Research On Revenue Sharing Contract In The Drop-shipping Agricultural Products Supply Chain Under The Circumstance Of Loss Aversion

The emergence and development of the Internet has accelerated the spread of global information,and drop-shipping is a kind of supply chain mode that is gradually formed with the development of the Internet.Retail platform in drop-shipping mode no longer hold inventory,only by marketing to get demand information of consumer,and send the demand orders to suppliers to let the supplier make production and distribute goods into the hands of the consumers.Drop shipping mode save the intermediate links of the supply chain,reduce the cost of the system,but in the supply chain retailer and supplier in order to maximize their own interests usually reduce the whole supply chain system efficiency.Based on the theory of loss-averse theory and multiple mental accounts,this paper study a revenue sharing contract in the two stage drop-shipping supply chain consisting of loss-averse agricultural products supplier and risk neutral retail electricity.The main conclusions of the study are as follows:First assuming the agricultural prices is determined this article constructs a centralized decision-making supply chain inventory decision model and a decentralized supply chain inventory model in which makes decisions,and studies a drop-shipping agricultural products supply chain revenue sharing contract issue under the loss-averse environment.Research results show that no matter agricultural products supplier get the sharing of surplus agricultural products or not there is a certain proportion of income sharing which makes the centralized decision-making supply chain collaboration;Second article built a bivariate decision-making model under additive price elasticity of demand and multiplicative price elasticity of demand in which considers an centralized decision-making supply chain and a decentralized decision-making supply chain based on pricing and inventory making in the supply chain of loss-averse agricultural products,and studies a revenue sharing contract in drop-shipping agricultural products supply chain under the pricing strategy.Research results show that under these two kinds of models,all proved that there is a certain proportion of revenue sharing contract makes decentralized decision-making supply chain collaboration.The analysis shows that the higher the lossaversion of the agricultural suppliers,the smaller the optimal inventory level;Finally the article constructs a bivariate decision-making model based on sales and inventory in centralized decision-making supply chain and a bivariate decision-making model based on sales and inventory in decentralized decision-making supply chain in which the agricultural price is determined,studies a revenue sharing contract in loss-averse drop-shipping agricultural products supply chain based on sales and inventory strategy.Results indicate that there is a certain share of revenue sharing that enables the revenue-sharing contract to coordinate the decentralize decision-making supply chain.The analysis also shows that the greater the loss aversion of agricultural products suppliers,the smaller the optimal inventory level.