Research on Method of Government Decision-Making of Traceability System Based on Logistic Model

Abstract:

Aimed at the modeling of governments public strategic decision-making, this article proposes a decision-making optimization model for the traceable food system. A welfare function of industry producers, whose parameters would be estimated by actual data gained from market survey and statistics analysis, is established based on the decision-making model in concern of mean value. Finally, the decision-making procedure is converted into a convex optimization problem, which is solved by the inner point method. Investigation shows that the optimal ratio of government subsidy to pay for the technology expenses of every unit is 0.82%, which would lead to an 11.72% increase of expected profit for the enterprise whose decision is led by the traceable system and having large productive scale and high sales prices. Thus the optimal condition can be obtained in the implementation of the traceable system. At the same time, any enterprise with a suitable vertical integration rate and owning quality verification systems will find that it is easier to establish the traceable system.

• Periodical: Applied Mechanics and Materials (Volumes 321-324)
• Pages: 3012-3016
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.321-324.3012
• Online since: June 2013
• Authors: Xuan Xu*, Lin Bo Xie
• Keywords: Convex Optimization, Logistic Model, Parameter Estimation, Regression Analysis, Traceability System

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