Abstract: Shelf space is a scarce resource of the supermarkets and fresh convenience stores. It not only has the function of stocking and demonstrating items but also has a substantial impact on the sales level of that item. For the agricultural products, it's estimated that the elasticity of shelf space is 0.57, which means that as the shelf space allocated to the agricultural products is doubled, the sales quantity will increase 57%. Hence, how to allocate the limited shelf space scientifically is an meaningful problem.
A two-echelon agricultural products supply chain consisting of a supplier and a retailer is investigated in which the demand facing the retailer is both price and shelf-space sensitive. As the production of the agricultural products has a long lead time, the retailer can choose to allocate shelf space to the agricultural products before or after the selling season comes. Considering the different shelf space allocation orders, the centralized and decentralized agricultural products supply chain models are built to investigate optimal decisions of shelf space allocation, wholesale price and retail price under different channel power structures, namely supplier Stackelberg and retailer Stackelberg.
By comparing the optimal decisions in the centralized and decentralized agricultural products supply chain, it's found that in the centralized agricultural products supply chain, the retailer charges a lower retail price and allocates more shelf space. For the decentralized agricultural products supply chain, shelf space allocation order has an important effect on the optimal decisions and profits. It's found that no matter in the supplier Stackelberg agricultural products supply chain or the retailer Stackelberg agricultural products supply chain, when the retailer allocates the shelf space before the selling seasons comes, the wholesale price and retail price are higher and the shelf space allocated is less compared to that when the retailer allocates the shelf space after the selling seasons comes. The profits of the supplier, the retailer and the total supply chain are also less when the shelf space is allocated in advance. Therefore, it's more beneficial for the agricultural products supply chain if the shelf space is allocated after the selling seasons comes.
Since the profits of the decentralized supply chains are less than that in the centralized agricultural products supply chain, the revenue and expense sharing contract is designed to coordinate the decentralized agricultural products supply chain. The reasonable range of the parameter is given to ensure that the supplier and retailer both has incentive to accept the contract. Finally, Some numerical experiments are conducted to study the effects of parameter variation on the optimal decisions and profits of the agricultural products supply chain.

Key words: agricultural products supply chain, shelf space, coordination