phased decision support framework that integrates industrial priorities and location selection into an integrated analytical structure, and has the potential to be applied in various contexts of agroindustry development planning for various commodities, regions, and other multi-stage strategic decisions.

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