This paper demonstrates the use of dynamic simulation of fish processing to increase added-value and environmentally friendly fish processing. However, the existing fish processing is limited and traditional even though the yield of marine commodities remains high, additionally contributing to environmental pollution. The object of this research is Sumber Pangan Group, a business engaged in the processing of pindang fish (smoked fish) located on the Prigi Coast. Efforts to identify factors that influence the fish processing system include designing a dynamic fish processing system using Powersim software and providing proposed solutions to fish processing problems. Then fish processing is evident to increase the added value of income, providing an environmentally friendly means. The applied scenario utilizes the waste products and maximizes fish yields by increasing the production of liquid-based smoked fish and processing the waste into petis using a simulation based on a dynamic system approach. Attempts also include the scenario of decreasing production costs and increasing demand. Based on the study results, it was found that the best fish processing was 70% removal, 30% liquid smoking, and the total added value of IDR. 11,819,500 waste treatment. The added value is obtained from the difference in profits from fish processing, upon the completion of profit margin improvement

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