Leontief Input-Output Method for The Fresh Milk Distribution Linkage Analysis

Riski Nur Istiqomah, Trija Fayeldi


This research discusses about linkage analysis and identifies the key sector in the fresh milk distribution using Leontief Input-Output method. This method is one of the application of Mathematics in economy. The current fresh milk distribution system includes dairy farmers →collectors→fresh milk processing industries→processed milk distributors→consumers. Then, the distribution is merged between the collectors’ axctivity and the fresh milk processing industry. The data used are primary and secondary data taken in June 2016 in Kecamatan Jabung Kabupaten Malang. The collected data are then analysed using Leontief Input-Output Matriks and Python (PYIO 2.1) software. The result is that the merging of the collectors’ and the fresh milk processing industry’s activities shows high indices of forward linkages and backward linkages. It is shown that merging of the two activities is the key sector which has an important role in developing the whole activities in the fresh milk distribution.


Fresh Milk Distribution; Leontief Input-Output Method; Forward Linkages; Backward Linkages; Key Sector

Full Text:



Andreosso-O’Callaghan, B., & Yue, G. (2004). Intersectoral Linkages and Key Sectors in China: 1987-1997. Asian Economic Journal, 165-183.

Ebiefung , A. (2010). Choice of Technology, Industrial Pollution, and the Vertical linear Complementarity Problem. Global Journal of Mathematical Sciences, 9(2), 113-120.

Ebiefung, A. (2013). A Generalization of The Input-Output Pollution Control Model and Product Selection. Applied Mathematics, 4, 360-362.

Ebiefung, A., & Isaac, I. (2012). An Input-Output Pollution Control Model and Product Selection. Journal of Mathematical Research, 4(5), 1-7.

Ebiefung, A., & M., K. (1993). The Generalized Leontief Input-Output Model and Its Application to The Choice of New Technology. Annals of Operations Research, 44, 161-172.

Hirschman , A. O. (1958). The Strategy of Economic Development. New Haven: Yale University Press.

Leon, S. J. (1998). Linear Algebra with Applications (Fifth ed.). New Jersey: Pretice-Hall, inc.

Leontief , W. (1986). Input-Output Economics. New York: Oxford University Press.

Obikwere, C., & Ebiefung, A. (2014). The Leontief Input-Ooutput Production Model and Its Application to Inventory Control. Asian Journal of Mathematics and Applications, 1-7.

Rahayu, Y., & Nurhadiyono, B. (2012). Implementasi Matriks pada Matematika Bisnis dan Ekonomi. Techno.COM, 74-81.

Rasmussen , P. N. (1956). Studies inIntersectoral Relations. Amsterdam: North-Holland.

Silveira, T., Smaniotto, T., Fabris, D. R., Neto, A. N., Jùnior, C. A., Cardoso, B. F., et al. (2015). Input-Output Analysis for Agricultural and Livestock Sector in The Brazilian Economy. Rivista di Economia Agraria, LXX(1), 33-54.

Tanaka, F. J. (2011). Applications of Leontief’s Input-Output Analysis in Our Economy. Faculty of Economics Journal University of Nagasaki, 45(1), 29-96.

Zhou , M. (2011). Education and Management (III ed.). New York: Springer-Verlag Berlin Heidelberg.

DOI: https://doi.org/10.18860/ca.v4i3.3718


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Editorial Office
Mathematics Department,
Universitas Islam Negeri Maulana Malik Ibrahim Malang
Jalan Gajayana 50 Malang, Jawa Timur, Indonesia 65144
Faximile (+62) 341 558933
e-mail: cauchy@uin-malang.ac.id

Creative Commons License
CAUCHY: Jurnal Matematika Murni dan Aplikasi is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.