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Profit allocation in agricultural supply chain considering risk factors

Author

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  • Haifeng Yao
  • Xiaoxi Ran

Abstract

For agricultural products, 'agricultural super-docking' is the best way to connect farmers and consumers in agricultural supply chain, the major factor of the implementation of 'agricultural super-docking' is a reasonable profit allocation. In this paper, based on traditional Shapley profit allocation method, a modified profit allocation method is proposed considering risk factors for participants in agricultural supply chain. It is more reasonable for profit allocation because there are different risks for different participants in actual agricultural supply chain system. Compared to traditional Shapley profit allocation method, the obtained profits for farmers by using the proposed profit allocation method increase because of his higher risk than cooperatives and supermarkets. More reasonable profit allocation is helpful to heighten the enthusiasm of farmers to join 'agricultural super-docking' and maintain long-term stability of 'agricultural super-docking'.

Suggested Citation

  • Haifeng Yao & Xiaoxi Ran, 2019. "Profit allocation in agricultural supply chain considering risk factors," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 33(3/4), pages 176-188.
    • Handle: RePEc:ids:ijmtma:v:33:y:2019:i:3/4:p:176-188
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    Cited by:

    1. Bo Dai & Fenfen Li & Yunchong Liu, 2022. "A Profit Allocation Mechanism for Customer-to-Manufacturer Platform in e-Commercial Business," SAGE Open, , vol. 12(2), pages 21582440221, May.

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