Study On Decision-Making Models Of Agriculture Product’s Supply Chains Based On Product Quality Grading

As the increase of people’s standard of living and the development of economic globalization, the Chinese request the higher products qualities. People request the higher agriculture products qualities than that of others, because the close relationship between people’s lives and agriculture products. Agriculture products quality grading refers to the sorting of unlike lots of products into uniform categories according quality standards. In many developed countries, Agriculture products quality grading was modernized, agriculture products quality grading has became the necessary tool to promote the efficiency of market for agriculture products.Agriculture modernization can not be realized without an efficient product market. The traditional point believes that the characteristics of agriculture products are low price, centralization product which makes shortcomings restricting agriculture products for customers and producers. Through the languages of different qualities levels, help the farmers to optimize input allocation, use new technology.Chapter Ⅰ will introduce topic’s background and significance from economical significance and consumer welfare. Then, points out the contents of this major study, research methods and innovationsChapter Ⅱ starts with the current theoretical research about product quality at home and abroad, and then the author introduces the theory of agriculture products quality grading, which is the basic of the direction of this article.The chapters Ⅲ, Ⅳ, Ⅴ are the centre of this article, focus on the part interest of participants of supply chain-supplier of agriculture products, producer and costumer-and the total interest of the all supply chain. At the same time, I use economic theory research the theory of agriculture products quality grading. The primary coverage of these three chapters as follow:The chapter III is divided into three parts. First, I analyze driving force in the one participant supply chain; assume that products divide into to levels-H, L, for their quality differences. In this circumstance, agriculture products quality grading affects the interest of farmers. I assume that the profit is the driving force of farmers, modeling farmers’profits of before and after quality grading, then educe the attract factors of the farmers involved in classification and their impact on the classification. The conclusions:firstly, income of farmers before and after grading, the unit price of materials, unit price of H, L-level products and the effects of proportion of H-level materials. Again, using the models of the first two chapters, introduce examples and data, furthermore define attract factors of involved in quality grading policy farmers and manufacturers in the case of the primary and secondary supply chain. On this basis, I added detect costs for grading, made the model more authenticity and more integrity.The main content of chapter IV is multi-level quality classification model. Researches that focus in this chapter are: First, calculate multi-level quality classification model, find the number of the levels that maximize the return of manufacturer in the supply chain, and on this basis, discuss manufacturers how to formulate classification strategies. Secondly, from the standpoint of customers, assume that customer have flexibility demand only to high-quality level of products. Based on this assumption, I added the flexibility demands of customers, set up the manufacturer profit model. Finally, selection of surge condition and calculation case on analysis of contents of this chapter, introduce data to explore the max profits of manufacturers under how many levels and which level of the products. Conclusions:the products in the middle grade levels take the best profits to the manufacturers and the manufacturer profits decline from the middle class, respectively, to high classes and low classes.The main contents of chapter V are return compensation and transfer payments policy under different circumstances. The key elements:Firstly, I consider the manufacturer to take product quality classification strategy in the case of profitability, introduce the coefficient of rebates ratio, on the basis, once again modeling the profit of suppliers and manufacturers to discuss what rebates ratio can make the whole supply chain system to achieve maximum effectiveness. Secondly, I take into account the manufacturer’s product quality grading policy in manufacturer loss profits condition. At first analyze overall effectiveness of the whole supply chain, and then set the internal loss and external loss coefficient, respectively, which discuss what proportion of internal losses and external loss ratio that suppliers and manufacturers commitment. After research four conditions and study the effectiveness of each supply chain model, founding that only in internal losses and external losses shared by both, members of the supply chain not only to meet the goal of part optimization, but also to meet the whole supply chain system achieve to maximum effectiveness, while proven that supply chain is a unified, global concept once again, and that inextricable link between the interests of the members. Finally, I employ previous data and put the data into the models, verifying the conclusions further.After deep research that the increase interest of suppler and producer since agriculture products quality grading, Chapter6of this article gives some research directions of agriculture products quality grading and some advice about the role which government should play during the agriculture product grading in China.