China's Dairy Industry Profits Analysis Based Social Network

Currently, the dairy industry has entered a milk product, channel network of the whole industrial chain competition period. The future competition between dairy companies in the whole industry chain will start dairy industry concentration will be further enhanced. Since 2009, raw milk prices continued substantial growth, presented a huge challenge to dairy companies, dairy companies in the past, "not a cow", alone marketing strategy has been difficult to sustain. In order to avoid the vicious competition of milk, dairy companies began large-scale construction of milk base, on the one hand helps prevent tension of raw materials, the occurrence of the phenomenon of driving up the price of raw milk, and further stabilize prices; on the other hand, better guarantee of the original milk quality and safety.As the dairy industry environment changes, the traditional organization theory is no longer able to meet current regulatory requirements, environmental requirements changing daily interest of the organization's ability to respond to a very high demand. The traditional hierarchical structure of the strict limits between the various levels is difficult to meet the immediate environment. So for a new environment, should be converted to a perspective from the perspective of network analysis of organizations.This paper considers China's dairy industry has a social network characteristics, the establishment of a dairy enterprise profit function, and then from a social network perspective "milk stations-farmers' social network formation mechanism, and Netlogo platform for simulation analysis.Specific research papers are as follows:First, the paper considers the acquisition of raw milk, links and merchandising links. Acquisition of part of the original milk, according to the actual "business-Milk Station-dairy farmers' cooperative approach, business acquisitions were set up cost function of raw milk, milk and dairy farmers stand profit function profit function, and the actual situation to be certain restrictions. Part in the sale of goods, taking into account the different sales channels of goods, the eventual establishment of a corporate cost-benefit function.Second, the introduction of scale-free network formation mechanism, as well as scale-free network, an important statistical properties. Generated based on the actual situation and the "milk stations-dairy farmers," the scale-free network model to analyze the milk station and fixed costs, variable costs constitute, milk stations have been the actual average cost function.Third, the use of Netlogo programming, under the assumption that certain conditions analyzed milk stations, the average profit. Finally, the conclusion, with the growing number of dairy farmers and milk station fixed costs are continuously diluted, when the average fixed cost is equal to average earnings, the milk station for maximum profit.Finally, the paper summarizes the main conclusions of the study and put forward policy recommendations.