Study On Stability And Coordination Of "Linkage Between Farmers And Supermarlets" Supply Chain Based On The Evolutionary Game

In recent years, one of the key feature in the operation mode of China’s agricultural supply chain focuses on how to enhance the integration of its supply chain and coordinating all participants’economic interests. There are two ways in the integration. One of the integration is horizontal integration between farm cooperatives and planting base. The other integration is vertical integration of the leading companies in agricultural supply chain. For example, the establishment of Shouguang Vegetable Center in Shandong Province is horizontal integration, which aims to improve performance metrics and increase transaction frequency in the production and circulation of agricultural products. "Combination agricultural product with chain store" is vertical integration, in which its purpose is to lower transaction cost and uncertainty in production and marketing of agricultural products by reducing intermediate link, enhance the dependency among different entities in the supply chain, and ultimately realize "win-win" situation among chain stores, farmers and consumers.In the supply chain operation, it is difficult to form long-term, stable cooperation relationships among farmers, farm cooperatives and chain stores because of unequal dominant position and unfair profit allocation in the implementation of combination agricultural product with chain store, which embodies link arbitrariness and structure instability among the supply chain members. Effective profit allocation mechanism is the key factor to enhance link stability and cooperation level in different supply chain members and is the basic requirement to realize "win-win" situation in those members. Evolutionary game theory is used in this study. It focuses on cooperation stability, evolutionary trend of cooperation and coordination mechanism in different scenarios of the combination mode. In order to better analyze those questions, this dissertation examines coordination mechanism in closed loop supply chain under combination agricultural product with chain store as well as that in dual channel supply chain under "combination agricultural product with chain store" business mode when facing the Internet economy. The study is carried out in two different theories, classic channel coordination theory based on disruption and coordination mechanism based on evolutionary game theory, which aims to improve and supplement supply chain coordination strategy.There are four main parts in this dissertation, which are shown as follows.Firstly, this study is carried out in two aspects, which analyzes cooperation stability between farmers and farm cooperatives. On one hand, it is based on group action theory and social participation theory. This research classifies diversified rural communities which originates from continuous differentiation in traditional rural communities due to China’s rapid economic development and compares different intrinsic motivation, decision-making mechanism and cooperation stability in different scenarios which include farmers’ action in their own collective action and that in farm cooperatives. On the other hand, this part is based on incomplete contract theory, which models evolutionary cooperation game between farmers and farm cooperatives from the perspective of element contract, analyzes the impact of the profit allocation mechanism on the cooperation between farmers and farm cooperatives and analyzes the cooperation stability. Some suggestions are put forward.Secondly, this study analyzes the game evolution process and the influential factors in the action coordination mechanism between farm cooperatives and chain stores. At the same time, quality investment of agricultural products in farm cooperatives and chain stores is analyzed, which is based on evolutionary game theory. This is because the external effects of quality investment in agricultural products will cause free riding during the course of their production, processing, distributing and selling in farm cooperatives and chain stores. Behavioral strategies and the evolution results between farm cooperatives and chain stores are also analyzed by introducing quality input function.Thirdly, two kinds of research are implemented in this part. On one hand, traditional supply chain contract is used to coordinate agricultural product supply chain with demand disruption. On the other hand, evolutionary game theory is used to coordinate closed loop "agricultural product and chain store" supply chain. The results from the two studies are compared. Furthermore, twelve long-term evolutionary game results from the closed loop "agricultural product and chain store" supply chain are mainly analyzed and their application is summarized.Finally, with the rapid development of the Internet economy, the expansion of production scale in farm cooperatives and the establishment of their online sales channel, farm cooperatives have gradually become agricultural product suppliers nationwide. During the course of cooperation with chain stores whose target market is regional terminal retail market, those farm cooperatives with dual sales channel may become the leader in "agricultural product and chain store" supply chain. Thus, Stackelberg game theory and evolutionary game theory are used to analyze the dual channel supply chain which is composed of cooperatives’direct online sales channel and chain store’s sales channel. This part discusses how to coordinate dual channel agricultural product supply chain under equal channel retail price when production cost is disrupted. Evolutionary path and corresponding coordination mechanism in "agricultural product and chain store" dual channel supply chain when different strategies are adopted by the supply chain members are also discussed. Corresponding coordination strategies and stable evolutionary strategies in the different dual channel supply chains are put forward.