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Coordinating a Green Agri-Food Supply Chain with Revenue-Sharing Contracts Considering Retailers’ Green Marketing Efforts

Author

Listed:
  • Li Cui

    (Business School, Beijing Technology and Business University, Beijing 100048, China)

  • Siwei Guo

    (Business School, Beijing Technology and Business University, Beijing 100048, China)

  • Hao Zhang

    (Business School, Beijing Technology and Business University, Beijing 100048, China)

Abstract

Serious environmental issues have drawn the attention of the agricultural sector. Consumers’ concerns about their personal health and food safety have stimulated the demand for green agri-food, which has also made it important to focus on the green agri-food supply chain to improve the food quality and reduce the associated environmental concerns. This paper discusses coordination issues of the green agri-food supply chain under the background of farmers’ green farming and retailers’ green marketing, and the impact of a revenue-sharing contract on key decisions of supply chain participants. On the basis of the two-echelon green agri-food supply chain composed of a farmer and a retailer, a revenue-sharing contract was established that takes the cost of farmer’s green farming and retailer’s green marketing into account. Through the comparison of the model results, it is concluded that the revenue-sharing contract is beneficial to not only increase the greening level, but also improve both the farmer’s profit and the retailer’s profit. Moreover, the effectiveness of the revenue-sharing contract is positively correlated with consumers’ sensitivity to the greening level. Finally, the conclusion is verified by numerical simulation and some management suggestions are given.

Suggested Citation

  • Li Cui & Siwei Guo & Hao Zhang, 2020. "Coordinating a Green Agri-Food Supply Chain with Revenue-Sharing Contracts Considering Retailers’ Green Marketing Efforts," Sustainability, MDPI, vol. 12(4), pages 1-16, February.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:4:p:1289-:d:318981
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