Abstract

The purpose of the study was to analyze the sustainability of supply of free-range meat chicken in Pasuruan Regency, Indonesia and to obtain an optimization model of selling price and transportation costs of the free-range meat chicken. Artificial neural networks was used to analyse the sustainability of free-range meat chicken supply while linear programming was used to optimize the selling price. In addition, Vogel’s approximation was used to obtain the minimum total cost of transportation. The outcome of the analysis showed that the availability of free-range meat chicken in 2022 was estimated around 40, 016.67 tons with a selling price of IDR 28,100/kg. The minimum overall transportation cost was IDR 3,807,000/quintal.

Highlights

  • Broiler business in Indonesia are good prospects

  • The purpose of the study was to analyze the sustainability of supply of free-range meat chicken in Pasuruan Regency and to obtain an optimization model of selling price and transportation costs

  • Data collection was carried out on fifty respondents consisting of thirty farmers, five collectors, and fifiteen small and medium enterprise (SME) free-range meat chicken producer

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Summary

Introduction

Broiler business in Indonesia are good prospects. This condition is shown by many opening of new restaurants and supermarkets, increasing population, increasing public awareness of nutritional fulfillment, increasing community needs at certain times such as birthday parties, wedding parties, the tendency of selling prices high at certain times such as the fasting month, Eid al-Fitr, Christmas and others. Increased public interest in running a business of free-range broiler is very influential in increasing community activities (Amenuri and Soekarno, 2010). The success of the management of a broiler is closely related to technical production, management and marketing (Rasyaf, 2002). These three things are very closely related to the supply chain. Borade and Bansod (2008) stated that the supply chain is a network of facilities and distribution channels which includes the procurement of raw materials, production, management and marketing

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