Contract Model in Sustainable Supply Chain Risk Management: An Empirical Evidence on Apple Based Products in Indonesian Small Scale Industry

Abstract

This research aimed to develop a performance based contract model for supply chain risk management based on revenue sharing and with a goal programming approach. The research was conducted on the famous apple juice industry in Batu City, Indonesia in July-August 2020. Data were collected from several informants namely farmers, collectors and apple juice processor. This research shows that collectors play an important role in the sustainability of the supply chain for the apple juice industry. Collector also gets the largest revenue sharing which of course has been agreed upon by the actors in the supply chain and generates fairly fair revenue sharing.

Keywords: revenue sharing; sustainable supply chain; risk management; apple juice

DOI: 10.7176/EJBM/12-36-08

Publication date: December 31^st 2020