Fresh Agri-Food Supply Chain Retailers and Suppliers Price Game

Abstract

In the supply chain of fresh agricultural foods and food safety,participants for each activity are making their efforts to obtain themaximize benefits, and every interests owners are playing the maximizingbenefit Game. As the main parts in the supply chain, suppliers providetheir Optimal order quantity and the corresponding punitive coststrategy basing on the least cost target. On the contrary, retailers asthe following parts, whose ordering costs and inventory costs are fullycontrolled by suppliers. Suppliers put the extra supply capacity to getmaximum benefit as response, whereas retailers have to obey thedecisions made by the suppliers. This paper analyzes two cases in thesupply chain: establishing game model with completely independentdecision-making and with information sharing. Furthermore, it also takefull advantage of Game model to obtain the model between suppliers andretailers in Supply Chain. Finally the paper discusses that whensuppliers and retailers achieve the optimal Game effect at the case ofcooperation, whether both benefits keep the direct relationship withtheir investment.