Evaluating Smart Greenhouse Viability Through Engineering Design and Software Cost Modelling

Abstract

Introducing smart greenhouse technology in tropical agricultural in Indonesia has the potential to bring about substantial advantages, such as higher crop yields, decreased water consumption, and enhanced food security. Nevertheless, the feasibility of this technology must be evaluated before it can be widely adopted. The objectives of this study were to evaluate the viability of smart greenhouse technology in using the engineering economics and software cost estimation model (SCEM), consider the fixed and variable cost for operational, and effort for developing the supporting modules. The findings of this study suggest that the investment in Smart Greenhouse technology is economically viable and financially justified. The Internal Rate of Return (IRR) of 11% exceeds the 10% discount rate, Benefit Cost Ratio (BCR) of 1.16 signifies that the discounted value of benefits surpasses costs over the project lifetime, with the economics return 16% higher than the break-even level. The Smart Greenhouse investment will become profitable after five years, with positive returns above the minimum threshold. The SCEM analysis shows that the software development workload is significant for some modules, such as Smart Agri Engrow and Smart Agri Nutrigrow. These software cost estimates can now be used for budgeting, planning, and assessing the feasibility of the Smart Greenhouse technology implementation.