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Research on Pricing Strategy and Profit-Distribution Mechanism of Green and Low-Carbon Agricultural Products’ Traceability Supply Chain

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  • Jinde Jiang

    (Business School, Nanjing Xiaozhuang University, Nanjing 211171, China)

  • Shuhua Jiang

    (Business School, Nanjing Xiaozhuang University, Nanjing 211171, China)

  • Guoyin Xu

    (Business School, Nanjing Xiaozhuang University, Nanjing 211171, China)

  • Jing Li

    (Dean’s Office, Nanjing Xiaozhuang University, Nanjing 211171, China)

Abstract

In agricultural production, chemical fertilizers and pesticides are being used in large quantities; the residues of these substances have some negative impact on the quality of agricultural products and soil, and they produce a large amount of carbon emissions. Green agricultural products are popular for their low carbon, quality, and safety, and they flow from the production side to consumers through a traceable supply chain. Therefore, ensuring the reliable and stable operation of the traceable supply chain for green, low-carbon agricultural products is an important issue. In view of the difficulty of obtaining information in previous coordination mechanisms in multi-person cooperative games, this article proposes an optimal pricing decision and constructs a profit-distribution model based on an improved Raiffa value to make the profit-distribution mechanism more conducive to the stability and sustainable development of the supply chain, and empirical analysis was carried out. The empirical analysis shows the following: (1) The centralized decision-making selling price of green and low-carbon agricultural products based on the quantitative cost–benefit analysis and demand function can realize the optimal profit of the supply chain. (2) Using the improved Raiffa value, considering the investment cost and risk to allocate the optimal profit of centralized decision-making, optimizes the profit distribution of supply chain members and overcomes the problem of the difficulty in acquiring information in multi-player cooperative games. (3) For investment costs and risks, the corresponding profit-distribution adjustment value weight vector can be obtained using the AHP; for risks that are difficult to quantify, the fuzzy comprehensive evaluation method and the risk-factor-based method can be used to determine the risk coefficient of each member of the supply chain. The optimized profit-distribution mechanism of supply chain members is more reasonable than decentralized decision-making, which has a significant reference for promoting the sustainable development of a traceable supply chain of green and low-carbon agricultural products.

Suggested Citation

  • Jinde Jiang & Shuhua Jiang & Guoyin Xu & Jing Li, 2024. "Research on Pricing Strategy and Profit-Distribution Mechanism of Green and Low-Carbon Agricultural Products’ Traceability Supply Chain," Sustainability, MDPI, vol. 16(5), pages 1-23, March.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:5:p:2087-:d:1350128
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    References listed on IDEAS

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