#5 – Stackelberg noncooperative model of two level supply chain of agricultural products supplier and processor

Cao Gang.  Stackelberg noncooperative model of two level supply chain of agricultural products supplier and processor.  Dynamic Systems and Applications 29 (2020) No. 3, 440-455

https://doi.org/10.46719/dsa20202935

ABSTRACT.
The problem of “agriculture, rural areas and farmers” has existed for a long time in China, which has become a strategic problem in China’s economic development. One of the difficulties for the small agricultural product enterprises engaged in the production and trading of agricultural products to develop and grow is the low efficiency of the supply chain. In view of this, this paper proposes Stackelberg noncooperative model to solve the production and optimization of agricultural supply chain. Stackelberg noncooperative theory is applicable to solve the problem of two-level agricultural products game between processors and suppliers in the case of purchase demand and determination, and seeks to establish a Stackelberg noncooperative model based model to maximize the benefits of the upstream and downstream members of the supply chain. On the basis of case study, this paper applies the model to the actual supply chain problems, and proves that the Stackelberg noncooperative model can find the optimal solution, and provide the best cooperation scheme for the upstream and downstream suppliers and processors of the supply chain. In order to provide ideas for solving the problem of low efficiency of supply chain, and provide reference solutions for other industries.

keywords. Stackelberg model; noncooperative theory; supply chain