A model framework for coordinating the upstream supply chain of sago-based food MSMEs

Abstract

The micro, small, and medium enterprises (MSMEs) engaged in sago-based food production have not been running optimally. One concern is related to the management of raw material procurement (sago starch), which involves relationships with suppliers. This study aims to build a model framework for coordinating sago food MSMEs and sago starch suppliers. First, identification and analysis were conducted on the sago food MSME supply chain in Kepulauan Meranti, Riau, Indonesia. Second, the required coordination between MSMEs and suppliers was discussed using optimization models that incorporated assumptions, parameters, and decision variables​​. The model framework can assist sago food MSMEs in planning related to coordination with suppliers. Thus, it is expected that optimization of the coordination system can lead to increased performance and competitiveness of the MSMEs sago food supply chain.