Dynamic Simulation Model of Salt Supply Chain to Increase Farmer Income
Isnaini Muhandhis; Heri Susanto; Ully Asfari
Universitas Wijaya Putra
Abstract
The average national salt production is around 2.5 million tons per year has not been able to meet domestic salt demands. One of the factors that caused this was the low incentives received by farmers so that farmers were reluctant to carry out production in the following year. As the main actor in the national salt industry, farmer-s welfare needs to be considered to ensure the sustainability of national salt production. This study aims to develop a dynamic model of the salt supply chain by identifying internal and external factors that influence the system. We use system dynamic methods because this framework has the ability to model nonlinear equations among variables and can represent feedbacks loop relationships. From the basemodel simulation results, we developed several scenarios that we can use to improve the welfare of salt farmers and eventually increasing salt production in a sustainable manner. From those scenarios, we found that by using the scenario of land intensification with annual salt production technology, farmer-s profits could be increased up to Rp 25,839,900 per ha per season at the end of the simulation in 2031.
Keywords: salt, supply chain, scenario, simulation, system dynamic
Topic: Information Systems Technology