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Research on Coordination for Green Supply Chain of Agricultural Products based on Compound Contract

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DOI: 10.23977/emsd.2019.016

Author(s)

Junnan Hua, Xianbo Ding

Corresponding Author

Junnan Hua

ABSTRACT

Considering consumer preference, product greenness, green R&D cost and other factors, this paper studies the coordination of two-level green supply chain composed of a single green agricultural producer and a single green agricultural retailer. The profit models of green supply chain members under different decision-making modes are constructed. According to the comparison of the optimal price and greenness of green agricultural products under different decision-making modes, it is found that cooperation can improve the overall revenue of the supply chain. Therefore, a hybrid contract of "revenue sharing-cost sharing" is constructed to coordinate the green supply chain of agricultural products, and the conditions for the implementation of the hybrid contract are discussed. The results show that the mixed contract can reduce the price of green agricultural products, improve the greenness and increase the market demand of green agricultural products; the "revenue sharing-cost sharing" mixed contract can effectively solve the "dual marginalization" effect, and a reasonable proportion of revenue sharing can enhance the collaborative ability among members of green agricultural products supply chain, and achieve the perfect coordination of green supply chain. Finally, an example is given to verify the effectiveness of hybrid contract in green supply chain of agricultural products.

KEYWORDS

Green Supply Chain, Consumer Demand, Supply Chain Coordination, Compound Contract

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