System Dynamics Modeling on Integrated Supply Chain Management of Potato Agribusiness

Abstract

The objectives of this study is to design a model of integrated supply chain management of potato agribusiness in an effort to increase revenue and bargaining position of farmers in Aceh Province. The method applied to achieve these objectives was the methodology of system dynamics. Formulation of the models was conducted by using Vensim DSS Software, followed by simulation. The result of this study showed the role of five major scenarios which were important to actualize the integrated supply chain management of potato agribusiness in Aceh Province, those were: scenario 1, increasing the productive land area, resulting in the increasing of production volume; scenario 2, using the certified potato seed named “umbi G2”, generating the higher level of production; scenario 3, providing the certified potato seed based on the needs, showing that the quantity of production increased; scenario 4, shortening the payment receivables interval of farmers and cooperatives, which showing the increasing of cash amount; scenario 5, doing certification to the potato from synergistic partnerships farmers, showing the increasing of acceptance, profitability, R/C, and cash.