Research on Coordination of Fresh Produce Supply Chain in Big Market Sales Environment

Abstract EN

In this paper, we propose two decision models for decentralized and centralized fresh produce supply chains with stochastic supply and demand and controllable transportation time.

The optimal order quantity and the optimal transportation time in these two supply chain systems are derived.

To improve profits in a decentralized supply chain, based on analyzing the risk taken by each participant in the supply chain, we design a set of contracts which can coordinate this type of fresh produce supply chain with stochastic supply and stochastic demand, and controllable transportation time as well.

We also obtain a value range of contract parameters that can increase profits of all participants in the decentralized supply chain.

The expected profits of the decentralized setting and the centralized setting are compared with respect to given numerical examples.

Furthermore, the sensitivity analyses of the deterioration rate factor and the freshness factor are performed.

The results of numerical examples show that the transportation time is shorter, the order quantity is smaller, the total profit of whole supply chain is less, and the possibility of cooperation between supplier and retailer is higher for the fresh produce which is more perishable and its quality decays more quickly.