Open AccessAnalysis of supply chain management in ABC poultry using system dynamics approach
Author(s) -
J. W. Jufiardi,
Fajar Ayu Pinagara
Publication year - 2019
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/567/1/012034
Subject(s) - profitability index , business , dependency (uml) , supply chain , vertical integration , poultry farming , agricultural science , system dynamics , supply chain management , operations management , industrial organization , marketing , economics , computer science , biology , finance , ecology , software engineering
This study discusses supply chain management to produce broilers in ABC Poultry using System Dynamics approach. Small poultry farm in Indonesia must make a decision to sustain itself in the midst of needs to increase its capacity and facing issue with dependency to day-old chick producers. The purpose of this study is to analyse the supply chain management to increase profitability of the poultry in between two options of decision, buying the day-old chicks from third-party supplier or doing vertical integration to produce its own day-old chicks. This study found that doing vertical integration is the best option for the poultry because it can increase the profitability of the poultry and reduce the sensitivity of day-old chick price to the poultry.