Research On Coordination And Profit Stability Of Planting Supply Chain With Introducing Agricultural Insurance

Planting industry is the important foundation of China's agriculture and its developmentis related to people's daily life.However,crop production depends on the environmental condition,which leads to a high degree uncertainty of farmers' output because threatened by natural risk such as disasters,accidents or disease.In the same time,the uncertainty of production makes imbalance between supply and demand,hardly to coordinate the benefit relationship of supply chain,and the quantity of sale is too low to obtain stable income.Therefore,in order to make the planting supply chain coordinating and make its profit maintain stabilized under natural risk,the members of the supply chain must take positive strategies to optimize the supply chain operation structure,then to solve the problems of coordination and profit stability.For resolving above problems,this paper attempted to introduce both revenue sharing contract and agricultural insurance into the planting supply chain,and focused on researching agricultural insurance's optimization effectivenesson coordination and profit stability of planting supply chain.First,considering the three-echelon planting supply chain,this paper established the profit model of supply chain and made quantitative expression of ordering policy without agricultural insurance and with agricultural insurance,which provides clew for the following research.Secondly,considering the uncoordinated benefit relationship of supply chain,this paper explained the coordinating mechanism,and then coordinated the planting supply chain by the constraint of revenue sharing contracts.Comparing to coordinated supply chain's profit?ordering and wholesale price decision without agricultural insurance,this paper made conclusions that agricultural insurance have effective optimization on the coordinating stateto a certain extent.Next to the conclusion,a example analysis verified it and inferred the application strategy about agricultural insurance apply into planting supply chain.Thirdly,considering the instable profit,this paper defined the concept of planting supply chain profit's stability,and explained its 3 characteristics,which include forecast profit,profit source and actual profitability.Then by analyzing agricultural insurance's influencing path and its effect on forecast profit,profit source and actual profitability of planting supply chainto work out that the reasonable purchase of agricultural insurance can optimize the agricultural supply chain profit stability to a certain extent,and this conclusion have been further verified by a numerical example analysis,based on which this paper inferred the application strategy about agricultural insurance apply into planting supply chain.Finally,this paper summarizes the research conclusions about agricultural insurance's optimization effectiveness.This paper focused on researching agricultural insurance'seffective optimization on coordination and profit stability of planting supply chain,demonstrated that introducing both revenue sharing contract and agricultural insurance into the planting supply chain can help resolving the problems influenced by natural risk,which shows:First,agricultural insurance optimized the coordinating state of planting supply chain to a certain extent,which enhanced the supply chain's risk management ability and made supply chain more vitality;Second,reasonable purchase of agricultural insurance help to improve the profit and weaken the natural risk,which boost the supply chain applied,increasing profits,enhancing profitability,as a result the profit stability of planting supply chain get optimized.