Analysis of Supply Chain Optimization Model Based on new Cooperative Order Agriculture Model

DATE PUBLISHED
June 12, 2018
SECTION
Articles

Abstract

This paper builds a new order agriculture supply chain model based on the characteristics of a new mode of order agriculture. Firstly, establish an agriculture cooperative in accordance with the development of regional economy and farmers buy a share according to the land area. Then the agriculture cooperative gets profits by signing a contract with agricultural products acquiring company. Part of the income is used to pay dividends for farmers. Besides, to ensure the interests of the farmers, the cooperative will give the farmers a fixed income according to the stock. Based on these, we build a new three-level order agricultural supply chain consisting of a company, a cooperative and farmers. And calculate the income of cooperative under different risk aversions using the measure of conditional value-at-risk (CVaR).Then set up a constraint optimization model, obtain the minimum land area that farmers participate in cooperative can get more interests and the minimum fixed income that cooperative provides by the Lagrange function and relevant KKT conditions.

Keywords

new mode, cooperative mode, supply chain model, CVaR Lagrange function

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Author Details

Bingjie Liu

Yuquan Cui

Hui Su