Feasibility Study of the Location Selection for Oil Palm Factory in Ubon Ratchathani Province

Abstract

This study aimed to study a selection of a palm oil factory location in Ubon Ratchathani province. According to Ubon Ratchathani province had many palm oil farmers, however, none of palm oil factory established in this province. The framework of study was drawn from data collections from the energy company in Ubon Ratchathani province and related research studies concerning eight factors in choosing technical location comprising of raw materials resource, labor, location of markets, land, transportation, energy, infrastructure, and government policy.                Data collection consisted of the primary and secondary data through analyzing with five location selection methods such as rating plan, cost comparison, location break-even analysis, distance comparison and transportation model. Eventually, the weighted method was applied to conclude the appropriable location. The findings indicated that there were several palm oil plantation fields was continually increased in five districts of the province, such as Na Chaluai, Buntharik, Nam Yuen, Si Mueang Mai, and Det Udom districts, and palm oil was harvested as 47,313 tons a year. If the factory was successfully founded, only nine percent of materials was needed for palm oil production processes, 4,258.17 tons a year comparing to a general production capacity of 4,088 tons a year or 11.2 tons a day.  After completing the analyze with five location selection methods and weighted methods, it was summarized that the most appropriable location to establish the palm oil factory in Ubon Ratchathani was in Nam Yuen district, weighted average at 85 percent from five location selection methods.