Supply chain coordination of fresh agricultural products based on consumer behavior

Abstract

The circulation efficiency of the fresh agricultural product supply chain is greatly influenced by the purchasing power of end consumers. In this paper, a method to coordinate a fresh agricultural product supply chain with the consideration of strategic consumer behavior is proposed. First, considering the characteristics of the fresh agricultural products supply chain, the utility function of consumers is provided. Second, under the centralized chain, this study focuses on the impact of consumer behavior on supply chain decision-making, quantifies the strategic behavior of strategic consumers as a risk aversion coefficient, and analyzes the impact of consumer risk on supply chain decision-making. Third, two coordination contracts based on revenue sharing and wholesale price are designed for the decentralized decision making in fresh agricultural product supply chain. Finally, through numerical analysis, the sensitivity analysis of some key parameters in the model is carried out.