#TITLE_ALTERNATIVE#
Since distribution policy of cooking oil left to the free market mechanism, price developments become more unstable with the trend likely to increase. This happens because the cooking oil has inelastic demand characteristics so prone to speculation. Government plans to replace cooking oil into Minya...
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Format: | Theses |
Language: | Indonesia |
Online Access: | https://digilib.itb.ac.id/gdl/view/14323 |
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Institution: | Institut Teknologi Bandung |
Language: | Indonesia |
Summary: | Since distribution policy of cooking oil left to the free market mechanism, price developments become more unstable with the trend likely to increase. This happens because the cooking oil has inelastic demand characteristics so prone to speculation. Government plans to replace cooking oil into Minyakita in 2015 with the distribution remains left to the market mechanism. This raises the concern that when all the cooking oil has been replaced with Minyakita, price fluctuations will still happen. This research is intended to design Minyakita distribution policy that can provide better performance of distribution system in terms of price stability. Distribution policy was designed through 3 (three) phases. The first phase, evaluating and analyzing opportunities for improvement in the current distribution system using streamlining tools in Business Process Improvement (BPI). The second phase, analyzing the appropriate form of indirect market intervention to implement the actual system analysis opportunities. The third stage, formulating an appropriate distribution policy specification based on the the actual system improvement opportunities and forms of market intervention using the analysis tools of of supply chain design consideration, channel management schematic, and vertical marketing system. the specifications will be used as the basis for the development further to generates some alternative distribution policies that can be implemented in Indonesia. Formulation of the distribution policy specification generates a form of indirect market intervention through the establishment of distribution networks of distribution centers as government agencies who can control the pricing policy on counterweight distribution networks and be able to control the price of the existing distribution networks. Using a market leader concept, controlling prices on existing distribution networks is done by dominating the supply and distribution through the provision of PPN-DTP incentives for Minyakita that channeled through a counterweight distribution networks and government support in the promotion and dissemination. There are two (2) alternatives of Distribution Center's role. Alternative 1, the distribution center acts as a distributor for retailers in traditional markets as partner. alternative 2, the distribution center acts as a broker as well as logistics services provider between producers and local distributors that become partners. Selection of the best alternative is done by using Analytic Hierarchy Process (AHP) methodology based on 4 opinions of stakeholders (expert judgment) : the representative of the Ministry of Trade, producer (GIMNI), Pos Indonesia as a distribution center and logistics expert (logistics expert). The best alternative based on AHP methodology is a first alternative with a score of 0.7033, so first alternative can be proposed to the government as the regulator. Prerequisites implementation of the proposed distribution policy : (1) addition of regulations that governing the establishment of counterweight distribution networks which Pos Indonesia networks based, providing PPN-DTP facility for Minyakita producers that involved in counterweight distribution networks, granting subsidies to Minyakita producers if the CPO prices have to increase so can affect the producer's price and bailout startup capital for distribution center, (2) adjustment of office spaces and logistics infrastructure owned by Pos Indonesia and (3) addition of distribution center unit on the organizational structure of Pos Indonesia. |
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