Risk Decisions for Fresh Agricultural Product Supply Chain Under the Commission Cooperation

A loss risk sharing function based on lead time, freshness and order quantity has been built to coordinate a supply chain with the rebate subsidy contract. With the Conditional Value-at-Risk criterion, we discuss the decision change of the manufacturer and the retailer under risk aversion. Finally, a numerical example tests the effect of loss risk constraint function to improve earnings. This research shows that the loss risk sharing function helps to coordinate the interest allocation of supply chain of agricultural products, and helps the supply chain members make the optimal decision to the circumvent of loss risk preference.