RevenueSharing Contract of AgriFood Supply Chain under Brand Promotion Subsidy

Abstract

Abstract:

As leading enterprises, by themselves, lack strength in agrifood brand promotion, a sequential game model among the government and the supply chain members is developed under the assumption that the government grants financial subsidy supporting brand promotion. Two parameters of optimal subsidy proportion and promotion effort are obtained; subsequently the revenuesharing contract in twolevel agrifood supply chain is studied. The conclusion shows that both supply chain performance and social welfare are improved under financial subsidy and that revenuesharing contract based on promotion cost share, rather than merely revenuesharing contract, can coordinate supply chain.

Key words: supply chain, brand agricultural products, revenuesharing contract, financial subsidy

CHEN Jun1, ZHANG Meng1, CAO Qunhui2. RevenueSharing Contract of AgriFood Supply Chain under Brand Promotion Subsidy[J]. Industrial Engineering Journal , 2016, 19(3): 1-6.

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