Purpose This paper aims to develop a coordination mechanism that can be applied to achieve the channel coordination and information sharing simultaneously in the fresh agri-food supply chain with uncertain demand. It seeks to elucidate how the producer can use an option contract to transfer the risk caused by uncertain demand, impel the retailer to share demand information and improve the performance of supply chain. Design/methodology/approach An option contract model based on the basic model of fresh agri-food supply chain is introduced to compare the production, profit, risk and information sharing condition of the supply chain in different cases. In addition, a case study focusing on the sale of autumn peaches produced by a local producer is investigated, which provides evidence of the applicability of the authors’ approach. Findings The optimal option contract can help the supply chain achieve channel coordination and reach Pareto improvement. In the meantime, such a contract will encourage the retailer to share market demand information with producer spontaneously and help maintain the strategic cooperation between two parties. Research limitations/implications This paper considers a single-producer, single-retailer system and both of them are risk neutral. Practical implications Presented results can be used as suggestions for improving the contract design of fresh agri-food supply chain in China and can also provide references for other countries with similar experiences as China in fresh agri-food production. Originality/value This research introduces the option contract into fresh agri-food supply chain and takes information sharing and the risk caused by uncertain demand into consideration.
Along with economic development and technological innovation, rapid expansion of agricultural machinery has sparked widespread concern. In particular, the superiority of scrapped agricultural machinery recycling and remanufacturing in improving environmental sustainability, economic benefits, and carbon emission reduction has garnered public attention. Based on this reality, this study constructs models for five different agricultural machinery recycling channels according to different actors involved in recovery, dismantling, and remanufacturing. Each model’s equilibrium is determined by mathematical deduction. The applicable condition of each model and the influence of multiple factors are analyzed. The results indicate the following: (i) no single recycling channel is definitely superior to others, and different channels have their own applicable conditions that are influenced by transfer payments, supply chain cooperation, recycling prices, and supply and demand; (ii) cooperative scenarios are more conducive to attracting third-party enterprises to participate to increase supply chain revenue; (iii) rise in recovery and remanufacturing prices may lead to divergence among supply chain parties on channel selection; and (iv) oversupply requires government subsidies to maintain recycling and remanufacturing.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.