Coordination Mechanism of Agricultural Supply Chain Based on CVaR and Options Contract

In view of the uncertainty of agricultural produce market in the future, an agricultural supply chain coordination model with option contract was constructed. The optimal decision-making behavior of the members of the agricultural supply chain was researched under the conditional value at risk (CVaR) method and the influence of option contract on decision-making of produce and order was analyzed under the different farmer's risk averse degree. The results show that the farmer's output quantity is a decreased function and enterprise's return is an increased function. The "enterprise + farmer" contract-farming supply chain's performance can achieve pareto improvements after introducing the option contract.