Agricultural Supply Chain Coordination Research With Asymmetry Information

Supply chain management thought was born in the1990s, and has been developedrapidly. In recent years, scholars pay a lot attention on agricultural supply chains, andit has been a hot research issue during the scholars.As the traditional supply chainmanagement, the systematic or global point of view is required in agricultural supplychain management to plan the all aspects involved for the supply chain from farmerto the end customers,in which logistics, information flow and capital flow among theparticipate members and departments will be effectively planned, coordinated, org-anized and controlled to make agricultural supply chain as a perfect whole. The targetof agricultural supply chain management is making the traditional starting from theindependent operation of their own interests as a pattern using scientific managementto achieve the overall collaborative operation and thereby the overall efficiency areimproved,thus achieving supply chain members Competitiveness. However, supplychain management practice faces many challenges, such as how to enable thefarmers and sales companies belonging to different economic entities to establish amutual sense of cooperation in order to have symmetric information, how to coo-rdination the supply chain with different risk-aversion participants and so on,eventually the aim is to develop their own operational decisions with the wholeagricultural supply chain’s interests. So,agricultural supply chain coordination rese-arch is endowed with theoretical significance in the case of information asymmetryand risk-aversion, and what’s more, this is also consistent with the actual situation, theresearch in this field is meaningful in practice.In this paper, based on the literature review, we study mainly supply chain coordi-nation problem through transfer payment contract model and the option contract mod-el in the context of asymmetry cost information and risk-aversion participants in ag-ricultural supply chain:(1) This part deals with the coordination of supply chain consisting of a farmerand a sales company under asymmetric cost information. From sales company’s persp-ective to analyze farmer’s decision-making behavior,use production subsidies toinduce farmers to adjust their production scale,achieve coordinated supply chain costinformation asymmetry. Not only the income of agricultural supply chain members can achieve Pareto improvement,but also realized the entire supply chain efficiencyimprovement.(2) The next study coordination agricultural supply chains with risk-averse farmersinvolved. Based on the model of contract-farming,option contract is introduced intothe model,building a agricultural products supply chain model by a risk-neutral salescompany and a risk-averse farmer. And the conditional valua-at-risk (CVaR) methodis utilized to describe the objective decision function of risk-averse farmer.Themembers of the agricultural products supply chain optimal decision option makingbehavior under option contract and different risk-averse is analyzed.The results showthat the farmers risk aversion η, as the demand’s inverse function of distributionfunction value of F1(η)is greater than the optimal order quantityQ*rof agricul-tural products sales company under no option coordination,where introduction of theoption contract, the income of farmer and sales company can achieve Pareto improve-ments.