scholarly journals System dynamics modeling on new generation cooperative as an alternative to enhance bargaining position of potato farmers in Bener Meriah district

2021 ◽  
Vol 922 (1) ◽  
pp. 012063
Author(s):  
A Baihaqi ◽  
L Hakim ◽  
E Marsudi ◽  
Zulkarnain
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Raw Materials ◽  
Selling Price ◽  
Dynamics Modeling ◽  
Bargaining Position ◽  
Business Efficiency ◽  
New Generation Cooperative ◽  
Capital Ownership ◽  
New Generation

Abstract This study aims to create a New Generation Cooperative (NGC) model in potato supply chain in Bener Meriah District, which is also the subject of research, by applying the system dynamics method to build a dynamic and complex NGC model. This modeling is carried out as an effort to enhance bargaining position at farm level. The result showed that non-formal partnership relationship in potato supply chain is originated from the gap in capital ownership between farmers and intermediary traders, thus giving rise to motivation to control farmers by providing financial loan to farmers. Loan recipient farmers must commit to sell potato only to financial aid traders. This causes the loss of opportunity to sell potato to other parties, which has an impact on the occurrence of pressure on selling price of farmers’s potato. Farmers face asymmetry information, especially regarding the selling price prevailing in the market. On the other hand, formal partnership starts with the industry motivation that is to obtain raw materials, that meet quality requirements on an ongoing basis. In a formal partnership, technology transfer occurs from partners to farmers. Farmers get marketing and price certainty, wider marketing access, and have the opportunity to earn higher profits. Based on the simulation results, data obtained that farmers who are the NGC members get higher revenue, profit, and business efficiency level, than non-partnership farmers.

System Dynamics Modeling for Strategic Management of Green Supply Chain

2011 ◽  
pp. 2617-2649 ◽  
Author(s):  
Ying Su ◽  
Zhanming Jin ◽  
Lei Yang
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Strategic Management ◽  
Simulation Model ◽  
Environmental Issues ◽  
Green Supply Chain ◽  
System Dynamics Modeling ◽  
Dynamics Modeling ◽  
Reverse Supply Chains ◽  
Performance Measurement Systems

Environmental issues are rapidly emerging as one of the most important topics in strategic manufacturing decisions. Perusal of the literature has shown many models to support executives in the assessment of a company’s environmental performance. Unfortunately, none of these identifies operating guidelines on how the systems should be adapted to support the deployment of different types of green supply-chain strategies. This chapter seeks to investigate how system dynamics modeling can be supportive for management of feasible green supply-chain strategies. Besides conceptual considerations, we base our arguments on the development of efficient performance measurement systems for remanufacturing facilities in reverse supply chains, taking into account not only economic but also environmental issues. The behavior of the green supply-chain management under study is analyzed through a simulation model based on the principles of the system dynamics methodology. The simulation model can be helpful for green strategic management as an experimental tool, which can be used to evaluate alternative long-term strategies (“what-if” analysis) using total supply chain profit as measure of strategy effectiveness. Validation and numerical experimentation further illustrate the applicability of the developed methodology, while providing additional intuitively sound insights.

scholarly journals Optimal Pricing and Ordering Policy for Two Echelon Varying Production Inventory System

2014 ◽  
Vol 2014 ◽  
pp. 1-11 ◽  
Author(s):  
Brojeswar Pal ◽  
Shib Sankar Sana ◽  
Kripasindhu Chaudhuri
Keyword(s):  
Supply Chain ◽  
Raw Materials ◽  
Chain Model ◽  
Selling Price ◽  
Lot Size ◽  
Ordering Policy ◽  
Supply Chain Model ◽  
Production Inventory ◽  
Test Feasibility ◽  
Optimal Ordering

The paper proposes a two-stage supply chain model for price sensitive demand in imperfect production system while manufacturer and supplier are the members of the chain. The supplier screens the raw materials first and supplies good materials to the manufacturer at a constant rate. The production rate varies randomly within a finite interval. The inventory cycle of the manufacturer starts with shortages and production and it finishes with shortages again, in which shortages are partially backlogged. We consider a mixture of LIFO (last in, first out) and FIFO (first in, first out) dispatching policies to fill the backlogged demand. Thus, the objective of the proposed paper is to determine the optimal ordering lot-size and selling price of the manufacturer such that the per unit average integrated expected profit of the supply chain model is maximized. A numerical example is provided to analyze and illustrate the behavior and application of the model. Finally, sensitivity analysis of the key parameters are presented to test feasibility of the model.

scholarly journals Information and material delays effect on price setting, operating contribution margins and cash conversion cycles in feed ingredients supply chain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marcos Fraiha
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Animal Feed ◽  
Model Simulation ◽  
Dynamics Modeling ◽  
Content Type ◽  
Pricing Decisions ◽  
Information Delay ◽  
Multiple Variables ◽  
The Impact

PurposeThe purpose of this report was to evaluate the effectiveness and practicality of system dynamics modeling in integrating econometric equations to describe the effects of supply chain material and information delays on pricing decisions and consequent financial results in an animal feed export business.Design/methodology/approachAn empirical dynamic model, loaded with econometric theory of price effect on competitive demand, was used to describe the input data.FindingsThe model simulation outputs proved themselves relevant in analyzing the complex interconnections of multiple variables affecting the profitability in a commercial routine, supporting the decision process among sales managers. The impact of information delay on price decisions and business financial results were estimated using the model proposed.Originality/valueThis paper describes an empirical model, based on system dynamics, that predicts operating contribution margins and cash conversion cycles based on estimation of information and material delays in a supply chain. The method is pragmatic and simple for business routine implementation.

Sign in / Sign up

Export Citation Format

Share Document