Abstract:

This paper uses grey number to identify the freshness degree of agricultural products. A contract to share profits between the farmer and the retailer is established based on their fresh-keeping efforts and we build their profits model respectively. We use game theory based on grey matrix to analyze their fresh-keeping strategy and get conclusions through numeric example: the retailer tends to take measures to keep products fresh whatever the farmer’s decision while the farmer’s fresh-keeping strategy is influenced by the proportion of profits-sharing. In given conditions, when we set the proportion a specific set, we can find a Nash equation. The result shows that in the end both the farmer and the retailer will keep products fresh.

Key words: Supply Chain, Grey Matrix, Fresh-keeping Efforts