Supply Chain Coordination With Revenue Sharing Contract For Perishable Products With Dynamic Pricing

As the big supermarket chains and the farmer professional cooperatives developing rapidly in China, some areas already have the basic condition that fresh agricultural products from origin directly go into the supermarket. That carrying out fresh agricultural products "Straight-to-supermarket distribution of agricultural products" pilot program,exploring the effective ways and measures of the marketing channel for fresh agricultural products.The final goal is to reduce and optimize the supply chain link of agricultural products, reduce the cost of agricultural products accessing to market,increase the farmers’ income,and promote the coordinated development of urban and rural areas,establish modern circulation system of agricultural products."Straight-to-supermarket distribution of agricultural products" acts as the practice of promoting the coordinated development of urban and rural areas,and also is a kind of innovation for the circulation methods of agricultural products.It has been proved to be an effective ways because of the successful applications in many provinces.But it still has some problems.When the agricultural products supply chain is shortened, the supermarkets’ procurement cost is reduced,but the retail price is not changed,then the supermarkets revenue is raised,the farmers revenue is not changed.The supply chain contract gets a lot of attention as one of the main ways to solve the supply chain coordination problems.among the contracts,the revenue sharing contract is used widely in the real life because it is simple to operate and easy to understand. The revenue sharing contract research is mostly assumed that the price is constant,but most agricultural products are perishable products,have definite lifecycle,and the salvage value is nearly zero.This paper wants to extend the revenue sharing contract to the situation of the price dynamicing,improving the revenue of the agricultural products,increasing the total revenue of the supply chain,achieving the revenue rational distribution between the farmers and the supermarkets.This paper first summarize the perishable products pricing and the research situation of revenue sharing contract detailedly,and elaborate the correlation theory of supply chain coordination.Then basing on the newsboy model and according to the characteristic of the perishable products,build a two period supply chain coordination model which includes the farmers as the supplier and the supermaket as the retailer and draws into the revenue sharing.Then analysising the supply chain decision behavior in the case of centralized control model, decentralized model and the revenue sharing contract respectively.finally paper achieves the optimal order quantity and the retail price and the rational value range of the revenue sharing coefficient,finally an example is used to shown its rationality.Further,considering the perishable products,the freshness declines with time going by,the products are not easy to storage,salvage value is little,divide the sales cycle into two periods.In the first period,the products are sold at the normal price;in the second,because the freshness and the client demand are declined,the price in this period is lower than the price in the first period,to stimulate the demand. Specifically speaking,according to the characteristic of the products,build the profit model of the supply chain centralized decision behavior,solve the optimal order quantity and the retail price in the two period,to achieve the optimization of the total supply chain system as a standard of comparison.Then build the profit model of the supplier and the retalier decision behavior respectively,solve the optimal order quantity and the retail price.By comparison,it gets conclusion that with the revenue sharing,the supply chain total profit is better than the traditional model,and both the retalier and the supplier get more profit.Meanwhile,comparing the two conditions,it can get the rational value range of the revenue sharing coefficient,this also provides some flexibility for the retalier and the supplier,namely the farmers and the supermarkets,to get the profit.Finally,Through numerical example analyzed,proving the contract validity.