Cost Structure and Information Asymmetry Analysis in the Sugarcane Cultivation Supply Chain in Jember Regency, East Java

Logistically, the sugarcane supply and processing chain up to the raw sugar stage is driven by biophysical push factors rather than market-related pull factors. Sugarcane systems do not align fully with lean and agile supply chain thinking. This paper synthesizes a range of issues governing the sugarcane supply and processing chain. This synthesis was achieved through scientometrical analyses of a worldwide collection of publications. The aim was to develop a conceptual sugarcane supply chain framework and to evaluate research trends, knowledge gaps and limitations. Key system properties were identified from the literature and co-word analyses were carried out. Several exploratory exercises were executed on the co-occurrence matrix using the PAJEK software. The literature generally focuses on material handling issues in isolation from other factors, such as collaboration, information sharing and innovation. Impacts of harvesting on downstream processes remain a pertinent research topic. Also, emerging alternative products impose new complexities on the supply chain. Conflicting grower–miller relationships still suppress collaboration in most parts of the world. Mathematical modelling is a popular technique to produce innovative system improvements. Models, however, tend towards finding long-term solutions and lack the development of operational short-term applications. Production risk is an area that needs more focus. Researchers need to consider the supply chain more holistically, not only with respect to different dimensions in the chain (such as profitability, innovation, information and collaboration), but also within the local commercial socioeconomic regime.

East Java is the province with the largest sugar production in Indonesia, supported by a large sugarcane plantation area to meet the needs of sugar mills. However, the latest data shows that there is a gap between the sugarcane supply and demand. This study aims to determine the distribution map of sugarcane against sugar mills demand and the optimal sugarcane allocation for sugar mills in East Java. The spatial distribution of sugarcane production and sugar mills demand was built using QGIS 3.34.4 while the optimization of sugarcane allocation using the transportation method approach was done by using OpenSolver in the Microsoft Excel platform. The results show that there are sugarcane plantations spread across 424 sub-districts and 29 sugar mills. The total demand by sugar mills is larger than the total sugarcane production, with the difference of 4,375,804 tons. Therefore, there are two proposed scenarios. First, finding the optimal solution using dummy. Second, calculating optimal solutions by adjusting the demand of sugar mills proportionally to the difference between demand and sugarcane supply. The first scenario produces a total transportation cost of Rp 747,275,819,472, - with 9 sugar mills getting supplies from the dummy. The second optimization scenario produces a total transportation cost of Rp 842,750,679,416. The managerial implications derived from this study can guide policymakers in making more informed decisions regarding procurement strategies, local supply regulations, and cost management.

Red chili (Capsicum annum L.) is one type of horticultural commodity with a high level of consumption and production. Jember Regency is one of the regencies in East Java Province where the cultivation of large red chilies is quite high. The results of preliminary observations in the field indicate that several problems have occurred, such as an imbalance in the distribution of risk among supply chain actors. Farmers as the main actors in the supply chain have the highest risk of crop failure due to seasonal uncertainty. Supply chain analysis and evaluation will provide information about the problems contained in the supply chain, which will then identify the risks causing the supply chain to be less than optimal and determine the direction of continuous, effective, and efficient improvement in the supply chain of large red chilies. This study aims to minimize or eliminate the impact of risks that occur during large red chili supply chain activities in the Ambulu District. This research was conducted by applying the SCOR model for supply chain activity mapping and the House Of Risk (HOR) model for supply chain risk management. The identification results show that large red chili supply chain activities in Ambulu District have four activity patterns, then there are 28 risk events and 24 risk agents that occur in large red chili supply chain activities. Based on the calculation results, the results are in the form of seven risk management strategies in the large red chili supply chain which consist of conducting routine evaluations, choosing the right pesticides, collaborating with the local government, conducting routine treatment on plants, training workers, farming management, and counseling on the selection of the right seeds to farmers.

Abstract: Sugarcane holds importance as a cash crop with the sugar industry playing a crucial role, in various economies globally. It is essential to manage the supply chain to ensure a flow of sugarcane from farms to sugar mills and ultimately to consumers. This review paper explores key challenges to manage sugarcane supply chain in the field of seasonal variability, quality control, procurement and pricing, logistics and transportation, sustainability and environmental concerns, supply chain coordination and price fluctuations faced by the sugarcane supply chain Management, highlighting the complexities and obstacles that impact its efficiency and sustainability. The examination covers challenges related to sourcing, transportation, processing and distribution, within the supply chain. Furthermore, it explores solutions and strategies aimed at tackling these obstacles to enhance management of the sugarcane supply chain.

Mojogemi Village is one of the villages in Sukowono District, Jember Regency, East Java. Geographically, Mojogemi Village is very strategically located in the middle of Jember Regency. The population in Mojogemi Village is around 3,500 residents. When discussing with the Village Head and Mojogemi Village officials, Sukowono District, they encountered a number of problems regarding the wasteful use of electrical energy in the village that the people of Mojogemi Village, Sukowono District are currently facing. The problem in question is the lack of information regarding Energy Saving Education in Villages to Support National Energy Stability and Household Expenditure Stability in Mojogemi Village, Sukowono District, Jember Regency, East Java. To overcome this problem, an alternative solution that can be applied is for the author to discuss with village officials and suggest the use of alternatives to save electrical energy at this time to be able to overcome Energy Stability and Household Expenditure Stability in Mojogemi Village, Sukowono District, Jember Regency, East Java, so that Mojogemi Village can become a Villages that save energy, especially electrical energy, can stabilize energy and stabilize village household expenses and become environmentally friendly. Therefore, the aim of this community service is to see the potential for energy stability and household expenditure stability in the village in improving community welfare by saving electrical energy in Mojogemi Village, Sukowono District, Jember Regency, East Java. To obtain the data used were observation and literature study. This service activity is an educational effort to increase Energy Saving Education in Villages to Support National Energy Stability and Household Expenditure Stability in Mojogemi Village, Sukowono District, Jember Regency, East Java. As a manifestation of the author's thoughts, there are several efforts and breakthroughs offered, namely providing education on the use of energy saving to overcome the waste of electrical energy in Mojogemi Village, Sukowono District, Jember Regency, East Java so that it can support National Energy Stability and Household Expenditure Stability and become a solution for village communities. Mojogemi has its right as a citizen to obtain economical and environmentally friendly electrical energy. Keywords : Mojogemi Village, Electric Energy, Energy Saving

Conceptually resilience has been seen as the ability to dynamically reinvent business models and strategies at the same frequency as circumstances change, that is, a resource to continually anticipate and adapt to changes that threaten financial capacity or the core of business power. Taking into account the context of sugarcane and the concept of resilience it was established as the main objective of this research is to contribute to the understanding of how to recognize or identify a resilient supply chain. Therefore, the methodological approach was based on the construction of model of simulation of the sugarcane supply chain in Brazil, for the agricultural and industrial links. The concept of resilience in the sugarcane supply chain was empirically evaluated through the Resilience Triangle proposed by For this purpose, economic margins extracted from the constructed simulation model were used. A resilient supply chain definition that is compatible with Long-Term Identified Disturbing Events has been adapted and established. The relationship among resilience, capacity factors and vulnerability factors in the sugarcane supply chain in Brazil was analyzed. An experience curve has been created by sharing the specific cost reductions within the agricultural and industrial links, seeking to identify technological advances and characterize responsible learning. The results showed that the proposed method can identify the sugarcane supply chain resilience. The Progression Ratios, the most significant triggers, the strategies adopted and the results of the strategies were identified. Finally, the resilience sources, the changes in costs, and the identified margins were compared, creating a framework where three types of influence factors were added: technological, political and market. Each one of them was detailed and examined, creating a typology of factors capable of influencing the costs and margins of the sugarcane supply chain. The results also portray a cost reduction over time, with short-term effects for the chain. The work stands out for its innovation in the method of using resilience, as well as its unprecedent application in the sugarcane supply chain. That means, an expansion of knowledge in the model of a development capable of generating economic margins, due to certain technologies in an ethanol, sugar and bioenergy plant, as well as an extensive retrospective identification of all influences that may affect costs and margins. This contributes to a better understanding of the supply chain of sugarcane.

This paper is focused on the coordination of order and production policy between buyers and suppliers in supply chains. When a buyer and a supplier of an item work independently, the buyer will place orders based on his economic order quantity (EOQ). However, the buyer's EOQ may not lead to an optimal policy for the supplier. It can be shown that a cooperative batching policy can reduce total cost significantly. Should the buyer have the more powerful position to enforce his EOQ on the supplier, then no incentive exists for him to deviate from his EOQ in order to choose a cooperative batching policy. To provide an incentive to order in quantities suitable to the supplier, the supplier could offer a side payment. One critical assumption made throughout in the literature dealing with incentive schemes to influence buyer's ordering policy is that the supplier has complete information regarding buyer's cost structure. However, this assumption is far from realistic. As a consequence, the buyer has no incentive to report truthfully on his cost structure. Moreover there is an incentive to overstate the total relevant cost in order to obtain as high a side payment as possible. This paper provides a bargaining model with asymmetric information about the buyer's cost structure assuming that the buyer has the bargaining power to enforce his EOQ on the supplier in case of a break-down in negotiations. An algorithm for the determination of an optimal set of contracts which are specifically designed for different cost structures of the buyer, assumed by the supplier, is presented. This algorithm was implemented in a software application, that supports the supplier in determining the optimal set of contracts.

The sugar industry remains a priority for development in the Indonesian agricultural sector, especially in East Java. However, the performance of the sugar industry in East Java during the two last decades has declined, which is shown in the decreasing volume of production. This study utilized the analysis of transaction cost economics to identify the problems of the sugar mills in East Java – Indonesia. This research compares the transaction costs between state-owned (Ngadiredjo) and privately-owned (Kebon Agung) sugar mills. The study shows that in Kebon Agung Sugar Mill transaction costs are higher than production costs, while in Ngadiredjo Sugar Mill the reverse is true. However, the high transaction costs in Kebon Agung Sugar Mill cannot be attributed directly to inefficient institutions, because Ngadiredjo Sugar Mill incurred high costs for plants, land preparation, and fertilizer, which decreased the proportion of transaction costs. If analyzed in detail, the following facts are revealed: (i) market transaction costs in Kebon Agung Sugar Mill are higher than in Ngadiredjo Sugar Mill. This is because Kebon Agung Sugar Mill has established cooperation with sugarcane farmers in the form of extensions and transport subsidies; and (ii) the political transaction costs proportion in Ngadiredjo Sugar Mill is higher than in Kebon Agung Sugar Mill because of the imposition of many ‘illegal’ fees. There should be management (corporate) reform of sugar mills, both internal and external. Internally, sugar mill management must apply good corporate governance that guarantees the transparency and control of every activity. Nowadays, there is no controlling unit in sugar mill management that supervises corporate activity, so that it is susceptible to manipulation and mark-up. Externally, the relationship between sugar mill management (CEO) and the Board of Directors should be reformulated so that sugar mill management has wide authority to make corporate strategy decisions. Centralization of authority in holding firm (PTPN/PT. RNI) has caused high transaction costs as a result of the long hierarchy in decision-making.

The supply chain is a series of overall processes starting from the management, movement, storage and handling of raw materials, inventory of semi-finished goods, which ends with satisfied customers. Researchers use the R-A theory (Resource-Advantage Theory) to explain internal factors and the role of company performance. Researchers use quantitative research with survey methods with data collection techniques, namely questionnaires. The level of potential for the development of MSMEs in Jember Regency is large and continues to increase based on data from the Central Statistics Agency (BPS) Jember Regency also has the largest number of MSMEs in East Java with a total of 647,416. In addition, the market coverage it has is already extensive to various cities and provinces. This is supported by data obtained from media such as Jember radar, detik.com, Tv One, and Kompas Tv. Seeing from these data, its distribution and marketing in Mayang District are areas with the highest production compared to other areas. The population in this study were all Mayang Peanut Cake MSMEs as many as 31 Mayang Peanut Cake MSME business actors in Jember Regency. The results of this study used multiple linear regression analysis by conducting a t-test (partial) and f-test (simultaneous). The results of the analysis indicate that partially the three variables in this study, namely the halal supply chain, HR quality, marketing have a positive and significant influence on production performance. Simultaneously, the three independent variables in this study have a positive and significant influence on the performance of MSME food production.

Modelling sugarcane supply consistency at a sugar mill

This presentation is a review of basic estimation methods geared for assessment of service benefit and cost structure of employee assistance programs (EAPs). The methodologies specify how various benefit and cost items can be organized and measured in dollar figures in order to translate effects of the EAP and operating cost distribution patterns. Based on the calculations, EAPs may assess cost saving patterns and avoid becoming a financial liability to the company. The estimation of benefit/cost ratios can be utilized for establishing program accountability and planning purposes. The methodologies presented in this chapter are at an introductory level. They are geared for EAP personnel and social work students interested in EAPs who have minimal familiarity with cost and benefit structure analysis.

This research focuses on business feasibility analysis for Estona Coffee MSMEs in Jember Regency, East Java. This research contains a profile of MSMEs and several aspects therein such as licensing aspects, production technical aspects, marketing aspects, management aspects and financial aspects. Not only that, this research also examines the economic, social and environmental aspects of Estona Coffee MSMEs in Jember Regency, East Java. This research uses qualitative methods through interviews where the interviews focus on the owners of Estona Coffee MSMEs located in Jember Regency, East Java. This research produces analytical responses regarding the business feasibility of Estona Coffee MSMEs in Jember Regency, East Java.

The fastest route search is a problem to find routes having a relatively small or empty number of congestion or density so that the required travel time is faster to get to a location. One of them is the route to the tourist attraction in Jember regency, East Java has many relatively solid lines. Some researchers have done a lot of research on finding the shortest path using Ant Colony System (ACS) method. However, the ACS method has a weakness, where more ants pass through a path, the clearer the footprint but the volume of ants passing through the path is also longer. Therefore in this research use ant adaptive on ACS method to find the fastest path to the tourist location in Jember Regency. Due to the increasing number of densities, it takes longer to get to the food source. In this study, ant adaptive for ACS method is used to determine the optimal number of ants in searching for the fastest path to the tourist attraction in Jember District, East Java. Various trials are done to prevent the search process of resolving the already traced solution space to find the fastest path. The fastest path does not have to have the shortest path but has the fastest time with the paths having relatively little or no density at all. The results showed that ant adaptive for ACS method developed in this research is able to find the optimal number of ants in determining the fastest paths to the tourist object so that the search result of the fastest route of tourist attraction in Jember Regency in accordance with the reality of the passable path and has a density relatively small or almost nonexistent. The success rate was conducted on 8 tourist objects in Jember with 98 paths tested using road data in Jember regency, East Java with the fastest path solution influenced by the closer to the optimum distance, the more number of ants influenced.

This research focuses on business feasibility analysis for Estona Coffee MSMEs in Jember Regency, East Java. This research contains a profile of MSMEs and several aspects therein such as licensing aspects, production technical aspects, marketing aspects, management aspects and financial aspects. Not only that, this research also examines the economic, social and environmental aspects of Estona Coffee MSMEs in Jember Regency, East Java. This research uses qualitative methods through interviews where the interviews focus on the owners of Estona Coffee MSMEs located in Jember Regency, East Java. This research produces analytical responses regarding the business feasibility of Estona Coffee MSMEs in Jember Regency, East Java.

Jember Regency is the second largest producer of citrus in East Java Province with a production of 131,855 tons or 27.45% of the total citrus production. Siamese orange production continues to increase, from 852,359 in 2011 to 1,370,422 in 2015. In 2016, the production of siamese oranges was the largest production compared to other types of fruit in Jember Regency, which amounted to 1,348,767 tons of 4,222,455 tons of fruit crop production in Jember Regency (BPS Jember Regency, 2017). In terms of sales, these siam oranges are not only in the local market and the nearest inter-regional market but have also been marketed outside the city such as Yogyakarta, Jakarta, Semarang, Surabaya and Bali (pertanian.jatimprov.go.id). In order to improve and optimize the agricultural land of citrus plants and to find out the marketing of citrus fruit in Jember Regency, a fuzzy logic model was developed as an artificial intelligent base that can not only visualize the distribution of citrus agricultural land but also can provide an overview of citrus fruit marketing data in Jember Regency so that later it can be used as a basis for decision making by interested parties in Jember Regency, especially those related to citrus fruit. This research aims to apply fuzzy logic models as artificial intelligence about the value and parameters of land data and citrus fruit marketing in Jember Regency so that the model can be applied to a web-based geographic information system application of land mapping and citrus marketing that can help farmers and related agencies in Jember Regency.