A Bilevel Stochastic Dynamic Programming Model to Assess the Value of Information on Actual Food Quality at Wholesale Markets
Joint Authors
Hou, Xiangyu
Haijema, Rene
Liu, Dacheng
Source
Mathematical Problems in Engineering
Issue
Vol. 2017, Issue 2017 (31 Dec. 2017), pp.1-13, 13 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2017-10-31
Country of Publication
Egypt
No. of Pages
13
Main Subjects
Abstract EN
In the fresh produce wholesale market, the market price is determined by the total demand and supply.
The price is stochastic, and either wholesaler or retailer has few influence on it.
In the wholesaler’s inventory decision, the price’s uncertainty plays an important role as well as the uncertainty from the demand side: the wholesaler makes his decision based on the retailer’s ordering, which is influenced by the stochastic market price and the distribution of the consumer’s demand.
In addition, when at the wholesale stage, the products show a similar quality of similar appearance.
With more efforts being input, the wholesaler could detect and record more additional information than that reflected from the appearance.
Based on this, he can classify the quality into different levels.
No experience shows how the wholesaler could use the underlying quality information and how much this information could improve his profit.
To describe and explore this problem, a bilevel dynamic programming approach is employed.
We evaluate different strategies of using the underlying information, show the features of the optimal policy, develop heuristics, and discuss the influence of factors such as quality and market price.
We also develop the managerial principles for the practical use.
American Psychological Association (APA)
Hou, Xiangyu& Haijema, Rene& Liu, Dacheng. 2017. A Bilevel Stochastic Dynamic Programming Model to Assess the Value of Information on Actual Food Quality at Wholesale Markets. Mathematical Problems in Engineering،Vol. 2017, no. 2017, pp.1-13.
https://search.emarefa.net/detail/BIM-1191806
Modern Language Association (MLA)
Hou, Xiangyu…[et al.]. A Bilevel Stochastic Dynamic Programming Model to Assess the Value of Information on Actual Food Quality at Wholesale Markets. Mathematical Problems in Engineering No. 2017 (2017), pp.1-13.
https://search.emarefa.net/detail/BIM-1191806
American Medical Association (AMA)
Hou, Xiangyu& Haijema, Rene& Liu, Dacheng. A Bilevel Stochastic Dynamic Programming Model to Assess the Value of Information on Actual Food Quality at Wholesale Markets. Mathematical Problems in Engineering. 2017. Vol. 2017, no. 2017, pp.1-13.
https://search.emarefa.net/detail/BIM-1191806
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1191806