Research On Contract Coordination Of Fresh Agricultural Products Supply Chain Based On Option Theory

Fresh agricultural products is a typical kind of perishable goods.Along with the characteristic of perishable,its production period is long and sales period is short,and it deserves high demand of freshness.Among them,the features of long production period and short sales period may lead to imbalance of product supply and demand among participants in supply chain.The higher requirements of preservation measures should be put forward according to perishable characteristics of fresh agricultural products.If each decision-making subject only focuses on maximizing its own profit,it will conflict with the target of maximizing profit of supply chain as a whole.Thus,it is necessary to set up corresponding contract coordination mechanism in order to solve the problem of supply and demand imbalance between participants in fresh agricultural products supply chain,and to guarantee the quality of fresh agricultural products.Considering the quantity imbalance in fresh agricultural products supply chain,a secondary supply chain composed of a single supplier and retailer is taken as the research object.On the basis of option contract decision theory,the coordination of fresh agricultural products supply chain considering quantity imbalance between supply and demand is put into research.By comparing the situation of decentralized decision and centralized decision,it is concluded that decentralized decision cannot achieve the optimal supply chain profit,while the option contract can promote cooperation between supplier and retailer.By establishing fresh agricultural products supply chain management model under decision of the option contract,the theory of supply chain coordination and numerical simulations are used to solve the specific options contract parameter values,which provides certain theoretical reference in order to solve the problem of imbalanced problem between supply and demand in fresh agricultural products supply chain.Next,the problem of quality control of fresh agricultural products is taken into consideration,and cost function of preservation for fresh agricultural products is introduced by considering supplier's responsibility for keeping fresh in the process of circulation.By studying decentralized decision and centralized decision under the influence of cost of preservation,it is concluded that traditional option contract ought to be improved by introducing revenue sharing contract,that is,using the method of“option and revenue sharing contract”for making decision.Then the optimal freshness under centralized decision is calculated,which acts as benchmark in contract decision.By using theory of supply chain coordination and numerical simulations,the parameters of option contract and revenue sharing contract are calculated.Meanwhile,the relationship between parameters of revenue sharing contract and option price contract are analyzed.Not only does“option and revenue sharing contract”can ensure quantity of fresh agricultural products supply requirement,but it can guarantee quality of product.On the basis of previous research,the traditional model of option contract is improved in this paper.The corresponding theoretical reference is provided for participants in fresh agricultural products supply chain in aspects of option pricing and incentive of preservation measures.It can strengthen cooperation between supplier and retailer,and it is conducive to individual interests and whole interests of supply chain.