Model For Measurement Of Supreme Micro And Medium Enterprises Agro -Industry Supply Chaining Chain In North Sumatra Province

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Model for Measurement of Sustainable Agro-Industry Supply Chain in North Sumatra Province

Introduction

The sustainable supply chain in agro-industry is a crucial aspect of economic development, particularly in regions with abundant natural resources. In North Sumatra Province, the passion fruit agro-industry is a significant contributor to the local economy, providing employment opportunities and generating revenue. However, the sustainability of this industry is threatened by various factors, including environmental degradation, social inequality, and economic instability. This study aims to identify the key factors affecting the performance of passion fruit agro-industry supply chains and design a performance measurement model for micro, small, and medium enterprises (MSMEs) based on dynamic systems.

Research Methods

This study employed a survey method that included observation, in-depth interviews, and expert opinions in the field of agro-industry. The data analysis process combined the hard system and soft system approach. The hard system approach focused on dynamic system analysis, while the soft system approach was based on expert opinion. The feedback structure along the agro-industry system of passion fruit syrup was modeled in the form of a causal loop diagram using Powersim Studio software version 10. This diagram was then translated into stock-flow diagrams that functioned as the implementation of the simulation model. The model was verified using the absolute means error (AME) technique to ensure the accuracy of the results.

Identification of Variables and Development Scenarios

The results of the study identified seven key variables that had a significant effect on the performance of the passion fruit agro-industry supply chain. These variables were obtained through the assessment of experts and weighted using the Analytical Hierarchy Process (AHP). The results showed that these variables had the highest weight compared to 16 other variables. The seven key variables were:

  1. Availability of raw materials: The availability of raw materials is a critical factor in the performance of the passion fruit agro-industry supply chain.
  2. Quality of raw materials: The quality of raw materials is essential in ensuring the quality of the final product.
  3. Supply chain efficiency: The efficiency of the supply chain is critical in reducing costs and improving delivery times.
  4. Market demand: Market demand is a key driver of the passion fruit agro-industry supply chain.
  5. Government policies: Government policies can have a significant impact on the performance of the passion fruit agro-industry supply chain.
  6. Environmental sustainability: Environmental sustainability is critical in ensuring the long-term viability of the passion fruit agro-industry supply chain.
  7. Social responsibility: Social responsibility is essential in ensuring that the passion fruit agro-industry supply chain is fair and equitable.

Development Scenarios

Based on the seven key variables, the study designed a development scenario for sustainable MSMEs in the passion fruit agro-industry. The simulation results showed that the behavior of the passion fruit agro-industry supply chain model showed positive growth with an error rate of 7.43%. The results of the study suggest that the development scenario can be implemented to achieve sustainable growth in the passion fruit agro-industry supply chain.

Strategic Recommendations

To achieve sustainable growth in the passion fruit agro-industry supply chain, the following strategic recommendations are proposed:

  1. Development of good relations: Building a strong pattern of relationships between all actors in the supply chain is essential in creating effective collaboration.
  2. Availability of raw materials: Increasing the availability of raw materials gradually is critical in maintaining supply.
  3. Quality of raw materials: Ensuring the quality of raw materials is essential in ensuring the quality of the final product.
  4. Supply chain efficiency: Improving the efficiency of the supply chain is critical in reducing costs and improving delivery times.
  5. Market demand: Understanding market demand is essential in ensuring that the passion fruit agro-industry supply chain meets the needs of customers.
  6. Government policies: Encouraging government policies that support the passion fruit agro-industry supply chain is critical in ensuring its long-term viability.
  7. Environmental sustainability: Ensuring environmental sustainability is critical in ensuring the long-term viability of the passion fruit agro-industry supply chain.
  8. Social responsibility: Ensuring social responsibility is essential in ensuring that the passion fruit agro-industry supply chain is fair and equitable.

Conclusion

The study aimed to identify the key factors affecting the performance of passion fruit agro-industry supply chains and design a performance measurement model for MSMEs based on dynamic systems. The results of the study identified seven key variables that had a significant effect on the performance of the passion fruit agro-industry supply chain. The study also designed a development scenario for sustainable MSMEs in the passion fruit agro-industry. The results of the study suggest that the development scenario can be implemented to achieve sustainable growth in the passion fruit agro-industry supply chain. The strategic recommendations proposed in this study can be implemented to achieve sustainable growth in the passion fruit agro-industry supply chain.

Limitations of the Study

This study has several limitations. Firstly, the study was conducted in a specific region, North Sumatra Province, and may not be generalizable to other regions. Secondly, the study relied on expert opinions and may not be representative of all stakeholders in the passion fruit agro-industry supply chain. Finally, the study used a simulation model to predict the behavior of the passion fruit agro-industry supply chain, which may not accurately reflect real-world conditions.

Future Research Directions

Future research directions include:

  1. Conducting a larger-scale study: Conducting a larger-scale study that includes multiple regions and stakeholders can provide a more comprehensive understanding of the passion fruit agro-industry supply chain.
  2. Using more advanced simulation models: Using more advanced simulation models, such as agent-based models, can provide a more detailed understanding of the passion fruit agro-industry supply chain.
  3. Incorporating more variables: Incorporating more variables, such as climate change and technological advancements, can provide a more comprehensive understanding of the passion fruit agro-industry supply chain.

References

  1. AHP (Analytical Hierarchy Process): AHP is a decision-making method that uses a hierarchical structure to evaluate complex problems.
  2. Powersim Studio: Powersim Studio is a software tool used for building and analyzing simulation models.
  3. Stock-flow diagrams: Stock-flow diagrams are a type of diagram used to represent the flow of materials and information in a system.
  4. Causal loop diagrams: Causal loop diagrams are a type of diagram used to represent the causal relationships between variables in a system.

Appendix

The appendix includes the detailed results of the study, including the simulation results and the development scenario.
Q&A: Model for Measurement of Sustainable Agro-Industry Supply Chain in North Sumatra Province

Introduction

The sustainable supply chain in agro-industry is a crucial aspect of economic development, particularly in regions with abundant natural resources. In North Sumatra Province, the passion fruit agro-industry is a significant contributor to the local economy, providing employment opportunities and generating revenue. However, the sustainability of this industry is threatened by various factors, including environmental degradation, social inequality, and economic instability. This Q&A article aims to provide answers to common questions related to the model for measurement of sustainable agro-industry supply chain in North Sumatra Province.

Q: What is the main objective of the study?

A: The main objective of the study is to identify the key factors affecting the performance of passion fruit agro-industry supply chains and design a performance measurement model for micro, small, and medium enterprises (MSMEs) based on dynamic systems.

Q: What methods were used in the study?

A: The study employed a survey method that included observation, in-depth interviews, and expert opinions in the field of agro-industry. The data analysis process combined the hard system and soft system approach.

Q: What are the key variables that affect the performance of the passion fruit agro-industry supply chain?

A: The study identified seven key variables that had a significant effect on the performance of the passion fruit agro-industry supply chain. These variables are:

  1. Availability of raw materials: The availability of raw materials is a critical factor in the performance of the passion fruit agro-industry supply chain.
  2. Quality of raw materials: The quality of raw materials is essential in ensuring the quality of the final product.
  3. Supply chain efficiency: The efficiency of the supply chain is critical in reducing costs and improving delivery times.
  4. Market demand: Market demand is a key driver of the passion fruit agro-industry supply chain.
  5. Government policies: Government policies can have a significant impact on the performance of the passion fruit agro-industry supply chain.
  6. Environmental sustainability: Environmental sustainability is critical in ensuring the long-term viability of the passion fruit agro-industry supply chain.
  7. Social responsibility: Social responsibility is essential in ensuring that the passion fruit agro-industry supply chain is fair and equitable.

Q: What is the development scenario for sustainable MSMEs in the passion fruit agro-industry?

A: The study designed a development scenario for sustainable MSMEs in the passion fruit agro-industry based on the seven key variables. The simulation results showed that the behavior of the passion fruit agro-industry supply chain model showed positive growth with an error rate of 7.43%.

Q: What are the strategic recommendations for achieving sustainable growth in the passion fruit agro-industry supply chain?

A: The study proposed the following strategic recommendations for achieving sustainable growth in the passion fruit agro-industry supply chain:

  1. Development of good relations: Building a strong pattern of relationships between all actors in the supply chain is essential in creating effective collaboration.
  2. Availability of raw materials: Increasing the availability of raw materials gradually is critical in maintaining supply.
  3. Quality of raw materials: Ensuring the quality of raw materials is essential in ensuring the quality of the final product.
  4. Supply chain efficiency: Improving the efficiency of the supply chain is critical in reducing costs and improving delivery times.
  5. Market demand: Understanding market demand is essential in ensuring that the passion fruit agro-industry supply chain meets the needs of customers.
  6. Government policies: Encouraging government policies that support the passion fruit agro-industry supply chain is critical in ensuring its long-term viability.
  7. Environmental sustainability: Ensuring environmental sustainability is critical in ensuring the long-term viability of the passion fruit agro-industry supply chain.
  8. Social responsibility: Ensuring social responsibility is essential in ensuring that the passion fruit agro-industry supply chain is fair and equitable.

Q: What are the limitations of the study?

A: The study has several limitations, including:

  1. Limited scope: The study was conducted in a specific region, North Sumatra Province, and may not be generalizable to other regions.
  2. Limited sample size: The study relied on expert opinions and may not be representative of all stakeholders in the passion fruit agro-industry supply chain.
  3. Simulation model limitations: The study used a simulation model to predict the behavior of the passion fruit agro-industry supply chain, which may not accurately reflect real-world conditions.

Q: What are the future research directions?

A: Future research directions include:

  1. Conducting a larger-scale study: Conducting a larger-scale study that includes multiple regions and stakeholders can provide a more comprehensive understanding of the passion fruit agro-industry supply chain.
  2. Using more advanced simulation models: Using more advanced simulation models, such as agent-based models, can provide a more detailed understanding of the passion fruit agro-industry supply chain.
  3. Incorporating more variables: Incorporating more variables, such as climate change and technological advancements, can provide a more comprehensive understanding of the passion fruit agro-industry supply chain.

Conclusion

The Q&A article provides answers to common questions related to the model for measurement of sustainable agro-industry supply chain in North Sumatra Province. The study identified seven key variables that affect the performance of the passion fruit agro-industry supply chain and designed a development scenario for sustainable MSMEs in the passion fruit agro-industry. The study also proposed strategic recommendations for achieving sustainable growth in the passion fruit agro-industry supply chain.