Optimal strategies of contract‐farming supply chain under the cooperative mode of bank‐insurance: loan guarantee insurance versus yield insurance

2021 ◽  
Author(s):  
Ligang Shi ◽  
Tao Pang ◽  
Hongjun Peng
Keyword(s):  
Supply Chain ◽  
Optimal Strategies ◽  
Contract Farming ◽  
Loan Guarantee ◽  
Yield Insurance ◽  
Guarantee Insurance

scholarly journals Optimal strategies for a capital constrained contract-farming supply chain with yield insurance

2021 ◽  
Author(s):  
Ligang Shi ◽  
Tao Pang ◽  
Hongjun Peng
Keyword(s):  
Supply Chain ◽  
Risk Aversion ◽  
Unit Area ◽  
Total Yield ◽  
Wholesale Price ◽  
Optimal Strategies ◽  
Farm Size ◽  
Agricultural Product ◽  
Contract Farming ◽  
Yield Insurance

We consider a capital-constrained contract-farming supply chain with a risk-averse farmer and a risk-neutral agro-dealer, where the farmer faces some yield uncertainty that can be covered by insurance. Using the Stackelberg model, we derive the optimal strategies on the insured level, production and wholesale price. The result shows that farmers with low risk aversion tend not to be insured, while those with high risk aversion tend to insure. Further analysis indicates that, as the degree of the farmer's risk aversion increases, the farm size decreases, but the yield per unit area and the wholesale price of the agricultural product increases.  In addition, yield insurance and premium subsidies can lead to a decrease of the yield per unit area. However, the expansion of the farm size can compensate for the inhibitory effect of the decrease of yield per unit area on the total yield, and thus the total yield increases. We also find that when the premium subsidy rate is low, the yield insurance's value to farmers is negative. Moreover, the yield insurance's value to farmers increases with respect to the bank's interest rate.

Operation decision of logistics service supply chain: considering interruption probability in emergencies

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guangsheng Zhang ◽  
Xiao Wang ◽  
Zhiqing Meng ◽  
Qirui Zhang ◽  
Kexin Wu
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Evolutionary Game ◽  
Optimal Strategies ◽  
Optimal Decision ◽  
Content Type ◽  
Logistics Service ◽  
Social Reputation ◽  
Punishment Intensity ◽  
Optimal Decision Making

PurposeTo remedy the inherent defect in current research that focuses only on a single type of participants, this paper endeavors to look into the situation as an evolutionary game between a representative Logistics Service Integrator (LSI) and a representative Functional Logistics Service Provider (FLSP) in an environment with sudden crisis and tries to analyze how LSI supervises FLSP's operations and how FLSP responds in a recurrent pattern with different interruption probabilities.Design/methodology/approachRegarding the risks of supply chain interruption in emergencies, this paper develops a two-level model of single LSI and single FLSP, using Evolutionary Game theory to analyze their optimal decision-making, as well as their strategic behaviors on different risk levels regarding the interruption probability to achieve the optimal return with bounded rationality.FindingsThe results show that on a low-risk level, if LSI increases the degree of punishment, it will fail to enhance FLSP's operational activeness in the long term; when the risk rises to an intermediate level, a circular game occurs between LSI and FLSP; and on a high level of risk, FLSP will actively take actions, and its functional probability further impacts LSI's strategic choices. Finally, this paper analyzes the moderating impact of punishment intensity and social reputation loss on the evolutionary model in emergencies and provides relevant managerial implications.Originality/valueFirst, by taking both interruption probability and emergencies into consideration, this paper explores the interactions among the factors relevant to LSI's and FLSP's optimal decision-making. Second, this paper analyzes the optimal evolutionary game strategies of LSI and FLSP with different interruption probability and the range of their optimal strategies. Third, the findings of this paper provide valuable implications for relevant practices, such that the punishment intensity and social reputation loss determine the optimal strategies of LSI and FLSP, and thus it is an effective vehicle for LSSC system administrator to achieve the maximum efficiency of the system.

scholarly journals Coordinating Pricing and Advertising Decisions for Supply Chain under Consignment Contract in the Dynamic Setting

Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-11 ◽  
Author(s):  
Zhihui Wu ◽  
Lichao Feng ◽  
Dongyan Chen
Keyword(s):  
Supply Chain ◽  
Differential Game ◽  
Optimal Strategies ◽  
Feasible Region ◽  
Comparison Analysis ◽  
On Demand ◽  
Dynamic Setting ◽  
State Dependent ◽  
Differential Game Theory ◽  
Advertising Effort

In this paper, via the differential game method, the problems of the pricing and advertising decision are investigated by considering the effect of number of the platform users on demand. In addition, a novel contract is developed to coordinate the supply chain. Firstly, the optimal strategies of the pricing and advertising are given in the decentralized and centralized scenarios by applying the differential game theory. Also, the comparison analysis concerning on the optimal strategies is proposed in two decision scenarios. It is shown that the centralized scenario could lead to the higher advertising effort of each member and a lower retail price. Next, we construct the state-dependent contract with hope to coordinate the supply chain and then improve the performance of the supply chain. Finally, a numerical example is provided to illustrate the impacts of the price-elasticity index of demand and the effectiveness of the number of retailer’s platform users onto the feasible region of the corresponding contract.

Dendrobiomass Based Power Generation - A PCS (Production to Consumption System) Approach in Tamil Nadu, India

2013 ◽  
Vol 36 (1) ◽  
pp. 31-40
Author(s):  
P. Durairasu ◽  
K. Parthiban
Keyword(s):  
Power Generation ◽  
Supply Chain ◽  
Tamil Nadu ◽  
Power Plants ◽  
The State ◽  
Energy Resources ◽  
Contract Farming ◽  
Research Institutes ◽  
Consumption System ◽  
The Impact

Bioresources particularly the dendro energy resources play significant role in meeting the energy requirement of both domestic and industrial requirements. With the improvement in the technology of conversion and utilization over the last three decades dendro energy resources have reached a status of being considered as commercial energy resources and are prioritized for use in decentralized biomass based power generation projects. However, many biomass based power plants started in the country in general and the state of Tamil Nadu in particular have exhibited various constraints which resulted in uncertained power generation. The reasons are numerous but the key factors are non-availability of quality (High Calorific Value) raw material, fragmented land use pattern, lack of site specific HDSR models, unorganized supply chain and lack of partnership among various stake holders. Against this back drop, the current project has conceived a concept of consortium mode dendro energy farming by comprehensively involving all levels of stake holders viz., research institutes for technology development for dendro energy resources, biomass power plant for assuring minimum support price and to facilitate contract farming, the farmers to grow energy trees identified by the research institutes and adopt precision silvicultural technology and lastly the financial institution to provide credit facilities to energy plantation growers. This consortium has been successfully introduced and implemented in Tamil Nadu in association with Auromira Energy Company Limited which have three Biomass Power Plants with an installed capacity of 35.5 MW. Through this consortium, the research institute has identified high yielding energy rich species and developed HDSR models suitable for varied agroclimatic zones. This consortium has introduced contract dendro energy farming in the state following farm forestry and captive model approaches. The various contract farming models land lease, tree share and income share models have been introduced through this consortium to benefit the growers and the biomass based power plants. In a holistic perspective the consortium has reduced the impact of multipartite supply chain in to a bi-partite, tri-partite and quad partite model supply chain thereby helped to augment the Production to Consumption System (PCS). This model can suitably be modified to meet the wood requirement of other wood based industries. This paper discusses the constraints and the interventions made to augment dendrobioresources to generate power which are from clean and green bioresources.

Hindustan Gum, Jodhpur: Managing Agribusiness Supply Chain Risks

2017 ◽  
pp. 1-16
Author(s):  
R. Rana ◽  
G. Nachiappan ◽  
G. Raghuram ◽  
Jaju Darshit Hariprasad
Keyword(s):  
Supply Chain ◽  
Shale Gas ◽  
Guar Gum ◽  
Market Volatility ◽  
Contract Farming ◽  
The Us ◽  
Supply Chain Risks ◽  
Guar Seed ◽  
Seed Sourcing

Hindustan Gum is an agro-processor in Jodhpur, Rajasthan. It is primarily in the business of processing guar gum. The market volatility in demand and prices have shot up due to the need of guar gum in the new and growing shale gas fracking, primarily in the US. Hindustan Gum has been trying to respond to this by considering options like expansion in processing, and contract farming for guar seed sourcing.

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