ARTICLE
TITLE

A Buffer Stock Model to Ensure Price Stabilization and Availability of Seasonal Staple Foods under Free Trade Considerations

SUMMARY

Price  volatility  and  scarcity  have  become  a  great  problem  in  the distribution  system  of  seasonal  staple  foods  produced  by  the  agricultural industry.  There  is  a  salient  supply  disparity  during  the  harvest  and  planting seasons.  This  condition  could  cause  disadvantages  to  stakeholders  such  as producers,  wholesalers,  consumers,  and  government.  This  paper  proposes  a buffer  stock  model  under  free-trade  considerations  to  substitute  quantitative restrictions  and  tariffs  with  an  indirect  market  intervention   instrument.  This instrument  was  developed  using  a  buffer  stock  scheme  in  accordance  with  a  warehouse receipt system  (WRS) and  a  collateral management system.  A  public service  institution  for  staple  food  buffer  stock   (BLUPP)  is  proposed  as  the wholesaler’s competitor,  with  as main responsibility   to ensure price stabilization and availability of staple food. Multi-criteria decision-making is formulated as a single  objective  mixed  integer  non-linear  programming  (MINLP)  model.  The results  shows  that  the  proposed  model  can  be  applied  to  solve  the  distribution problem  and  can  give  more  promising  outcomes  than  its  counterpart,  direct market intervention.

 Articles related

Sulwan Permana,Adi Susetyaningsih    

Abstrak Sektor pertanian masih merupakan primadona masyarakat dan dijadikan sebagai pekerjaan dalam menunjang kehidupan, meskipun banyak kawasan pertanian yang beralih fungsi menjadi pemukiman terutama di perkotaan. Hampir setiap tahun, luas panen m... see more

Revista: Teras Jurnal

Hariyanto Hariyanto    

The results showed that 9 (nine) villages implemented technical irrigation by utilizing underground water as irrigation network in each plot of farmer land there was one village applying an irrigation network of open tapping channel from the river.The re... see more


Biqing Li,Yongfa Ling,Miao Tian,Shiyong Zheng    

Sugarcane is a kind of important sugar crops, which has been planted in large area of southern China, but traditional manual operation still applied on sugarcane planting and management at present, leading to higher labor costs. In recent years, the deve... see more


Gao Guandong,Jia Yuchen,Xiao Ke    

With the wide adoption of a shared economy, the term “share” has become closely linked with people’s daily life. To improve the economic output per unit area of farmland and allow urban residents to experience the fun of cultivating, an IOT-based multi-s... see more


Yubao Xu    

The purpose of this study is to achieve real-time acquisition and monitoring of temperature in large-scale industrial or agricultural production scene, and timely detect abnormal temperature. FPGA chip, multi temperature sensor and alarm control module t... see more