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Chinese Journal of Management Science ›› 2020, Vol. 28 ›› Issue (2): 153-165.doi: 10.16381/j.cnki.issn1003-207x.2020.02.015

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Smart Supply Chain Decision and Coordination Strategy Considering Poverty Alleviation Concern Based on Manufacture Diseconomies of Scale

WAN Xiao-le1, WANG Qian1, MENG Qing-chun2, DU Yan-wei1   

  1. 1. School of Management, Ocean University of China, Qingdao 266100, China;
    2. School of Management, Shandong University, Jinan 250100, China
  • Received:2018-12-21 Revised:2019-04-12 Online:2020-02-20 Published:2020-03-03

Abstract: With backward production technology and management, enterprises are likely to face the problem of manufacture diseconomies of scale. Farmers' production also has manufacture diseconomies of scale. In this paper, three poverty alleviation models, namely, "famers + smart supply chain platform", "farmers + wholesalers + smart supply chain platform" and "farmers +cooperatives+ smart supply chain platform", are established. Moreover, the supply chain decentralized decisions and the governmental subsidy strategies in different modes are compared. The results demonstrate that wisdom elasticity coefficient of smart supply chain platform can positively influence poor farmers, wholesalers and cooperatives. Under the direct cooperation between farmers and smart supply chain, with the increase of the intelligence cost elasticity coefficient, the profit of smart supply chain platform will decrease. However, the profit will first increase and then decrease after the entrance of cooperative. The overall profit of the supply chain will increase because of consumers' higher poverty alleviation preference. Although both farmers and platforms can get the highest profits in the cooperative mode of "famers + smart supply chain platform", their diseconomies of scale cannot be improved. The model can hardly be implemented in poor areas. In the cooperation model of "farmers+ wholesalers + smart supply chain platform", farmers can get higher profits than wholesalers and smart platforms. However, the overall supply chain profit decreases, and the problem of diseconomies of scale cannot be solved. In the model of "farmers + cooperatives + smart supply chain platform", cooperatives share the scale uneconomical cost with farmers, and the overall profit of supply chain is the optimal in a certain range. The government should continuously increase the subsidies for the construction and operation of the smart platform, and enhance the target incentives to maintain the benefit balance of all main parts of the supply chain. Also, it is necessary to help farmers improve their knowledge and technology level by encouraging the establishment of cooperatives, so that the independent cooperation with smart platforms can be realized.

Key words: Smart supply chain, Poverty alleviation concern, Manufacture diseconomies of scale, Decision, Coordination

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