The analysis of profit distribution under yield uncertainty for an agriculture supply chain

In two last decades, the analysis of agriculture supply chain (ASC) has been paid attention by academics and practitioners. However, the issue of coordinating ASC is not considered so much where weak collaborations makes lower profits and efficiencies. In this research, a centralized three-level supply chain is analyzed to investigate the possibility of coordination for an ASC. Moreover, the solutions are developed based on joint optimization of the farming size and the agricultural yield per unit. The results show that the joint optimization of the size of land and the obtained yield of the land can be developed for coordination analysis in actual ASC contracts. Future research can check possible mechanisms to coordinate farmers’ decisions by the total supply chain.

Keywords:

Agriculture supply chain (ASC) , Supply chain coordination , Three-level supply chain , yield uncertainty