Author(s)

Ying Chen ¹

Affiliation(s)

¹ Beijing Wuzi University 101126, China

Corresponding Author

Ying Chen

ABSTRACT

Based on the mixed option contract, this paper studies the decision-making of shortage averse enterprise or waste averse enterprise and waste averse cooperative respectively. It is proved that the risk preference coefficient has an impact on the option ordering strategy and the total profit of agricultural product supply chain. The results show that when enterprises have shortage aversion preference and cooperatives have waste aversion preference, the option order quantity of enterprises increases with the increase of preference coefficient, and the profit of agricultural product supply chain decreases with the increase of preference coefficient; When both enterprises and cooperatives have waste aversion preference, the option order quantity of enterprises and the profit of agricultural product supply chain decrease with the increase of preference coefficient.

KEYWORDS

Agricultural products supply chain, Option contract, Shortage aversion, Waste aversion

CITE THIS PAPER

Ying Chen, Research on Agricultural Product Supply Chain with Mixed Option Contract Considering Shortage and Waste Aversion Preference. Industrial Engineering and Innovation Management (2022) Vol. 5: 15-19. DOI: http://dx.doi.org/10.23977/ieim.2022.050104.

REFERENCES

[1] Zhang Wenjie, Luo Jianwen Option contract model of supply chain under random output and random demand [J] Journal of management engineering, 2016,30 (03): 121-128
[2] Ling 61, Guo Xiaolong, Hu Zhongju, Liang Liang Risk sharing contract of agricultural product supply chain based on random output and random demand [J] China management science, 2013,21 (02): 50-57
[3] Tang Zhenyu, Luo Xinxing, Chen Xiaohong Research on option based supply chain coordination of fresh agricultural products under two kinds of information asymmetry [J] Forecast, 2019,38 (03): 76-83
[4] Wang Jing, Chen Xu Optimal order of wholesalers of fresh agricultural products considering option contract [J] System engineering theory and practice, 2010,30 (12): 2137-2144
[5] Chen X,Hao G,Li L. Channel coordination with a loss- averse retailer and option contracts[J]. International Journal of Production Economics,2014,150( 4) : 52-57.

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