Rice supply chain network equilibrium optimization using the successive average method

Abstract

Maximizing the surplus received by each actor is an ongoing issue in the current rice supply chain model. This study assesses a supply chain network that involves five business actors, namely collectors, wholesalers, retailers, demand markets and freight carriers. The interconnectedness of the actors results in a dynamic supply chain problem and free competition. The Supply Chain Network Equilibrium (SCNE) method is commonly used to solve this problem but poses the important issue of the ease of computation. Another method to achieve network equilibrium is the method of successive average (MSA). The MSA is more capable of optimization to generate accurate results with fewer iterations than the SCNE method. The simple case and real case results demonstrate that the MSA method can be used as an alternative for optimizing rice supply chains.