Agricultural Product Supply Chain Coordination Affected by Weather and Effort Levels of the Producer and Retailer on Output and Quality

For the problem that output and quality of agricultural products are influenced by uncontrollable weather and controllable effort levels of agricultural producer and retailer during the agricultural production and sales process, an agricultural product supply chain random profit model considering the influence of the effort levels of the producer and retailer and the adverse weather was developed. We analyzed the influence of the adverse weather on the optimal decisions of agricultural producer and retailer. And then we designed a kind of combinational contract by interaction between risk sharing and repurchase. The conclusions show that adverse weather affects the supply chain by influencing both output and quality. Furthermore, the agricultural product supply chain will achieve coordination state under a combinational contract, which ensure the output and quality of agricultural products to some degree, thus ensure a steady supply of agricultural products on the market.