Model Study On Supply Chain Coordination For Perishable Goods With Insurance Contract

Under the background of China's flourishing supply chain finance,the progress of China's supply chain insurance is not that smooth.There is only one kind of supply chain insurance(i.e.Agricultural Products Price index Insurance),which reflects the innovation deficiency in products of supply chain insurance.In academic circles,the research on supply chain coordination contract has a long history.However,the theoretical studies about supply chain insurance are still rare.Moreover,the existing articles focus on the insurance contract which signed by the supply chain agents,far from a market-oriented insurance product.Due to the previous reasons,on account of the double marginalization problem in a two-echelon supply chain of perishable goods with one retailer and one supplier,this paper proposes to utilize market-oriented insurance mechanism to coordinate the supply chain.This paper hopes to not only broaden the theoretical research border of supply chain coordination contract,but also provide theoretical support for the innovation of supply chain insurance in practice.On the basis of supply chain coordination insurance contract,the present paper considers the asymmetric information in inventory management and builds three models which include risk-neutral agents,risk-averse agents and under emergency risks.Through modeling and numerical studies,this paper investigates the problems about how to utilize market-oriented insurance mechanism to coordinate the supply chain of perishable goods.After that,there come three main conclusions.First,for the three different supply chains of perishable goods in three models,the market-oriented insurance mechanism can coordinate the supply chain,but the constrain conditions of supply chain coordination are different.Second,the supply chain with risk-averse agents is more difficult to coordinate than the risk-neutral supply chain with market-oriented insurance mechanism.Third,introducing insurance mechanism in ordinary situation is a special case of introducing insurance mechanism under emergency risks,and different kinds of emergencies have diverse impacts on supply chain coordination.At last,the paper provides management suggestions and advice for the supply chain agents,insurance companies and government agencies respectively.A two-step strategy to introduce insurance mechanism to coordinate supply chain is also proposed.The first step is that the government agencies utilize premium subsidies,tax breaks and other policy tools to guide the insurance companies to develop new kinds of supply chain insurance product for some important perishable products which are relevant with national economy and people's livelihood.Then,the insurance companies can get involved in the supply chain management progress,cooperate with the supply chain agents and accumulate experience of supply chain management.The second step,after the total cost of inventory management being reduced,the government support can be stopped,thus creating an fair market competition environment and making the supply chain insurance product market-oriented operated.Then,insurance companies can promote the it to cover more categories of perishable goods,and hedge the risks between different kinds of supply chains.