Design of red chili commodity pricing using the BPMN approach and Sugeno's fuzzy inference system

Abstract

Red chili is Indonesia's leading commodity. Red chili is a raw material for various food products, cosmetics, pharmaceuticals and others. Fluctuations in the availability of red chili commodity supply affect the price of red chili commodity products. Pricing can occur because of supply and demand. Un­cer­tain conditions also influence pricing due to fluctuations in raw material prices, ultimately affecting the price of carrageenan products. This condition makes price determination very difficult. Therefore, this study aims to analyze and design a pricing mechanism and determine the optimal margin in the red chili commodity marketing system. This study uses a systems analysis and design approach. Input-process-output (IPO) diagrams describe system requirements. Industrial business processes are described by the Business Process Model and Notation (BPMN) ver. 16.0. Meanwhile, to determine the optimal margin, Sugeno's fuzzy inference system approach is used by simulating the model in 3 margin scenarios: pessimistic, moderate, and optimistic. The simulation results were tested using the MAPE test, in which the results were compared between fuzzy price results and markup prices using markup values of 20%, 25%, and 30%. The analysis results show that the price is determined by demand and supply. The price obtained from the formulation of the Sugeno fuzzy model shows an optimal margin of Rp. 16,600.