TITLE:
Stochastic Model of Rural Agribusiness Supply Chain: A Case Study of Gatsibo District
AUTHORS:
Exode Rukundo
KEYWORDS:
Economy, Agriculture, Stochastic, Market, Supply Chain, Model
JOURNAL NAME:
Modern Economy,
Vol.13 No.3,
March
21,
2022
ABSTRACT: The current economy of most
developing countries is based on agriculture and its related operations that
serve as the main entrance into the emerging industrial transformation. The
lookout focuses on the integration of rural areas as drivers of a meaningful
part of the land output. The concern has been to curiously follow the changes
in the agricultural production environment from a global perspective of the
market economy and its integration in the current economic
revolution/transformation. The branches of deepening the understanding of this
issue enroot in levelling the optimization of the benefit at all extremes of
the processes involved in decentralized agribusiness functions. This study is
essentially targeting to explain the current agriculture supply chain formula
in rural parts of Rwanda for a more competitive equilibrium of the agricultural
production planning and inventory and the distribution as the rural market
nodes. The methodological intention was to drive a stochastic view of the
operational transactions through the flow of the financial means (income from
job for consumers and revenues from sales for rice farmers) and the likelihood
to switch (respond to one’s reactions or actions) to one of the nodes, if any.
The results show that the financial security on both parties is not a driver to
quicken the transactions or sustain any change in the supply chain and it calls
for exogenous factors, in short term, to reverse the trends.