Research on Dual-channel Supply Chain Pricing of Agricultural Products

Abstract

As China's primary industry, agriculture is crucial to China's development, and the vast land and differentiated climate make China's agricultural products form a comprehensive complementarity. The country's agricultural products are diverse, and the supply chain has become a bridge for agricultural products to flow to consumers. In the supply chain of agricultural products, due to its vulnerability characteristics, coupled with climate, pests and other factors, the output of agricultural products is always not fixed, and also forms a distinct size of the year, making it difficult to well meet market demand. With the development of online shopping in recent years, suppliers are no longer bound to traditional offline sales channels and have opened self-operated online sales channels, forming a dual-channel sales situation. This expands their market share and profits, but also leads to a decrease in retailers' market share, resulting in channel conflicts. Therefore, by analyzing the optimal pricing and maximum profit of suppliers and retailers under centralized and decentralized decision-making, this paper introduces the revenue sharing contract model to enable suppliers and retailers to achieve coordination in the dual-channel supply chain, so as to improve the profits of suppliers, retailers and the overall supply chain.