Coordination Of Fresh Produce Supply Chain Based On Option Theory

With the gradual development of agricultural economy, the quality assurance and price fluctuation of fresh agricultural products are influencing people’s life more and more. How to coordinate the fresh agricultural products supply chain effectively to maximize the whole supply chain profit, and how to ensure the stable price and the high quality, has become the focus of the government, scholars and the enterprise of the supply chain. Due to the characters of fresh agricultural products, such as most are primary without processing or a small amount, the storage time is very short, easy to rot, sale cycle is short and so on, with these factors, the turnover rate of fresh agricultural products is high, belong to the fast moving consumer goods, and the range changes in market supply and demand is large, particularly focused by the government and consumers, therefore, making the fresh agricultural products as the research object has more significance.In recent years, The mode of farmers and markets is more and more mature, but also promote the development of fresh agricultural products supply chain. The implementation of the model can solve many problems of fresh agricultural products in our country at present, including the circulation problem, price, and the interests of the farmers and so on. As a result, farmers and model more research significance.This paper analyzes the relevant theories of supply chain coordination research both home and abroad, combined with the characters of fresh agricultural product in our country, based on the newsboy model, considered the uncertainty, I established the supply chain of the fresh agricultural product, found out the best amount, this can be the reference for farmers’ production plan. Then the option contract is introduced into the fresh agricultural product supply chain, through the design of option mechanism to promote the profit between the agricultural cooperatives and supermarkets allocated reasonably, eventually making agricultural products supply chain’s overall profits reached the maximum at the same time.Through the study, through example analysis under the consideration of the uncertainty of agricultural production, farmers can by expanding the scale of production to avoid the risk of agriculture, and farmers can before production according to the supermarket in order to find the optimal production plan. But the introduction of option contracts can make the farmers have autonomy and options pricing power, which greatly improved the farmers grow enthusiasm, and introduce the option contract can coordinate the supply chain, reducing transaction costs, improve the efficiency of the whole supply chain.