TY  - JOUR
T1  - Analysis of Price Formation of Onion and Garlic Commodities: A
Framework of Supply Chain Management
AU - Wahyudin, M. AU - Agus Setyawan, Anton AU - Isa, Muzakar AU - Farid Wajdi, M. AU - , Syamsudin 
JO  - International Business Management
VL  - 11
IS  - 12
SP  - 1982
EP  - 1990
PY  - 2017
DA  - 2001/08/19
SN  - 1993-5250
DO  - ibm.2017.1982.1990
UR  - https://makhillpublications.co/view-article.php?doi=ibm.2017.1982.1990
KW  - Supply chain
KW  -price fluctuation
KW  -businessmen
KW  -inflation
KW  -analysis
KW  -labor cost
AB  - Despite the fact that the commodities of onion and garlic contributes to relatively high inflation in
several areas in Indonesia including in ex-Surakarta Residency, these commodities are undeniable very
essential. The dependency of onion and garlic supply and the length of the distribution channels have negative
impact on the price determined by the brokers or traders as the distributors of the commodity to the consumers.
The study aimed to analyze the pattern of price formation and distribution of onion and garlic in the adjacent
area of ex-Surakarta Residency. The analysis framework used in the study was the supply chain management.
The design of the study was mixed method, namely the quantitative survey and qualitative approach
of in-depth interview. The population of the study is the entire parties involved in the supply chain of garlic
and onion in ex-Surakarta Residency. The sampling methods were puRp.osive sampling and quota sampling.
The analysis tools were data Envelopment Analysis (DEA), analysis of producer share, margin and margin
profit ration, price correlation analysis and price transmission elasticity analysis. The study indicated the price
fluctuation of onion is caused by the planting season and climate change, seed quality and seed market share,
cartels on various levels and particular seasons of celebration. Meanwhile, the fluctuation price of garlic is
primarily caused by the import dependency which reached 90%. Analysis of price transmission elasticity
adduced the price pattern of onion and garlic at the level of the consumer is higher compared to the price
change at the level of producer. Te market participants have to face imperfectly competitive market and
inefficient marketing system. The most dominant price formation for onion was transportation costs while for
the garlic was labor costs. Analysis on supply chain efficiency indicated the performance of the distributors
in the supply chain of garlic and onion was inefficient. The inefficiency of onion supply chain took place in the
farmer level where the allocation of fertilizer, seed and labor costs is inefficient yet. The efficiency of garlic
supply chain was evidenced at the level of retailers and yet it endured non-optimal labor costs.
ER  -