A Systems dynamics approach to balancing wood supply and demand for sustaining furniture industry

The Indonesian furniture industry consists of various actors in a long chain from production to consumption; these include tree growers, producers, retailers and exporters. The furniture industry provides employment and livelihoods for millions of people. However, insecurity of raw material has the potential to lead to poverty due to the unsustainable nature of the furniture industry. This research used methods, such as conceptualisation, specification, evaluation and the use of a model. The model analyses wood supply and demand in the furniture industry, which comprises of state owned and community teak forests, furniture workshops, domestic and international markets. The model simulates tree dynamics, furniture processing, and the fluctuation of markets to asses the impacts on the sustainability of the furniture industry. We develop "business as usual," free trade and certification scenarios to understand their impacts on wood supply and demand, as well as the future sustainability of the furniture industry. This study looked at the Jepara furniture making industry, Indonesia, which shares similar experiences in furniture making in Southeast Asia and honey production in Africa. The paper recommends solutions to sustain wood-based industries and improve the livelihoods of local communities.

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