Decision Making in Inventory Policy Determination for Each Echelon to Stabilize Capsicum Frutescens Price and Increase Farmers Share Value Using Discrete Event Simulation

Abstract

Capsicum frutescens is one of the vegetable commodities that can affect the dynamics of the national economy. The dynamics of the national economy is due to significant fluctuations in chili prices in Indonesia at all times. Price fluctuations occur due to lack of information either in the form of demand information or Chilean price information about consumers received by farmers for marketing red pepper. Besides, the length of the distribution of red pepper (farmer- the middleman- wholesaler- retailer- consumer) results in significant price changes from farmers to consumers at each echelon or distribution level. Such price changes result in a decline in the farmer’s share. Farmer’s share has a negative relationship with marketing margins. the negative relationship is the higher the marketing margin, the lower the share received by the farmer. from the explanation, the concept shows that the victims of the length of the distribution channel are farmers and consumers. Where farmers will bear a high business risk, and consumers will get high chili prices. The research will discuss how to stabilize the price of red pepper and improve farmer’s share by making the best decision using discrete simulation using Monte Carlo, so it can determine the supply policy by the distribution at each level aimed at reducing the operational cost. Besides, this can also reduce the hoarding activities undertaken by the relevant distribution. The hoarding can disrupt the stability of the existing chili price.

Development of Automatic Real Time Inventory Monitoring System using RFID Technology in Warehouse

“…Inventory management is an important element in making all decisions in a company to give the excellent treatment for inventory items, such as activities to be carried out, inventory management policies, and procedures to handle the inventory to guarantee the quantity of each item when stored in the warehouse all the time [6]. Inventory management is controlling and monitoring inventory levels and assuring sufficient replenishment to meet customer demand.…”

Strategic Food Risks – Chili’s Agrosystem Perspective

“…Chili producers (farmers/groups of farmers) must consider the state of supply and demand in planning their production (Sukmawati and Dasipah, 2020;Putri et al 2020). The supply chain operators involved in the distribution play an imperative practice in the chilli agrosystem's effectiveness (Novitasari and Setyawan, 2019;Indriani et al 2020). Chili is at high risk differentiated by a drastic price increase if there is a chilli shortage (Hidayat, 2017;Sitthisuntikul et al 2018;Mariyono, 2018;Karyani et al 2020).…”

“…The efficient supply chain model is achieved by optimizing the existing institution (Barusman et al 2019). In the meantime, price stabilization requires a determination of supply policy, which is the distribution at each supply chain level (Novitasari and Setyawan, 2019). In adition, data capturing along the supply chain can use hyper ledger blockchain (Putri et al 2020), even though this is a new technology.…”

Prediksi Volatilitas Harga Jual Produk Pada E-Commerce untuk Independent Stockashtic Data Menggunakan Simulasi Monte Carlo

“…Volatilitas merupakan pergerakan indeks harga pada setiap satuan waktu. Dikutip dari penelitian yang dilakukan oleh Novitasati dan Setyawan tahun 2019, volatilitas merupakan perubahan suatu nilai konstanta pada suatu satuan waktu tertentu dari sebuah indeks harga jual dan selalu dievaluasi menggunakan suatu satuan waktu tertentu [8]. Cara untuk melakukan pengukuran volatilitas adalah dengan melakukan perhitungan standar deviasi dari perubahan nilai konstanta tersebut.…”