Fairness Concerns in Retailer-Dominated Agri-Food Supply Chain

doi:10.3969/j.issn.1007-7375.2020.03.005

Abstract

Abstract: The farmers' interests are hurt when the powerful retailers offer a depressed price. To solve this problem, considering weak farmers' self-interest fairness concerns and Nash bargaining fairness concerns, the effect of the farmer's fairness concerns on operation efficiency of agri-food supply chain is studied using Stackelberg game theory. The conclusions indicate that the purchase price under self-interest fairness concerns is highest, and the preservation effort level under Nash bargaining fairness concerns is highest. Whatever fairness concerns the farmer has, the freshness-preservation effort cost sharing contract cannot coordinate supply chain. If the farmer alone bears the freshness-preservation effort cost, Pareto improvement for supply chain system's profit can be implemented just under farmers' Nash bargaining fairness concerns.

Key words: agri-food supply chain, fairness concerns, Pareto improvement

CLC Number:

F253.4

CHEN Jun, WANG Nan, QIU Zhihui. Fairness Concerns in Retailer-Dominated Agri-Food Supply Chain[J]. Industrial Engineering Journal, 2020, 23(3): 38-44.

References

[1] 邓磊, 张希玲, 赵婧洁, 等. 鲜食葡萄产业链利润分配研究—基于河北昌黎的案例分析[J]. 农业现代化研究, 2016, 37(6): 1128-1134
DENG Lei, ZHANG Xiling, ZHAO Jingjie, et al. Analysis of the profit allocation of the supply chain of the table grape industry: a case study of Changli County in Hebei Province[J]. Research of Agricultural Modernization, 2016, 37(6): 1128-1134
[2] CUI T H, RAJU J S, ZHANG Z J. Fairness and channel coordination[J]. Management Science, 2007, 53(8): 1303-1314
[3] CALISKAN-DALISKAN O, CHEN Y, LI J. Channel coordination under fairness concerns and nonlinear demand[J]. European Journal of Operational Research, 2010, 207(3): 1321-1326
[4] 杜少甫, 杜婵, 梁樑, 等. 考虑公平关切的供应链契约与协调[J]. 管理科学学报, 2010, 13(11): 41-48
DU Shaofu, DU Chan, LIANG Liang, et al. Supply chain coordination considering fairness concerns[J]. Journal of Management Science in China, 2010, 13(11): 41-48
[5] 杜少甫, 朱贾昂, 高冬, 等. Nash讨价还价公平参考下的供应链优化决策[J]. 管理科学学报, 2013, 16(3): 68-72
DU Shaofu, ZHU Jiaang, GAO Dong, et al. Optimal decision-making for Nash bargaining fairness concerned newsvendor in two-level supply chain[J]. Journal of Management Science in China, 2013, 16(3): 68-72
[6] NIE N, DU S. Dual-fairness supply chain with quantity discount contracts[J]. European Journal of Operational Research, 2017, 258(2): 491-500
[7] LIU W, WANG D, SHEN X, et al. Transportation research part E[J]. Logistics and Transportation Review, 2018, 116: 102-122
[8] ZHOU Y, BAO B, CHEN X. Co-op advertising and emission reduction cost sharing contracts and coordination in low-carbon supply chain based on fairness concerns[J]. Journal of Cleaner Production, 2016, 133: 402-413
[9] HU B Y, MENG C, XU D, et al. Supply chain coordination under vendor managed inventory-consignment stocking contracts with wholesale price constraint and fairness[J]. International Journal of Production Economics, 2018, 202: 21-31
[10] 易余胤, 梁家密, 谭燕菲. 基于公平偏好的供应链延保服务模型研究[J]. 系统工程理论与实践, 2017, 37(12): 3066-3078
YI Yuying, LIANG Jiami, TAN Yanfei. Extend warranty models of supply chain with fairness preference[J]. Systems Engineering-Theory & Practice, 2017, 37(12): 3066-3078
[11] 汪峻萍, 汪亚. 考虑公平偏好和销售努力的供应链决策模型[J]. 系统管理学报, 2018, 27(2): 374-382
WANG Junping, WANG Ya. Decision model of supply chain considering fairness preference and sale efforts[J]. Journal of Systems & Management, 2018, 27(2): 374-382
[12] HENDRICKSON M K, JAMES H S, KENDALL A, et al. The assessment of fairness in agricultural markets[J]. Geoforum, 2018, 96: 41-50
[13] 孙玉玲, 洪美娜, 石岿然. 考虑公平关切的鲜活农产品供应链收益共享契约[J]. 运筹与管理, 2015, 24(6): 103-111
SUN Yuling, HONG Meina, SHI Kuiran. Revenue sharing contract of supply chain for fresh agricultural products considering fairness concerns[J]. Operations Research and Management Science, 2015, 24(6): 103-111
[14] 张旭, 张庆. 零售商公平关切下的生鲜品供应链协调机制[J]. 系统工程学报, 2017, 32(4): 461-473
ZHANG Xu, ZHANG Qing. Coordination mechanism for fresh agricultural supply chain under the retailer's fairness concerns[J]. Journal of Systems Engineering, 2017, 32(4): 461-473
[15] 张旭, 张庆. 保鲜控制损耗下考虑公平关切的生鲜品供应链协调[J]. 系统科学学报, 2017, 25(3): 112-116
ZHANG Xu, ZHANG Qing. Coordination of fresh agricultural supply chain considering fairness concerns under controlling the loss by freshness-keeping[J]. Journal of Systems Science, 2017, 25(3): 112-116
[16] 冯春, 王雅婷, 于宝, 等. 农产品供应链渠道利润的分配公平协调机制[J]. 系统工程, 2016, 34(12): 103-109
FENG Chun, WANG Yating, YU Bao, et al. Fair distribution mechanism of channel profit in agri-food supply chain[J]. Systems Engineering, 2016, 34(12): 103-109
[17] 冯春, 于宝, 王雅婷, 等. 指数需求下农产品供应链渠道利润的公平分配机制[J]. 系统管理学报, 2018, 27(3): 470-477
FENG Chun, YU Bao, WANG Yating, et al. Fair distribution mechanism of channel profit under exponential demand in agri-food supply chain[J]. Journal of Systems & Management, 2018, 27(3): 470-477
[18] 浦徐进, 朱秋鹰, 曹文彬. 公平偏好视角下的“龙头企业+农户”供应链关系治理研究[J]. 管理工程学报, 2014, 28(3): 120-125
PU Xujin, ZHU Qiuying, CAO Wenbin. The relational governance between Chinese leading agricultural enterprises and their cooperative farmers in the frame of fairness preferences[J]. Journal of Industrial Engineering / Engineering Management, 2014, 28(3): 120-125
[19] 浦徐进, 朱秋鹰, 路璐. 参照点效应、公平偏好和“龙头企业+农户”供应链关系治理[J]. 管理工程学报, 2016, 30(2): 116-123
PU Xujin, ZHU Qiuying, LU Lu. Reference point effect, fairness preference and the relational governance on the supply chain of “leading agricultural enterprises + farmers”[J]. Journal of Industrial Engineering/Engineering Management, 2016, 30(2): 116-123
[20] ZHOU H, LONG L R. Effect of pay strategy on employees’ pay satisfaction: testing and modifying the equity theory[C/OL]. (2008-01-07). http://ieeexplore.ieee.org/document/4422047?arnumber=44422047.