Industrial Engineering Journal

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A Study of the Effect of Agricultural Insurance on the Supply Chain of Fresh Agricultural Products

  

  1. School of Management and Engineering, Zhengzhou University, Zhengzhou 450001, China
  • Online:2016-10-31 Published:2017-02-21

Abstract:

In our country the fresh agricultural products are easy to be affected by natural risks, and partnership is not stable. By constructing the supply chain profit model under natural risks and agricultural insurance, the coordination role of the twopart tariff system on the supply chain and its influence on the members' cooperation are studied. Then the agricultural insurance setting and compensation mechanism are discussed with a comparative analysis of the effect of agricultural insurance on the stability of the supply chain profit and a member of the partnership. Finally, a numerical example is given to illustrate the model results and give the decision. Research shows that the twopart tariff under natural risks can coordinate fresh agricultural products supply chain, but the supply chain cooperation relationship is not stable; and that the introduction of agricultural insurance can not only effectively manage natural risks, but also increase the revenue of the whole supply chain and various members; and that with the rise of coefficient of natural disasters, the supply chain partnership stability under agricultural insurance of fresh agricultural products will decline, but compared with the supply chain system under natural risks, the stability is higher.

Key words: fresh agricultural products, supply chain partnership, two-part tariff, natural risk, agricultural insurance