Abstract:
Staple food that is produced by agro industry has salient supply disparity during the harvest and planting season. This situation could cause both staple food scarcity an...Show MoreMetadata
Abstract:
Staple food that is produced by agro industry has salient supply disparity during the harvest and planting season. This situation could cause both staple food scarcity and price fluctuation. An indirect market intervention model is proposed to mitigate producer's revenue loss when selling price plunges and to secure consumer's need when staple food is scarce. The model uses buffer stock scheme in accordance with warehouse receipt system (WRS) and collateral management system. By using WRS, producer can pawn some of their staple food to the warehouse management and obtain receipt, then give the receipt to the Financial Institutions to access loan. Next, they can redeem their pawn and sell them under profitable price. Mixed-integer nonlinear programming (MINLP) approach has been used to determine the decision variables for producer and government. The result shows that the model can be used to solve problem.
Published in: 2011 IEEE International Conference on Industrial Engineering and Engineering Management
Date of Conference: 06-09 December 2011
Date Added to IEEE Xplore: 29 December 2011
ISBN Information: