Title: Profit allocation in agricultural supply chain considering risk factors

Authors: Haifeng Yao; Xiaoxi Ran

Addresses: Department of Commerce and Tourism, Chongqing College of Finance and Economics, No. 2, West Section of Changzhou Avenue of Yongchuan District, Chongqing, China ' Department of Planning and Management, Chenghua District Administration of Transportation and Municipal Affairs, No. 4, Wannian Road, Chengdu, China

Abstract: For agricultural products, 'agricultural super-docking' is the best way to connect farmers and consumers in agricultural supply chain, the major factor of the implementation of 'agricultural super-docking' is a reasonable profit allocation. In this paper, based on traditional Shapley profit allocation method, a modified profit allocation method is proposed considering risk factors for participants in agricultural supply chain. It is more reasonable for profit allocation because there are different risks for different participants in actual agricultural supply chain system. Compared to traditional Shapley profit allocation method, the obtained profits for farmers by using the proposed profit allocation method increase because of his higher risk than cooperatives and supermarkets. More reasonable profit allocation is helpful to heighten the enthusiasm of farmers to join 'agricultural super-docking' and maintain long-term stability of 'agricultural super-docking'.

Keywords: Shapley; farming-supermarket direct purchase; supply chain; profit allocation; risk factors.

DOI: 10.1504/IJMTM.2019.101017

International Journal of Manufacturing Technology and Management, 2019 Vol.33 No.3/4, pp.176 - 188

Received: 03 Feb 2018
Accepted: 13 Dec 2018
Published online: 22 Jul 2019 *

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