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

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...

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Main Authors: Juning Su, Jiebing Wu, Chenguang Liu
Format: Article
Language:English
Published: Wiley 2014-01-01
Series:The Scientific World Journal
Online Access:http://dx.doi.org/10.1155/2014/873980
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author Juning Su
Jiebing Wu
Chenguang Liu
author_facet Juning Su
Jiebing Wu
Chenguang Liu
author_sort Juning Su
collection DOAJ
description 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.
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institution Kabale University
issn 2356-6140
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language English
publishDate 2014-01-01
publisher Wiley
record_format Article
series The Scientific World Journal
spelling doaj-art-4e00b19f2bb842718fa683ccb5b735d72025-02-03T01:32:50ZengWileyThe Scientific World Journal2356-61401537-744X2014-01-01201410.1155/2014/873980873980Research on Coordination of Fresh Produce Supply Chain in Big Market Sales EnvironmentJuning Su0Jiebing Wu1Chenguang Liu2School of Economics and Management, Xi’an University of Technology, Xi’an 710048, ChinaCollege of Public Administration, Zhejiang University, Hangzhou 310058, ChinaSchool of Economics and Management, Xi’an University of Technology, Xi’an 710048, ChinaIn 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.http://dx.doi.org/10.1155/2014/873980
spellingShingle Juning Su
Jiebing Wu
Chenguang Liu
Research on Coordination of Fresh Produce Supply Chain in Big Market Sales Environment
The Scientific World Journal
title Research on Coordination of Fresh Produce Supply Chain in Big Market Sales Environment
title_full Research on Coordination of Fresh Produce Supply Chain in Big Market Sales Environment
title_fullStr Research on Coordination of Fresh Produce Supply Chain in Big Market Sales Environment
title_full_unstemmed Research on Coordination of Fresh Produce Supply Chain in Big Market Sales Environment
title_short Research on Coordination of Fresh Produce Supply Chain in Big Market Sales Environment
title_sort research on coordination of fresh produce supply chain in big market sales environment
url http://dx.doi.org/10.1155/2014/873980
work_keys_str_mv AT juningsu researchoncoordinationoffreshproducesupplychaininbigmarketsalesenvironment
AT jiebingwu researchoncoordinationoffreshproducesupplychaininbigmarketsalesenvironment
AT chenguangliu researchoncoordinationoffreshproducesupplychaininbigmarketsalesenvironment