A Model of Performance Based Contract Supply Chain Risk Management for Aquaculture Shrimp Agroindustry

Abstract

The Shrimp Industry was to face the problem of scarcity of supply. It caused by a profit-sharing contract between farmers, collectors and agro-industry was never fair. This issue causing a contract between supply chain actors was unsustainable. The objective of this paper was to develop a model of performance based contract with revenue sharing approach in aquaculture shrimp agroindustry supply chain. We introduced a model of revenue sharing for each actor (farmers, collectors, industry) with price and quantity consideration. This paper localized a supply chain for two actor interaction and trade-off this localized supply chain with goal programming consideration. Revenue sharing for farmers in first localized supply chain is formulated based on revenue sharing in collectors. The addition of this revenue sharing called revenue sharing in supply chain 1. The revenue sharing addition for collectors and industry we called revenue sharing in supply chain 2.

We trade-off of supply chain 1 and supply chain 2 with goal programming consideration to find a production quantity and revenue sharing for each actors. We find that the quantity in farmers is 0.2 kg/day or 200,000 shrimp fries for cultivation per day (x₃), 2,117 kg/day in collectors (x₂) and 1,271 kg/day in industry (x₁). The revenue sharing in supply chain 1 was 0.74 and supply chain and 0.70 in supply chain 2. Also, the needs of shrimp fries obtained based on the number of requests per year from the pond with the level of traditional technologies plus (x₄), semi-intensive (x₅) and intensive (x₆) (ratio of 6: 3: 1), each for 8,395,513 animals, 33,516,428 animals and 5,225,558 animals per year.