Coordination of Agri-Food Chain with Revenue-Sharing Contract under Stochastic Output and Stochastic Demand
Coordination of Agri-Food Chain with Revenue-Sharing Contract under Stochastic Output and Stochastic Demand
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DOI:
10.1142/s021759591100320x
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发表时间:
2011-11
期刊:
影响因子:
--
通讯作者:
Xia Zhao;Fangwei Wu
中科院分区:
文献类型:
--
作者:
Xia Zhao;Fangwei Wu
Due to the effects of uncertain factors such as seasonal weather and plant/animal diseases, the output of agricultural production is uncertain given certain agricultural inputs. This paper addresses the issue of coordinating agri-food chain with perishable goods by revenue-sharing (RS) contract when both output and demand are random. Following a RS contract, a supplier decides on agricultural input (e) and deliveries all goods with a price (ω) lower than unit production cost to the retailer while a retailer decides on the retail price (p) and return 1–Φ share (percentage) of its revenue to the supplier. For such a contract, the necessary condition of coordinating the chain is that the expected revenue function is concave. Under the channel coordination, the relationship between RS contract parameters ω and Φ as well as the range of Φ are given. For both output and demand random factor with uniform distribution, the concavity of the expected revenue function is presented. A numerical example illustrates the correctness of our analysis. The results of numerical example show that RS contract is able to coordinate the agri-food chain when the expected revenue function is concave. The results also show that the optimal decisions of p and e are closely related to the demand price elasticity and the range of Φ is widened when the expected output increases.