Fresh Agri-Food Supply Chain Retailers and Suppliers Price Game

Abstract

In the supply chain of fresh agricultural foods and food safety, participants for each activity are making their efforts to obtain the maximize benefits, and every interests owners are playing the maximizing benefit Game. As the main parts in the supply chain, suppliers provide their Optimal order quantity and the corresponding punitive cost strategy basing on the least cost target. On the contrary, retailers as the following parts, whose ordering costs and inventory costs are fully controlled by suppliers. Suppliers put the extra supply capacity to get maximum benefit as response, whereas retailers have to obey the decisions made by the suppliers. This paper analyzes two cases in the supply chain: establishing game model with completely independent decision-making and with information sharing. Furthermore, it also take full advantage of Game model to obtain the model between suppliers and retailers in Supply Chain. Finally the paper discusses that when suppliers and retailers achieve the optimal Game effect at the case of cooperation, whether both benefits keep the direct relationship with their investment.