Supply Decision and Coordination of Nutritional Agricultural Products in O2O Market

  • Jiaquan Yang
Keywords: Supply chain management; Vitamin nutrition; Strategic cooperation; Marketing strategy; Risk management

Abstract

The efficiency of agricultural products in the circulation process is of great significance for food nutrition and food safety. Rapid logistics efficiency can effectively reduce the loss of vitamin B and protein in agricultural products, and is more important for the nutrition maintenance of fresh food. Therefore, this paper adopts corporate strategic game theory as the methodology to characterize the Stackelberg game between the producer and the retailer, and studies the optimal strategic decisions and marketing behavior. We consider the potential economic rewards of the strategic cooperation in the O2O market, but also emphasize the importance of the supply risk management and economic efficiency, as the retailer may satisfy its own market demand when has shortage crisis. Therefore, this paper proposes that the market strategy as online channel compensates, taking the maximum economic profit as the principle to implement the decentralized decision-making strategy for surplus inventory. The results suggest taking compensation mechanism as enterprise strategy can coordinate the multi-channel supply chain, improve the retailer's inventory management level, eliminates the channel discrimination of offline retailer in product supply, achieve the Pareto improvement of expected economic rewards for two supply chain members, and promote the collaborative development between online and offline.

Published
2019-11-01