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Strategy for Income Distribution in Supermarket-Cooperative-Farmer Cooperative Game Under Uncertain Demand

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Proceedings of the Fifth International Forum on Decision Sciences

Part of the book series: Uncertainty and Operations Research ((UOR))

Abstract

Collaboration among supermarket, cooperative and farmer is a market choice in cooperative game where income distribution is a determinant in the decision of long term trilateral cooperation. The uncertain downstream demand impacts on both the total income of the supply chain and the profit each member can get. This paper describes the uncertain demand in fuzzy demand function, sensitivity of the demand amount and price to market in triangle fuzzy variable. It finds that when the three parties collaborate, the total income in the supply chain reaches maximum. Then, a sharply value approach is applied to distribute the total income to the three parties. Lastly, a case study is followed with a maximum total income and fair distribution for the three members. This research can be used to guide profit distribution of three-level supply chain in supermarket, cooperative distributor and farmer.

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Acknowledgements

The author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: This research was sponsored by a project of the planning of “the 12th Five Year Plan” in national science and technology for rural development in China: demonstration of key technology and equipment for safe distribution of agricultural logistics (2015BAD18B05-04) and 2018 Beijing Technology and Business University post graduate student research ability enhancing project.

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Correspondence to Chong-chong Qu .

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Qu, Cc., He, Mk., Wang, J. (2018). Strategy for Income Distribution in Supermarket-Cooperative-Farmer Cooperative Game Under Uncertain Demand. In: Li, X., Xu, X. (eds) Proceedings of the Fifth International Forum on Decision Sciences. Uncertainty and Operations Research. Springer, Singapore. https://doi.org/10.1007/978-981-10-7817-0_21

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