Abstract

The paper builds an agricultural supply chain and profit model between single farmer and single supermarket by following the game theory. On the basis of the economic purchasing quantity, it compares the profit difference between the cooperation and non-cooperation of the two parties. Study results demonstrate the profits for the whole supply chain are much bigger than that under non-cooperative circumstances when the two parties cooperate with the condition of negotiated purchasing quantity. An investment example using Shapley Value method is given to distribute the profit of each party under cooperation and prove the effectiveness of this method.

Keywords:

Agricultural supply chain, profit distribution, shapley value,

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Competing interests

The authors have no competing interests.

Open Access Policy

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Copyright

The authors have no competing interests.