An Agri-Food Supply Chain Model to Enhance the Business Skills of Small-Scale Farmers Using Corporate Social Responsibility

Authors

Wahyudi Sutopo, Laboratory of Logistics and Business System, Department of Industrial Engineering, Faculty of Engineering, Sebelas Maret University, Surakarta 57126, IndonesiaFollow
Muh. Hisjam, Laboratory of Logistics and Business System, Department of Industrial Engineering, Faculty of Engineering, Sebelas Maret University, Surakarta 57126, Indonesia
Yuniaristanto Yuniaristanto, Laboratory of Logistics and Business System, Department of Industrial Engineering, Faculty of Engineering, Sebelas Maret University, Surakarta 57126, Indonesia

Abstract

In general, small-scale vegetable farmers experience problems in improving the safety and quality of vegetables for supplying high-class consumers in modern retailers. Farmer Group and/or Cooperative (FGC) should be able to assist its members to meet the relevant provisions of modern retail on product specifications, delivery terms, and internal business requirements. This study proposed an agri-food supply chain (ASC) model that involves the corporate social responsibility (CSR) activities to enhance the business skills of the FGC as supplier of modern retailer. Multi-objective optimization programming is developed to determine the amount and timing of supply, level of farmers training skills, quality improvement target, and the CSR total cost. The results show that the proposed model can be used to determine the priority of programs in order to empower farmers' groups as modern retail suppliers.

Bahasa Abstract

Model Agri-food Supply Chain untuk Memperkuat Kemampuan Bisnis Kelompok Tani dengan Menggunakan Aktivitas Tanggung Jawab Sosial Perusahaan. Kebanyakan petani sayur mayur mengalami masalah dalam memperbaiki keamanan dan kualitas sayur-mayur untuk dipasarkan ke konsumen kelas menengah-atas di pasar modern. Koperasi dan/atau Kelompok Tani (KKT) seharusnya dapat membantu anggotanya dengan memasarkan secara langsung ke perusahaan ritel modern. Penelitian ini ditujukan untuk mengembangkan model agri-food supply chain (ASC) yang melibatkan aktivitas tanggung jawab sosial perusahaan (TJSP) untuk memberdayakan KKT sebagai pemasok pada ritel modern. Aktivitas TJSP dikembangkan untuk meningkatkan keterampilan bisnis para anggota KKT dan memperbaiki kualitas sistem pendistribusian sayur mayur. Model optimisasi tujuan majemuk dikembangkan untuk mementukan varibel keputusan terdiri dari jumlah dan waktu pasokan, tingkat pelatihan yang diikuti, target perbaikan kualitas, dan total biaya untuk aktivitas TJSP. Dari hasil contoh numerik dapat ditunjukkan bahwa model usulan dapat digunakan perusahaan menentukan prioritas aktivitas TJSP dalam rangka memberdayakan kelompok tani menjadi pemasok.

References

S.K. Chowdhury, A. Gulati, E. Gumbira-Sa’id, Asian J. Agric. Dev. 2/1 (2005) 39.

J.J. Cadilhon, P. Moustier, N.D. Poole, P.T.G. Tam, A.P. Fearne, Dev. Policy Rev. 24/1 (2006) 31.

W. Sutopo, M. Hisjam, Yuniaristanto, Proc. of the 6th National Industrial Engineering Conference, Surabaya, Indonesia, 2011, p.216.

W. Morgan, S. Iwantoro, I.A.S. Lestari, In: G.I. Johnson and P.J. Hofman (Eds), Agri Product SCM in Developing Countries, Australian Centre for International Agricultural Research, 2004, p.139.

N. Arumugam, M. A. Fatimah, E. F. C. Chew, and M. Zainalabidin, Agric. Econ. Czech, 56/9 (2010) 435.

E. Y. Hastuti, Master Thesis, Diponegoro University, Indonesia, 2007.

W. Sutopo, S. Nur Bahagia, Proc. The 9th APIEMS Conf., Bali, Indonesia, 2008, p.1152.

J.E. Austin, Agency for International Development, 2007.

G. Beers, In: G.I. Johnson, P.J. Hofman (Eds). Agri Product SCM in Developing Countries, Australian Centre for International Agricultural Research, 2004, p.76.

M.J. Maloni, M.E. Brown, J. Bus. Ethics 68/1 (2006) 35.

J.M. Cruz, Eur. J. Oper. Res. 184/1 (2008) 1005.

J.M. Cruz, T. Wakolbinger, Int. J. Prod. Econ., 116/1 (2008) 61.

C. Mark-Herbert, C. von Schantz, Electron. J. Bus. Ethics and Organ. Stud. 12/2 (2007) 4.

K. Amaeshi, O. Osuji, P. Nnodim, J. Bus. Ethics, 81/1 (2008) 223.

O.J. Ahumada, J.R. Villalobos, Eur. J. Operational Res. 195/1 (2009) 1.

G. Barbarosolu, Prod. Plan. Control 11/8 (2000) 732.

M. Esmaeili, P. Zeephongsekul, Int. J. Prod. Econ. 123/1 (2010) 146.

A.M. Blanco, G. Masini, N. Petracci, J.A. Bandoni, J. Food Eng. 70/3 (2005) 299.

C. Narrod, D. Roy, J. Okello, B. Avendaño, K. Rich, A. Thorat, Food Policy, 34/1 (2009) 1.

F. Chaddad, C. Fischer, M. Hartmann, In: C. Fischer, M. Hartmann (Eds), Agri-Food Chain Relationships, CAB Int. Press, 2010, p.267.

E. Reynolds, Reset: Corporate Social Responsibility in the Global Electronics Supply Chain, http://goodelectronics.org, 2009.

Recommended Citation

Sutopo, Wahyudi; Hisjam, Muh.; and Yuniaristanto, Yuniaristanto (2012) "An Agri-Food Supply Chain Model to Enhance the Business Skills of Small-Scale Farmers Using Corporate Social Responsibility," Makara Journal of Technology: Vol. 16: Iss. 1, Article 7.
DOI: 10.7454/mst.v16i1.1050
Available at: https://scholarhub.ui.ac.id/mjt/vol16/iss1/7