A Buffer Stocks Model for Stabilizing Price in Duopoly-Like Market  

Oleh:

Sutopo, Wahyudi ; Bahagia, Senator Nur ; Cakravastia, Andi ; Samadhi, TMA. Ari

Jenis: Article from Proceeding
Dalam koleksi: APCOMS 2009: The 2nd Asia-Pacific Conference on Manufacturing System: Reconfigurable Manufacturing System for Facing Turbulent Manufacturing Environment, November 4th-5th, 2009, Yogyakarta, Indonesia, page IV.9-16.
Topik: Buffer-Stocks; Duopoly-Like Market; Market-Intervention Program; Model Market With Inventory; Staple-Food Distribution System
Fulltext: APCOMS G4-2.pdf (208.76KB)

Isi artikel

This paper presents the staple-food distribution problem in agro-industry. There is a great difference of staple-food supplies in the harvest-season and in the planting-season meanwhile the demand is relatively constant. This situation will trigger price-volatility and shortage of staple-food, and it causes opportunitylosses for the stakeholders (producer, consumer, wholesaler/trader, and the government). For stabilizing the price, the government has several stabilization policies; one of them is market-intervention policy by using buffer-stocks schemes. The market-intervention policy should be utilized for improving producer’s profit, for cutting consumer’s expenditure, and for sustaining wholesaler’s margin-profit by implementing price-support and price-stabilization. In duopoly-like market, we assume that there are only two market-players in the distribution system. The objective of this research is to determine the instruments for operating Market- Intervention Program which consist of the quantity, time, and price of the buffer-stocks schemes. The problem was solved using 3 approaches. First, a comparative cost/benefit analysis between free-market and intervention-market can be used to formulate the objective function of each stakeholders. Second, the integration of optimization model and econometrics model were use to develop the decision-variables subject to the expectation of stakeholders, the buffer-stocks requirement, and the dynamics price equilibrium properties. Third, model market with Inventory was applied for solving the market-price equilibrium. The result could be used to analyze such the staple-food distribution system, incorporating the configuration of duo-producers, duo market-buyers, and duo-consumers.

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