Research on Coordination of Fresh Agricultural Product Supply Chain considering Fresh-Keeping Effort Level under Retailer Risk Avoidance

Abstract

Considering that the demand for fresh agricultural products is affected by product freshness and price, a two-level fresh agricultural product supply chain decision model consisting of a risk-neutral supplier and a risk-averse retailer is constructed. In order to increase consumer demand for fresh agricultural products, the supplier will make appropriate efforts to preserve the freshness of agricultural products. The optimal fresh-keeping effort level of the supplier and the optimal pricing decision of the retailer under the centralized decision-making and decentralized decision-making modes were studied, respectively; through the design of traditional cost-sharing contracts, traditional cost and revenue-sharing contracts, and cost-sharing and compensation strategies, the supplier was encouraged to improve their fresh-keeping effort. The research shows that the traditional cost-sharing contract and the traditional cost-benefit sharing contract cannot coordinate the supply chain. Under the strategy of cost sharing and compensation, when the amount of compensation meets certain conditions, the coordination of supply chain can be realized. Finally, the important parameters of the model are analyzed by numerical simulation.

Buyer–supplier collaborative cost sharing and the performance of fresh agricultural produce cold chains: a retailer fairness concern perspective

“…Sweeney et al (2018) highlighted the importance for supply chain practitioners to compare their own perspectives on supply chain management and logistics relationships with those of their supply chain partners. Feng et al (2021) proposed a coordination mechanism of fresh agricultural product supply chain considering fresh-keeping effort level under retailer risk avoidance, and the research showed that the traditional cost-sharing contract and the traditional cost-benefit sharing contract can achieve supply chain coordination only under some certain conditions. Hu et al (2021) constructed a framework that leveraged blockchain and edge computing to resolve the trust issue of organic agriculture supply chain.…”

Analysis on the Construction of Sustainable Operation Mechanism of Agricultural Product Supply Chain under the Background of Wireless Communication and Internet of Things

“…For example, in the event of drought and floods, agricultural production will be greatly reduced in a short period of time, and it is difficult to adjust, which can easily lead to fluctuations in agricultural product prices; secondly, our country's agricultural production mainly relies on household production. This market is fragmented, and the market position is low [17]. They cannot obtain timely supply and marketing information and are unable to deal with market risks.…”

Short lifetime product supply chain coordination and social benefit considering cannibalization effect and market segmentation

“…The second area of research is related to the coordination models of short lifetime products SC. In the related literature, different issues such as logistics outsourcing [4], freshness-keeping efforts [3,10,55], cost and loss disruptions [44], and preservation technology investment [28] have been addressed. Furthermore, the risk of unsold products at the end of selling season is studied by some researchers.…”