Fresh Agricultural Supply Chain Decision Based On Option Contract And Two-phase Pricing

Fresh agricultural product is the basic necessity of our daily life.Besides price,freshness has become an increasingly important factor.But the decentralization of the production of fresh product and the high information asymmetry cause an imbalance between supply and demand in the market.There are always losses caused by unmarketable fruits and vegetables,and high prices caused by shortage,severely affecting the health of the market.Therefore,effective supply chain management becomes imperative.Scholars mainly focused on the fresh agricultural product supply chain coordination,or risk management as they regard fresh agricultural product as general agricultural products,while a little research was done on the risks caused by default in supply chain cooperation.Option contract,an effective risk management tool as it is,is not only flexible but also capable of promoting cooperation,reducing default risk,and increasing supply chain stability.This Thesis introduces option contract into fresh agricultural product supply chain,considers the decision of ordering and manufacturing,and further discusses the phase-based sale which boosts demand and prevents goods from being unmarketable.First of all,based on previous researches,we talk about how freshness impacts demand,and use option contract to study the risk-neutral two-tier supply chain in a single cycle,and build a profit function model which leads to the optimal ordering strategies for retailer and the optimal production strategies for supplier when supplier breaks a contract,and then analyze how changes of parameters such as option pricing influence the ordering strategies and profits of retailer.For more,we consider how fresh preservation influences retailers' orders and profits.Finally,in the context of option contract,considering how two-phase pricing strategy influences the agricultural products supply chain when freshness decreases.And then introduce the cost sharing contract to coordinate the supply chain.This Thesis combines option contract with fresh agricultural product to reduce the supply chain risk.Considering how freshness impacts pricing and demand,retailer would work on preservation and make appropriate sale strategies.This Thesis not only enriches the supply chain research field of fresh agricultural product,but also improves the application scope of supply chain option,and has a certain reference for fresh agricultural product supply chain management and agricultural option market improvement.