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Ordering Strategy for Fresh Agricultural Products in External Financing Condition

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  • DU, Wenyi

Abstract

This paper firstly introduced the two stage supply chain consisting of single agricultural product producer and fund restraint retailer. Then, it analyzed the influence of bank interest rate on order quantity, wholesale price and expected profit of retailer and producer on the condition of retailer taking external loan strategy. Studies have shown that when the bank interest rate is in (0, 0.9), the order quantity of agricultural products is a decreasing function of bank interest rate; when the bank interest rate is in (0, 1), wholesale price of agricultural products decreases with increase in the bank interest rate; when the bank interest rate is in (0, 0.6), the expected profit of retailer is a decreasing function of bank interest rate; when the bank interest rate is in (0, 1), the expected profit of producer decreases with increase in the bank interest rate. Finally, through simulation calculation examples, it verified suitability of the conclusion, in the hope of providing reference and application value for management of supply chain.

Suggested Citation

  • DU, Wenyi, 2014. "Ordering Strategy for Fresh Agricultural Products in External Financing Condition," Asian Agricultural Research, USA-China Science and Culture Media Corporation, vol. 6(07), pages 1-3, July.
    • Handle: RePEc:ags:asagre:183264
    DOI: 10.22004/ag.econ.183264
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    Keywords

    Agribusiness;

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