Title: Research on optimal production decision for 'company + farmer' based on farmland leasing model

Authors: Jianjun Yu; Xiaoyong Huang; Kunye Lyu

Addresses: School of Business Administration, South China University of Technology, Guangzhou 510640, China ' School of Business Administration, South China University of Technology, Guangzhou 510640, China ' Business School, Sun Yat-sen University, Guangzhou, 510275, China

Abstract: To study the problem of the optimal production decision of risk-neutral company and risk-averse farmer under the 'company + farmer' rental model, this paper is based on the traditional newsboy model from the perspective of supply chain coordination. By introducing a leasing model, the optimal production decision of supply chain is analysed in case of considering expected rents. For the case of considering the expected rent, the risk-averse farmer's production decision-making problem is discussed by introducing conditional value-at-risk (CVaR) and the conclusion is drawn that when facing the lower labour costs of agricultural products, the farmer can effectively avoid risks by using rental model under the 'company + peasant household'.

Keywords: farmland leasing mode; expect rents; conditional value-at-risk; CVaR; company + farmer.

DOI: 10.1504/IJIR.2018.093806

International Journal of Inventory Research, 2018 Vol.5 No.2, pp.99 - 111

Received: 26 Oct 2017
Accepted: 10 Nov 2017
Published online: 06 Aug 2018 *

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