Supply Chain Contract for Retailer at Poultry Farm

Abstract

This study aimed to design a supply contract at a poultry farm. In this farm, Price fluctuation of eggs creates problems between farm-retailer which is fluctuation retrieval between each retailer that results in a buildup of eggs averaging 138 bonds worth 49,68 million. Currently, the farm just uses trusted-based for the egg distribution procedure. if the retailer does not come to acquire the eggs, the owner attempt to locate another supplier to purchase the eggs. This condition causes the fluctuation in egg sales. Observations were made of large retailers totaling four retailers. The work was observed using a questionnaire and direct interview with the supervisor, inventory and warehousing manager, and owner. This study uses the current reality tree to analyze the root cause of the problem that faces the farm and uses the analytical hierarchy process to construct a supply contract selection based on justification. The results showed that the farm implemented a quantity flexibility contract for four large retailers. Based on calculation Implementing a quantity flexibility contract will enhance the supply chain profit equals Rp. Rp48.021.322,- for Retailer A, Rp.17.669.702,- for Retailer B, Rp 26.403.667,- for Retailer C and Rp.44.379.203,- for Retailer D.

Keywords: Distribution procedure, effectiveness, price fluctuation, supply chain contract,