Research On Agricultural Supply Chain Under The Value Loss And Risk Aversion

With the development of social economy and living standards, the agricultural production increases rapidly and is more required by consumers for better quality of agricultural products. In recent years, the inefficiency of agricultural products circulation is emerged as well as wastage and other issues. While the uncertainty of market demand increases the risk of production and marketing. Agricultural supply chain management could effectively solve some issues of traditional agricultural products in the production and distribution process, which is the primary means of member enterprises improving market competitiveness. Therefore, it is urgent to consider how to improve the quality of agricultural products and the competitiveness of member enterprises. So this paper is aimed to do research on agricultural supply chain under the loss characteristic, where game theory, supply contracts and risk models are applied. The purpose of this paper is to obtain useful conclusions to provide reference ideas for the decision-making of member enterprises, which also provides a theoretical basis to improve quality of agricultural products and efficiencies of agricultural supply chain. The main contents are as follows.Firstly, the paper formulates the objective profit models of agricultural supply chain under transportation at normal temperature and cold chain transportation in the monocyclic agricultural supply chain, which studies the retailer’s and the supplier’s decision of pricing and ordering. The conclusions by analyzing models are following. With the changes of transport costs and the value loss, price elasticity, transport costs and production costs would affect retail prices and wholesale prices. However, the freshness of agricultural products only affects the retailer’s ordering quantity. When the cost of cold chain transportation is controlled in a certain range, the profit of member enterprises would be increased as well as the overall profit of agricultural supply chain. Therefore, it would meet requirements of consumers for better quality of agricultural products, which also improves the efficiency of agricultural supply chain.Secondly, this paper focuses on the huge wastage and deterioration in the transportation and marketing, and discusses the option contracts for optimal ordering strategies of risk-averse retailer and coordination of supply chain with two echelon agricultural supply chain in one period. It constructs the objective decision function of risk-averse retailer described by the conditional value-at-risk under wholesale price contracts and option contracts. Finally the retailer could get the optimal ordering strategies of agricultural products, which achieves Pareto improvement. The conclusion by analyzing models are following, the total quantity of retailer with option contracts including basic ordering and option is more than quantity in wholesale price contracts under the wastage and risk aversion. The maximum profit of retailer with option contracts is more than the other one. The quantity and profit of retailer are negative correlative to the wastage rate and risk aversion. The retailer got greater capacity to bear wastage under option contracts so that agricultural supply chain competitiveness was enhanced, which transformed some cost of the retailer to the supplier and dispersed risk caused by market uncertainty.