Academic Journal of Engineering and Technology Science, 2020, 3(1); doi: 10.25236/AJETS.2020.030103.
College of Management, Shanghai University, Shanghai 200444, China
Agricultural production is susceptible to a series of uncertainties, such as the weather, edaphic condition, water resource and pest disasters. Therefore, the supply and demand matching problem is always significant to the companies in the agricultural supply chain. This paper tries to find the solution of this problem. There are one supplier and one manufacturer, where the former decides the acreage, and the latter decides the selling prices and product quality. We establish a mathematical model and obtain some conclusions. Our main findings are as follows. Firstly, when the perfect buyer’s market emerges, the supply chain is hard to run. Then, when the perfect seller’s market emerges, the companies in the supply chain can try their best to produce products and earn excess profits.
agricultural supply chain, quality choice, production quantity, selling price, stochastic productivity
Chenhanzhi Wang. Optimal Production Quantity and Quality Choice in Agricultural Supply Chain. Academic Journal of Engineering and Technology Science (2020) Vol. 3 Issue 1: 14-19. https://doi.org/10.25236/AJETS.2020.030103.
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