Quality Control Policy and the Choice of Organization Pattern in Alliance of Agriculture and Supermarkets

The alliance of agriculture and supermarkets is a business model of modern agriculture in which supermarkets are the carrier and platform. In fact,better quality control is the basic reason of the appearance of the alliance of agriculture and supermarkets. At the present,there are two organization patterns in the alliance of agriculture and supermarkets: building cooperative farm and building their own farm. The paper points out the optimal pattern under different conditions based on quality control strategy. The results also show that supermarkets prefer to build their own farm when their internal detection cost is larger,otherwise they prefer to build cooperative farm.