Agent-based modelling in palm oil supply chain

Hidayat, Syarif and Nurhasanah, Nunung and Marimin (2016) Agent-based modelling in palm oil supply chain. In: Supply Chain Management: Applications for Manufacturing and Service Industries. Management Science: Theory and Applications . Nova Science, New York, pp. 115-140. ISBN 978-163-48498-7-6

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Agent based approach to the model the behavior of supply chain has proven to be effective and practical. It also satisfies the performance measurement requirements of the supply chain actors. In palm oil supply chain (POSC) operational risk, investment and technology levels between actors may not be proportionately rewarded at the same levels of added-value. Each actor will attempt to obtain the highest reward. However, each actor must consider the level of added-value obtained by actors so as to maintain fair balance in the overall supply chain and it will collapse. In this chapter the authors propose a formula to calculate the utility-function based added-value for each of the actors in the POSC. To optimize added-value distribution and negotiation between agents, the concept of stakeholder dialogue was used. Netlogo software was used in developing the models this chapter is important because developed models offer a workable algorithm to seek optimum weight level of underlying factors while calculating utility added-value that satisfy POSC as whole, therefore ensuring the supply chain sustainability. Application of these models to other types of commodity and different supply chain models will need some adjustments in the calculation.

Item Type: Book Section
Uncontrolled Keywords: industrial engineering; supply chain management; palm oil supply chain; added-value; business negotiation; agent-base modelling; netlogo software
Subjects: 600 Applied sciences & technology > 650 Management & public relations > 658 General Management
Divisions: Universitas Al-Azhar Indonesia (UAI) > Fakultas Sains dan Teknologi (FST) > Teknik Industri
Depositing User: Rifda Jilan
Date Deposited: 12 Apr 2023 21:16
Last Modified: 13 Apr 2023 03:15

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