Shared Storage Impact on Rice Supply Chain Network

Abstract

Shared storage offers significant benefits to various stakeholders in the rice supply chain, a critical sector in Indonesia's economy. This study evaluates the impact of shared storage operations on logistic costs and the corresponding changes in the profitability of actors, such as collectors, wholesalers, and retailers. Utilizing a bi-level modeling approach inspired by the Stackelberg framework, the research incorporates the Genetic Local Search (GLS) algorithm to optimize the rice selling price and the Minimum Successive Average (MSA) method to analyze dynamic competition under user equilibrium conditions. The findings reveal that shared storage reduces logistic costs and rice selling price, which account for 33.09% and 4.04% of the average costs for collectors. These results strengthen the strategic value of shared storage investments in enhancing the economic performance of agricultural supply chains.