Abstract

Aims: Analyze the economic efficiency of production and describe the supply chain scheme for the fattening sheep business in Sei Bingai District, Langkat Regency.
 Study Design: This type of research is quantitative descriptive research.
 Place and Duration of Study: The research was conducted from November 2022-January 2023 in Sei Bingai District, Langkat Regency.
 Methodology: Data collection techniques include several techniques, namely using questionnaires through Focus Group Discussions (FGD), in-depth interviews with respondents, document analysis, informal discussions, and direct observation. The data analysis method used is Economic Efficiency Analysis and System Supply Chain.
 Results: The results showed that 1) The marketing of fattening sheep in Sei Bingai District, Langkat Regency, has been efficient. This is proven by the results of efficiency calculations which show the efficiency of the three supply chain schemes is below 50%. Compared to the other two channels, scheme two is said to be the most efficient because the efficiency value is only 13.2%. In comparison, the highest efficiency value is in scheme three, followed by the first channel scheme. 2) The supply chain scheme for fattening sheep in Sei Bingai District, Langkat Regency, consists of producer breeders, agents, regional market intermediaries, and consumers.
 Conclusion: Improvements in performance indicators provide good performance results for the sheep-fattening supply chain. Efforts to improve the indicators of order fulfillment and compliance with standards are carried out by having good cooperation with suppliers. Companies must be more involved in handling the quality and quantity of fattening sheep.

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