A STUDY OF BIOMASS FUEL FROM CASSAVA STUMP BUSINESS MODEL BY LOGISTICS AND SUPPLY CHAIN MANAGEMENT CONCEPT

Abstract

This research is to study a business model of the biomass fuel from cassava stump by logistics and supply chain management concept. The business results are the capital is ฿5 million, assets not exceeding ฿50 million with 50 employees. The cassava roots purchase price is ฿670 to ฿970 per ton. The moisture and contaminants are not exceeding 35% and 20% of weight, respectively. The biomass fuel price of cassava roots is ฿2,300 to ฿2,500 per ton. The net cash flow of this business in 10 years is ฿1,916,919 per year or the net present value is ฿8,632,817.51 with the discounted rate is 12%. The rate of return is equal to 40.675% and the return on investment is 1.06. The payback period is 3 years and 5 months. The conclusion of this business model is worth to investment.