Abstract

The profit allocation as the core factor of the whole agricultural supply chain determines the sustainable development of the whole industry; it will become more complex especially considering the risk of agricultural products. The profit allocation of agricultural supply chain based on Shapley value method of considering the risk factor is studied. The composition of agricultural supply chain is firstly described and the four common risks in the agricultural supply chain are discussed. Then, a new method considering the four risks to allocate the profit in agricultural supply chain is presented. Finally, the presented method of profit allocation is used to solve a profit allocation problem in practice. The results showed the Shapley value of profit allocation after considering the risks is smaller than classic Shapley value and the difference value is caused by the risks. The risks should be eliminated by concerted effort to enhance the stability of the supply chain.

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