Regional Food Hubs For Distribution of Regional Food Logistics (Case Study on the Establishment of a Food Distribution Center in Banten Province, Indonesia)

Abstract

Agriculture has a strategic role in sustaining the economy of a region, especially in improving food security and production of agricultural products. Food Hubs plays the role of building a food system that is capable of aggregating, distributing and connecting farmers with consumers directly. This requires the role and management of effective distribution methods by integrating the roles of farmers and consumers in a distribution center. The Distribution Center (DC) is managed by a Regional-Owned Enterprise (BUMD) that assists farmers in producing, selling and distributing food. Distribution Centers are able to overcome the problem of stock scarcity, price disparity, and price fluctuations in goods - especially staples. The Food hubs are supported by the determination of the number of warehouses, warehouse locations, and warehousing standards for the management of food staple inventory warehouses. Besides determining the level of inventory of safe food staples (buffer stock) is based on the main parameters: lead time and demand requirements. Food Hubs Operations embody the role of farmers, traders, in supporting the activities of distribution centers managed by Regional owned enterprises. Food hubs interactions involve institutions that play a role in sustaining these activities.