Purpose: The role of speculators in distributing products across rural areas is increasing the poverty rate in Indonesia. Therefore, this study aims to develop a conceptual framework of the rural logistics system model to influence the welfare and sustainability of farmers.Design/methodology/approach: Conceptual framework was used to evaluate logistics and supply chain networks. The method consists of developing stages based on four components, namely network structure, management, resources, and business processes. Furthermore, it also proposed the management function of the rural logistics system models.Findings: The model of a rural logistics system obtained in this study consists of 1) a trade related to the network of business, 2) a freight, related to the flow of goods, and 3) management functions related to crucial activities in rural logistics management.Research limitations/implications: This model is conceptual, therefore, future studies must accommodate optimizing models to predict the performance of rural logistics systems when they are applied in Indonesia.Practical implications: This study promotes the actors in intermediaries of the rural logistics system to synergize the distribution of goods effectively and efficiently. It also reduces the role of speculators in product distribution in form of availability and price in rural areas.Social implications: This model is a strategy to achieve the Rural Sustainable development Goals (Rural-SDGs) agenda and complements the Blueprint of The National Logistics System.Originality/value: There are fewer studies in rural logistics compared to other fields such as agricultural logistics, food logistics, disaster logistics, etc. Therefore, this study organizes the actors in the rural logistics network and plans management functions for the efficient distribution of products across Indonesia. It also raises the awareness of logistics management to improve the welfare of rural communities.
A company that engaged in the chemical industry and produces urea and ammonia,needs an arrangement on the distribution chain to suppress the possibility of stock out. An inventory on Disaster Centre is arrange in order to meet the demand of retailers. The determination of distribution routes that can reduce waste in terms of the use of transportation facilities as to minimize the time, and distance is analized by Distribution requirement planning method. Using the selected forecasting function based on the time series method, the total demand for the next 12 months is obtained, by calculating by applying the distribution requirement planning method, an total request cannot be fulfilled decrease by 67.38% from 417 orders to 136 orders.
The agricultural distribution problem of Rural Logistics System is addressed in this paper to improve farmers’ income by minimizing annual total cost. The system consists of three entities: (i) logistics terminal, (ii) distribution warehouses, and (iii) industries. The logistics terminal collects agricultural products from farmers’ crops, which are stored in distribution warehouses, which are further distribution based on demand of industries. This study developed non-linear mix integer programming model to minimize the annual total costs by incorporating (i) the approach of coordinated planning system, (ii) concept of echelon stock, (iii) single time cycle policy and (iv) transportation route. Many constraints were developed using various criteria. Feasible solution to the mathematical model was obtained by using heuristics method by Clarke and Wright.
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