Analysis Of The Production Function Of Fried Onions At Pt Sinergi Brebes Innovative Brebes Regency

Abstrak

PT Sinergi Brebes Innovative is a company engaged in the processing of shallots. The use of raw materials for shallots is very volatile because it is influenced by the harvest time and price of shallots. The purpose of this study is to determine the influence of the use of production factors on the production of fried onions at PT Sinergi Brebes Innovative by using the Cobb-Douglass production function analysis tool. The value of the regression coefficient of shallots is 0.134 and it is a positive sign meaning that every addition of shallots by 1% will increase the production of fried onions by 0.134%, cateris paribus. The value of the labor regression coefficient is 0.039 and a positive sign means that every 1% increase in labor will increase the amount of fried onion production by 0.039%, cateris paribus. The value of the regression coefficient of cooking oil is 0.066 and has a positive sign, meaning that every addition of cooking oil by 1% will increase the amount of fried onion production of 0.066%, Cateris Paribus. The value of the regression coefficient of flour is 0.663 and a positive sign means that every addition of flour by 1% will increase the amount of fried onion production by 0.663%, cateris paribus. The value of the salt regression coefficient is 0.082 and a positive sign can be interpreted that every 1% addition of salt will increase the amount of fried onion production by 0.082%, cateris paribus. The sum value of the coefficient value is 0.984<1 this means that the production of fried onions is in the condition of Decreasing Return to scale.