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Channel choice and coordination of fresh agricultural product supply chain. (English) Zbl 1468.90026

Summary: By constructing a dual-channel fresh agricultural product (FAP) supply chain consisting of a retailer and a supplier, this paper considers the effect of fresh-keeping level on the freshness of perishable products and constructs a time-varying demand function based on freshness. The operating cost of the internet channel to the supplier has also been considered in the model. Optimal pricing strategy and profits of supply chain members under dual channels are investigated respectively in this paper. Comparing the optimal profit under traditional single-channel and dual-channel supply chain, we obtain the condition that the internet operating cost should satisfy. Given the situation where the supplier obtains profit while the retailer loses after the supplier introduced the internet channel, this paper proposes a revenue-sharing contract to make up for the loss of the retailer and achieves a win-win situation. Research shows that in the numerical analysis the supplier’s and the retailer’s profit can only be improved when the operating cost of the internet channel \(c_0\) and revenue-sharing ratio \(\psi\) are within a certain range. When \(\psi \geq 0.4\) and \( 0 \leq c_0 \leq \sqrt{ \frac{2.34 \psi^2 + 1.25 \psi + 7.39}{8.43 \psi^3 + 4.62 \psi^2 + 5.72 \psi + 9.05}} + 8.64\), Pareto improvement will be attained on both sides in the supply chain.

MSC:

90B05 Inventory, storage, reservoirs
90B50 Management decision making, including multiple objectives
91B24 Microeconomic theory (price theory and economic markets)
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