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Gusti Randy Pratama
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A Stackelberg Game Model for Procurement Pricing in the Upstream Sago Agro-Industry Supply Chain Syamsul Anwar; Rizki Alfi; Gusti Randy Pratama; Rudianto Rudianto
Ulul Albab: Majalah Universitas Muhammadiyah Mataram Vol 30, No 4 (2026): October
Publisher : Universitas Muhammadiyah Mataram

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31764/jua.v30i4.41786

Abstract

This study aims to develop an analytical Stackelberg game model in which the processing industry acts as the leader and farmers as followers. The model is solved analytically using backward induction. A numerical illustration is provided based on sago industry characteristics obtained from the literature and field observations. The results show an equilibrium raw material procurement price of IDR 61,000 per sago log. At this price, each farmer supplies 16 sago logs per month, resulting in an aggregate supply of 400 logs. Both farmers and the processing industry obtain positive profits at equilibrium. The processing industry obtains higher aggregate profit under this leader-follower structure. The results show how strategic procurement pricing shapes farmer supply and the profitability of the sago processing industry. This study provides a baseline framework for examining procurement relationships in the upstream sago agro-industry supply chain.
Co-Authors Rizki Alfi Rudianto Rudianto Syamsul Anwar