Abstract
Milkfish is an aquaculture product and has a role in supporting food security and nutrition in Indonesia. The reliability of milkfish farming will be able to increase the income of small and medium-scale farmers. Milkfish farmers in SMEs level experience problem of declining prices in the period of oversupply in farming. Moreover, the profit earning by the farmers tend to decrease time to time. This research was mapping the structure of milkfish downstream supply chain using system dynamic simulation. The first step in mapping process was identifying the actors in the milkfish downstream supply chain. The next stage was defining activities and variables that affect supply chain milkfish profit. The activities and variables were used to develop a causal loop diagram (CLD). Furthermore, stock and flow diagram was constructed based on CLD and used as system dynamic simulator of milkfish supply chain. The result of system dynamic simulation showed the profit obtained by each actor in milkfish supply chain and a total profit of the entire supply chain. The profit, gained by supply chain in the current configuration, during the period 2016-2020, is Rp72.615.608.004,00. According to the simulation result, the proposed scenario will be able to increase the profit of supply chain up to 27,58%.
Highlights
Indonesia is a country that has a great maritime potential
System dynamics was enabled the study of the conflicting in supply chain of Banana and the effect of actions to overcome the lack of coordination (Arvitrida et al, 2008)
In addition to farming process problem, the problems of milkfish aquaculture include the number of production, distribution and range of market, unstable price, and other problems triggered by poor management of SMEs and coordination of the supply chain
Summary
Indonesia is a country that has a great maritime potential. With existing geographical circumtances, Indonesia has a great potential for marine industry. The supply chain coordination and collaboration is a strategy to improve the productivity of fisheries industry. The impact of independent plans and operations in the supply chain is the acquisition profit in only few parties, and higher risk in other parties It is one of factors caused stagnant and less competitive fisheries sector in Indonesia. System dynamics was enabled the study of the conflicting in supply chain of Banana and the effect of actions to overcome the lack of coordination (Arvitrida et al, 2008) This study developes both models to elucidate the behaviour of profit in fisheries. The object of supply chain design of Indonesia’s fisheries sector in this study is milkfish industry.
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