Modeling of Salt Supply Chains to Achieve Competitive Salt Prices

Muhandhis, Isnaini and Wirjodirdjo, Budisantoso and Suryanic, Erma and Susanto, Heri and Asfari, Ully (2021) Modeling of Salt Supply Chains to Achieve Competitive Salt Prices. International Journal on Food System Dynamics, 12 (1): 17. pp. 51-67. ISSN 1869-6945

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Abstract

To achieve the self-sufficiency of salt, prices need to be considered. This study develops a dynamic simulation model of salt supply chains to analyze the significant factors affecting prices from upstream to Indonesia’s downstream levels. A set of dynamic simulation models is developed to achieve competitive prices using system dynamics. Furthermore, the system dynamics framework is utilized because it can model non-linear behavior between variables with a significant contribution to the system. Based on the simulation results, local and imported salt prices may compete by implementing land integration systems. This system is likely to reduce production costs and increase farmers’ revenues to IDR 61,211,892 at the end of the simulation in 2035.

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