A Buffer Stocks Model for Stabilizing Price in Duopoly-Like Market

Sutopo, Wahyudi and Bahagia, Senator Nur and Cakravastia, Andi and Samadhi, TMA. Ari (2009) A Buffer Stocks Model for Stabilizing Price in Duopoly-Like Market. 2 nd Asia Pacific Conference on Manufacturing System.

[img] PDF
Download (157Kb)


    This paper presents the staple-food distribution problem in agro-industry. There is a great difference of staple-food supplies in the harvest-season and in the planting-season meanwhile the demand is relatively constant. This situation will trigger price-volatility and shortage of staple-food, and it causes opportunity-losses for the stakeholders (producer, consumer, wholesaler/trader, and the government). For stabilizing the price, the government has several stabilization policies; one of them is market-intervention policy by using buffer-stocks schemes. The market-intervention policy should be utilized for improving producer’s profit, for cutting consumer’s expenditure, and for sustaining wholesaler’s margin-profit by implementing price-support and price-stabilization. In duopoly-like market, we assume that there are only two market-players in the distribution system. The objective of this research is to determine the instruments for operating Market-Intervention Program which consist of the quantity, time, and price of the buffer-stocks schemes. The problem was solved using 3 approaches. First, a comparative cost/benefit analysis between free-market and intervention-market can be used to formulate the objective function of each stakeholders. Second, the integration of optimization model and econometrics model were use to develop the decision-variables subject to the expectation of stakeholders, the buffer-stocks requirement, and the dynamics price equilibrium properties. Third, model market with Inventory was applied for solving the market-price equilibrium. The result could be used to analyze such the staple-food distribution system, incorporating the configuration of duo-producers, duo market-buyers, and duo-consumers. Keywords: buffer-stocks, duopoly-like market, market-intervention program, model market with inventory, and staple-food distribution system.

    Item Type: Article
    Subjects: T Technology > T Technology (General)
    Divisions: Fakultas Teknik > Teknik Kimia
    Depositing User: mr azis r
    Date Deposited: 20 May 2013 22:18
    Last Modified: 20 May 2013 22:18
    URI: https://eprints.uns.ac.id/id/eprint/755

    Actions (login required)

    View Item