Research On The Production Strategy Of Dangshan County Peach Canned Processing Enterprise

With the development of fruit industry,Dangshan County has become one of the largest areas of peach,and canned peach processing enterprises in Dangshan County are also increasing and growing.Canned peach is a long-lasting and delicious food,which can meet the needs of people who like to eat yellow peach.Peach is mainly used for processing into canned because peach is seasonal and easy to rot.For the same reason,in the picking and processing,the processing enterprises need to invest more human,material and financial resources to ensure that processing enterprises can complete the picking and processing of peach in a shorter period of time,as also extend the storage time of peach.This invest can be expressed by the level of effort.It is a departure from previous production strategies studies of random yield and demand.This paper takes into account canned peach processing enterprises in Dangshan County are raw material-oriented enterprises this feature,and only considers the uncertainty of market demand,then introduces the decision-making variables of effort levels.This paper build models mainly consider the changes in price,effort,and the balance between processing enterprises and growers,The models are to maximize the profits,and then analyze the optimal profit of the processing enterprise varies with the price,the degree of effort,and the development of the market by numerical analysis.The first part of this paper introduces the background of this research,clarifies the research question and reviews relevant literature,which is the basis of this paper.The second part analyzes the current situations and features of canned peach processing enterprises and elaborates the three purchasing modes,The details of the three strategies are as follows.Market purchasing strategy is the elementary form of the relationship between farmers and processing enterprises.At each season of harvesting yellow peaches,processing enterprises purchase farmers' yellow peaches at a time,with no contract signed.The two sides make deals according to their own needs and the price is decides by the local market price.Vertically integrated purchasing strategy is a form where processing enterprises sign a leasing contract with farmers before yellow peaches are ripe.Processing enterprises have the right to decide the species and number of the trees,the standards of planting,and the time of picking.In other words,enterprises buy the management authorities of trees from farmers.In this mode,the production,processing and sale are all incorporated into the operation of processing enterprises.Cooperative strategy is canned peach processing enterprises and growers signed a cooperation agreement and acquisition agreement.Processing enterprises provide technical management of yellow peach tree management and standard requirements,and the cooperation between the various farmers manage peach trees.In addition to paying the agreed purchase price to the cooperatives' growers,processing enterprises also according to the price of canned peach,pay a certain percentage of subsidies to farmers.The third part introduces the decision-making variables of effort levels as peach is an easy rotten fruit and need to be marketed,discusses the production strategy of three kinds of purchasing modes.The optimal solution can be worked out because the objective functions are concave and,this section gets the optimal expressed by parameters and variables and the expected benefits of the processing firm expressed by the effort level.The fourth part conclusion draw a conclusion that profit with the price is increased first and then reduced.The profit of peach canned processing enterprises in market purchasing mode is lower than other models.The cooperative model shows a certain advantage when the subsidy is low,but at the same time it may lead to default risk.The fourth part conclusion draw another conclusion that profit with the effort is increased first and then reduced.The optimal effort level of vertical integration model is the same as that in the market model,and the level of effort in cooperative mode is lower than the other modes.So the vertical integration model is the most likely to use after the development of enterprises.The fifth part offers some advice for canned peach processing enterprises in Dangshan County.