A Stackelberg Game Model for Procurement Pricing in the Upstream Sago Agro-Industry Supply Chain

Syamsul Anwar; Rizki Alfi; Gusti Randy Pratama; Rudianto Rudianto

doi:10.31764/jua.v30i4.41786

A Stackelberg Game Model for Procurement Pricing in the Upstream Sago Agro-Industry Supply Chain

Syamsul Anwar, Rizki Alfi, Gusti Randy Pratama, Rudianto Rudianto

Abstract

This study aims to develop an analytical Stackelberg game model in which the processing industry acts as the leader and farmers as followers. The model is solved analytically using backward induction. A numerical illustration is provided based on sago industry characteristics obtained from the literature and field observations. The results show an equilibrium raw material procurement price of IDR 61,000 per sago log. At this price, each farmer supplies 16 sago logs per month, resulting in an aggregate supply of 400 logs. Both farmers and the processing industry obtain positive profits at equilibrium. The processing industry obtains higher aggregate profit under this leader-follower structure. The results show how strategic procurement pricing shapes farmer supply and the profitability of the sago processing industry. This study provides a baseline framework for examining procurement relationships in the upstream sago agro-industry supply chain.

Keywords

Procurement pricing; Sago agro-industry; Stackelberg game; Stackelberg game Supply chain; Supply decision

Full Text:

Download PDF

References

Agbo, M., Rousselière, D., & Salanié, J. (2015). Agricultural marketing cooperatives with direct selling: A cooperative–non-cooperative game. Journal of Economic Behavior & Organization, 109, 56–71. https://doi.org/10.1016/j.jebo.2014.11.003

Anwar, S. (2023). Ketimpangan posisi daya tawar di dalam rantai pasok industri agro. In Rencana, Implementasi, dan Evaluasi Menuju Hilirisasi Industri di Indonesia (pp. 511–515). PT Lontar Digital Asia.

Anwar, S., & Djatna, T. (2018). A system analysis and design of responsive supply chain for micro- and small-sized sago-based food industry. Prooceedings of The 1st Asia Pacific Conference on Research in Industrial and Systems Engineering (APCoRISE) 2018, 146–151.

Anwar, S., Djatna, T., Sukardi, & Suryadarma, P. (2022). Modelling supply chain risks and their impacts on the performance of the sago starch agro-industry. International Journal of Productivity and Performance Management, 71(6), 2361–2392. https://doi.org/10.1108/IJPPM-10-2020-0556

Anwar, S., Pratama, G. R., & Islamy, M. A. (2025). A model framework for coordinating the upstream supply chain of sago-based food MSMEs. Proceedings of ICASS (International Conference on Agricultural Strategy for Sustainability), 1, 117–124. https://journal.uir.ac.id/index.php/icass/article/view/23313

Ehara, S. (2024). Variation in the Consumer Prices of Sago Palm Starch and Similar Powdery Starch Obtained from Other Crops in Jakarta, Indonesia. Sago Palm, 31(2), 88-98. . https://doi.org/10.57418/sagopalm.31.2_88

Elida, S., Amin, A. M., Sutrisno, J., & Darsono. (2021). The current condition of agro-industrial supply chain management of public sago product: A case survey of Meranti Islands Regency, Indonesia. IOP Conference Series: Earth and Environmental Science, 905(1), 012091. https://doi.org/10.1088/1755-1315/905/1/012091

Herlon, M., Oktari, R. D., & Ridho, Z. (2022). Analisis manajemen rantai pasok industri sagu di Kabupaten Kepulauan Meranti (Studi kasus PT. Nasional Sago Prima). Jurnal Agroteknologi, 13(1), 41-52.

Jin, Q., Dang, H., Wang, H., & Zhang, Z. (2024). Exploring cooperative mechanisms in the chinese agricultural value chain: A game model analysis based on leading enterprises and small farmers. Agriculture, 14(3), 437. https://doi.org/10.3390/agriculture14030437

Juwairiah, J., Handayani, N., & Nadya, Y. (2023). Measurement of supply chain management performance in sago flour business using the supply chain operation reference (SCOR) method to increase SME productivity. PROZIMA (Productivity, Optimization and Manufacturing System Engineering), 7(1), 24–34. https://doi.org/10.21070/prozima.v7i1.1604

Khotijah, S., Rosnita, & Dewi, N. (2020). Analisis rantai nilai dan keberlanjutan industri sagu (metroxylon SP) rakyat Kabupaten Kepulauan Meranti. Jurnal Ilmu Pertanian, 17(1). https://doi.org/10.31849/jip.v17i1.3563

Leenders, L., Bahl, B., Hennen, M., & Bardow, A. (2019). Coordinating scheduling of production and utility system using a Stackelberg game. Energy, 175, 1283–1295. https://doi.org/10.1016/j.energy.2019.03.132

Murod, M., Kusmana, C., Bintoro, M. H., Widiatmaka, N., & Hilmi, E. (2018). Analisis struktur kendala dalam pengelolaan sagu berkelanjutan di Kabupaten Kepulauan Meranti Provinsi Riau. Buletin Palma, 19(2), 101. https://doi.org/10.21082/bp.v19n2.2018.101-116

Pratama, G. R., Hardjomidjojo, H., Iskandar, A., & Muhandri, T. (2018). Analisis rantai nilai Agroindustri sagu di Kabupaten Kepulauan Meranti. Jurnal Teknologi Industri Pertanian, 28(2), 199–209. https://doi.org/10.24961/j.tek.ind.pert.2018.28.2.199

Riza, S., Agusnimar, Bahri, S., Azmansyah, & Sutriana, S. (2017). Rantai pasok komoditi sagu (metroxylon sagu) di Kabupaten Kepulauan Meranti. IPTEKIN, 3(1), 1–14. https://jurnal.riau.go.id/index.php/iptekin

Trisia, M. A., Tachikawa, M., & Ehara, H. (2021). The role of the sago supply chain for rural development in Indonesia: A review and perspective. Reviews in Agricultural Science, 9(0), 143–156. https://doi.org/10.7831/ras.9.0_143

Vasnani, N. N., Chua, F. L. S., Ocampo, L. A., & Pacio, L. B. M. (2019). Game theory in supply chain management: Current trends and applications. International Journal of Applied Decision Sciences, 12(1), 56. https://doi.org/10.1504/IJADS.2019.096552

Wang, J., Huo, Y., Guo, X., & Xu, Y. (2022). The pricing strategy of the agricultural product supply chain with farmer cooperatives as the core enterprise. Agriculture, 12(5), 732. https://doi.org/10.3390/agriculture12050732

Wang, L., & Watanabe, T. (2016). A stackelberg game theoretic analysis of incentive effects under perceived risk for china’s straw-based power plant supply chain. Energies, 9(6), 455. https://doi.org/10.3390/en9060455

Yusmiati, Y., Machfud, M., Marimin, M., & Sunarti, T. C. (2023). Distribusi keuntungan yang adil antar aktor rantai pasok agroindustri sagu Di Kabupaten Kepulauan Meranti, Riau. Jurnal Teknologi Industri Pertanian, 33(2), 105–116. https://doi.org/10.24961/j.tek.ind.pert.2023.33.2.105

DOI: https://doi.org/10.31764/jua.v30i4.41786