Research on the Fresh Agricultural Product Supply Chain Coordination with Supply Disruptions

This paper develops a dynamic model in a one-supplier-one-retailer fresh agricultural product supply chain that experiences supply disruptions during the planning horizon. The optimal solutions in the centralized and decentralized supply chains are studied. It is found that the retailer’s optimal or...

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Main Author: Sun Guohua
Format: Article
Language:English
Published: Wiley 2013-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2013/416790
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author Sun Guohua
author_facet Sun Guohua
author_sort Sun Guohua
collection DOAJ
description This paper develops a dynamic model in a one-supplier-one-retailer fresh agricultural product supply chain that experiences supply disruptions during the planning horizon. The optimal solutions in the centralized and decentralized supply chains are studied. It is found that the retailer’s optimal order quantity and the maximum total supply chain profit in the decentralized supply chain with wholesale price contract are less than that in the centralized supply chain. A two-part tariff contract is proposed to coordinate the decentralized supply chain with which the maximum profit can be achieved. It is found that the optimal wholesale price should be a decreasing piecewise function of the final output. To ensure that the supplier and the retailer both have incentives to accept the coordination contract, a lump-sum fee is offered. The interval of lump-sum fee is given leaving both the supplier and the retailer better off with the two-part tariff contract.
format Article
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institution Kabale University
issn 1026-0226
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language English
publishDate 2013-01-01
publisher Wiley
record_format Article
series Discrete Dynamics in Nature and Society
spelling doaj-art-286030cf34114d178a820d96a53ea94b2025-02-03T01:07:17ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2013-01-01201310.1155/2013/416790416790Research on the Fresh Agricultural Product Supply Chain Coordination with Supply DisruptionsSun Guohua0School of Management Science and Engineering, Shandong University of Finance and Economics, Jinan 250014, ChinaThis paper develops a dynamic model in a one-supplier-one-retailer fresh agricultural product supply chain that experiences supply disruptions during the planning horizon. The optimal solutions in the centralized and decentralized supply chains are studied. It is found that the retailer’s optimal order quantity and the maximum total supply chain profit in the decentralized supply chain with wholesale price contract are less than that in the centralized supply chain. A two-part tariff contract is proposed to coordinate the decentralized supply chain with which the maximum profit can be achieved. It is found that the optimal wholesale price should be a decreasing piecewise function of the final output. To ensure that the supplier and the retailer both have incentives to accept the coordination contract, a lump-sum fee is offered. The interval of lump-sum fee is given leaving both the supplier and the retailer better off with the two-part tariff contract.http://dx.doi.org/10.1155/2013/416790
spellingShingle Sun Guohua
Research on the Fresh Agricultural Product Supply Chain Coordination with Supply Disruptions
Discrete Dynamics in Nature and Society
title Research on the Fresh Agricultural Product Supply Chain Coordination with Supply Disruptions
title_full Research on the Fresh Agricultural Product Supply Chain Coordination with Supply Disruptions
title_fullStr Research on the Fresh Agricultural Product Supply Chain Coordination with Supply Disruptions
title_full_unstemmed Research on the Fresh Agricultural Product Supply Chain Coordination with Supply Disruptions
title_short Research on the Fresh Agricultural Product Supply Chain Coordination with Supply Disruptions
title_sort research on the fresh agricultural product supply chain coordination with supply disruptions
url http://dx.doi.org/10.1155/2013/416790
work_keys_str_mv AT sunguohua researchonthefreshagriculturalproductsupplychaincoordinationwithsupplydisruptions