Decision Making Of Agricultural Supply Chain Considering Fairness Concerns Under Capital Constraints

As a link between agricultural production and end consumption,the supply chain of agricultural products serves as a medium to achieve the goals of farmers’ income,industrial development and people’s stable life,as well as an important carrier to implement rural revitalization and common prosperity.However,there are still some obstacles in the development of the supply chain of agricultural products,such as: Capital constraints caused by the efforts of agricultural producers to ensure the quality of their products,and unfair distribution of profits led to the behavior of fairness concerns.Based on this,this thesis studies the impact of capital constraints and fairness concerns on agricultural supply chain.This thesis takes the agricultural supply chain led by distributors as the research object,and discusses the agricultural supply chain decision-making considering fairness concerns under capital constraints.The comparison between different financing methods,the influence of fairness concern behavior on the decision-making of supply chain members and the influence on the choice of different financing methods are studied.This thesis first establishes the decision mathematical model of centralization and decentralization of different financing modes of agricultural supply chain members under the condition of fairness and neutrality,and compares the differences of different financing modes.Secondly,the mathematical model of fairness concern behavior of agricultural producers to sellers is studied,and the influence of vertical fairness concern on the optimal decision of agricultural supply chain members is discussed.Then,the mathematical model of sellers’ fairness concern behavior is studied,and the mechanism of lateral fairness concern on agricultural supply chain members’ decision-making is explored.Finally,the difference of different financing methods and the effect of fairness concern behavior on supply chain are verified by numerical simulation.The results show that:(1)financing can promote the market expansion of agricultural products.Although bank interest rates are lower,agricultural producers prefer to trade credit financing.But when the interest rate of transaction credit financing exceeds a certain level,agricultural producers will give up transaction credit financing and choose bank financing.(2)Fairness concerns of agricultural producers can promote income increase in the upstream of agricultural supply chain to a certain extent,but should not exceed the limit,which is not conducive to income increase and the development of agricultural supply chain.The fairness concern behavior of agricultural producers will reduce the profit of sellers and supply chain,but the profit of agricultural producers will not increase all the time,but increase first and then decrease.Compared with bank financing,sellers’ response to agricultural producers’ fairness concern is less in transaction credit financing.(3)Sellers’ horizontal fairness concern is beneficial to the development of agricultural supply chain.Sellers’ fairness concern behavior will increase the profits of agricultural producers and supply chain,but will reduce the profits of all sellers.(4)Both the fairness concern behavior of agricultural producers and the fairness concern behavior of sellers will have a certain influence on the choice of financing methods of agricultural producers,and the critical point of changing the choice of financing methods will decrease with the increase of the fairness concern coefficient.But the difference is that the fairness concern behavior of agricultural producers has a more severe impact on the choice of financing methods of agricultural producers.