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1 – 10 of over 242000Qi Zheng, Petros Ieromonachou, Tijun Fan and Li Zhou
Fresh product loss rates in supply chain operations are particularly high due to the nature of perishable products. The purpose of this paper is to maximize profit through the…
Abstract
Purpose
Fresh product loss rates in supply chain operations are particularly high due to the nature of perishable products. The purpose of this paper is to maximize profit through the contract between retailer and supplier. The optimized prices for the retailer and the supplier, taking the fresh-keeping effort into consideration, are derived.
Design/methodology/approach
To address this issue, the authors consider a two-echelon supply chain consisting of a retailer and a supplier (i.e. wholesaler) for two scenarios: centralized and decentralized decision making. The authors start from investigating the optimal decision in the centralized supply chain and then comparing the results with those of the decentralized decision. Meanwhile, a fresh-keeping cost-sharing contract and a fresh-keeping cost- and revenue-sharing contract are designed. Numerical examples are provided, and managerial insights are discussed at the end.
Findings
The results show that the centralized decision is more profitable than the decentralized decision; a fresh product supply chain (FPSC) can only be coordinated through a fresh-keeping cost- and revenue-sharing contract; the optimal retail price, wholesale price and fresh-keeping effort can all be achieved; and the profit of a FPSC is positively related to consumers’ sensitivity to freshness and negatively correlated with their sensitivity to price.
Research limitations/implications
This research is based on the assumption that demand is relatively stable. It has not addressed when demand is stochastic.
Practical implications
The findings would be useful for managers in fresh food sector in terms of how to deal with suppliers in order to maximize total profit while also provide freshest food to the customers.
Originality/value
Few studies have considered fresh-keeping effort as a decision variable in the modelling of supply chain. In this paper, a mathematical model for the fresh-keeping effort and for price decisions in a supply chain is developed. In particular, fresh-keeping cost-sharing contract and revenue-sharing contract are examined simultaneously in the study of the supply chain coordination problem.
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Ryan Vroegindewey, Robert B. Richardson, Kimberly Chung, Veronique Theriault and David L. Ortega
In Mali, dairy processors mostly use imported powdered milk rather than local fresh milk, constraining the development of a domestic milk sector. We investigate factors motivating…
Abstract
Purpose
In Mali, dairy processors mostly use imported powdered milk rather than local fresh milk, constraining the development of a domestic milk sector. We investigate factors motivating a firm's choice of milk input, to identify measures that can encourage demand for fresh milk.
Design/methodology/approach
We utilize case study data from nine firms that use fresh and powdered milk to varying degrees, and which are representative of dairy processing in Bamako. To model firm motivations, we assess how each input contributes to or detracts from firm competitive advantage, through its influence on cost and differentiation.
Findings
Firms using fresh milk pay a higher input price, incur higher transaction costs and face additional challenges in production and distribution. Firms distinguish themselves from competitors through four potential sources of differentiation: novel product types, quality enhancements, quality-signaling and unique packaging. However, fresh milk firms are less likely to exploit each source of differentiation.
Research limitations/implications
Competitive advantage is a useful framework for understanding firm behavior in developing markets and can be applied in other contexts to strengthen external validity.
Originality/value
The extant economics literature on African dairy development has been surprisingly silent on the threat of import competition. This research is one of the first to investigate this issue in the under-studied middle segment of food value chains.
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Mu-Chen Chen, Chung-Cheng Lu and Yi-Ching Liu
The purpose of this paper is to deal with an optimal consolidation problem for fresh agricultural products (e.g. fruits and vegetables) in a multi-temperature joint distribution…
Abstract
Purpose
The purpose of this paper is to deal with an optimal consolidation problem for fresh agricultural products (e.g. fruits and vegetables) in a multi-temperature joint distribution (MTJD) system that is developed to resolve the challenge of timely delivery of small and diverse shipments in food cold chains.
Design/methodology/approach
An integer programming optimization model is developed to consolidate a set of agricultural shipments with different storage requirements into a number of distinct containers according to the classification criteria. The formulated model for consolidating fresh agricultural products is evaluated using numerical examples.
Findings
Critical factors that affect the quality or shelf life of fresh agricultural products are examined to form the criteria for classifying the storage requirements of these products. The formulated model can minimize the consolidation cost and the loss of product value due to a reduction in shelf life after consolidation.
Research limitations/implications
Although the decision model for product consolidation developed in this paper takes into account practical concerns as much as possible, some additional conditions in the cold chain of fresh fruits and vegetables can be included to further enhance the application of the proposed consolidation model.
Practical implications
Provided that the container environment is appropriately controlled, the shelf life of fresh fruits and vegetables can be maintained during the logistics process. As a result, product quality can be managed to reduce product loss.
Originality/value
This paper adopts temperature, relative humidity and ethylene production, which generally affect the quality and shelf life of fresh agricultural products, as the main factors for determining the product consolidation. It is among the first to deal with the optimal consolidation of fresh agricultural products in the MTJD system with the consideration of product shelf life.
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Vittoria Pilone, Antonio Stasi and Antonio Baselice
In Europe fresh-cut fruit and vegetables, is one of the major growing segments in agro-food sector. Current literature reports a limited number of studies about consumers’…
Abstract
Purpose
In Europe fresh-cut fruit and vegetables, is one of the major growing segments in agro-food sector. Current literature reports a limited number of studies about consumers’ preferences towards these products. In particular, it lacks of studies focussed on fresh-cut salads and based on market data. In this paper, a study on consumer preferences towards the main attributes of Italian fresh-cut salads is proposed. More specifically the investigation is focussed on attributes assessable by consumers before purchase such as assortment, tenderness, product preparation and vegetable variety together with brand, size and type of packaging, presence of organic certification, promotion and product price. The purpose of this paper is to evaluate how much Italian consumers pay for those attributes with the aim to understand how much profitable could be different strategies in the sector.
Design/methodology/approach
The analysis is based on IRI-Infoscan scanner data, consisting of 881 fresh-cut products. The impact of each attributes on pricing is measured by means of a hedonic price model.
Findings
Main results show that, in Italy, fresh-cut salad price is greatly affected by tenderness, product preparation, assortment, brand, presence of organic certification, packaging attributes and vegetable variety.
Practical implications
Findings offer to producers the possibility to set up products by composing the mix of attributes that gives back the highest price. In addition, they provide some insights to define manufacturer’s strategies.
Originality/value
This paper represents a novelty in economic literature because it can be considered an example of consumer preferences analysis towards the different attributes of fresh-cut vegetables based on real market data.
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Martin Hingley, Valeria Sodano and Adam Lindgreen
The purpose of this article is twofold: first, to review the literature in order to assess the opportunities and the possible welfare effects of differentiation strategies in the…
Abstract
Purpose
The purpose of this article is twofold: first, to review the literature in order to assess the opportunities and the possible welfare effects of differentiation strategies in the food market; and second, to analyse the current structure and organisation of the fresh produce market (fruit, vegetable, and salad) in the light of new product procurement, innovation, and differentiation policies carried out by retailers at the global level.
Design/methodology/approach
The paper used a single dyadic case study across two countries (Italy and the UK): the primary producer is engaged in “partner” supply to a principal category management intermediary for channel leading multiple retailers.
Findings
First, equilibrium in differentiated markets is not stable, and a welfare assessment is difficult. Second, a differentiation strategy in the market for fresh produce might benefit retailers more than in other sectors, which seem to be consistent with the theoretical findings. Third, when retailers engage in product differentiation it is more likely that channel relationships shift from collaborative to competitive types, with the power imbalance becoming the disciplinary means by which vertical coordination is achieved and maintained.
Research limitations/implications
This article was based on a single case study.
Practical implications
For suppliers it could be wise to agree to some inequity as the cost of doing business, especially when smart large retailers carry out successfully competitive strategies with positive spill‐over effects on the upstream firms.
Originality/value
Using the industrial economic literature on the effects of differentiation strategies (horizontal and vertical differentiation) on market structure, firms' performance, and welfare effects, this paper analyses case findings from a study in the fresh produce industry and will be of interest to those within the field.
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Jingjing Xing, Jun Zhang and Xue Wang
This study investigates how food safety trust works as a critical moderator in the Chinese online fresh agricultural market based on an extended technology acceptance model.
Abstract
Purpose
This study investigates how food safety trust works as a critical moderator in the Chinese online fresh agricultural market based on an extended technology acceptance model.
Design/methodology/approach
The authors propose a research model that integrates attributes from the technology acceptance model, perceived product quality, logistics service quality, risk, and food safety trust. Structural equation modeling was applied to estimate the causal relationships using data from 851 Chinese customers.
Findings
The results indicated that perceived usefulness, product quality, and logistics service quality significantly enhance Chinese customers' intention to shop online for fresh agricultural products. Further, the positive effects increase when customer trust in food safety changes from low to high. In contrast, perceived risk reduces Chinese customers' willingness to engage in online shopping, but the negative influence is weaker for customers with high trust in food safety than for those with low trust. However, perceived ease of use plays an insignificant role in predicting online purchase intention and the impact does not vary depending on food safety trust.
Originality/value
This study suggests managers should consider the important moderating role of food safety trust to make effective strategies for fresh agricultural e-commerce development in China.
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The purpose of this paper is to define the sustainability attributes of frozen and fresh food consumption in a typical household. The reason for writing this paper is that food…
Abstract
Purpose
The purpose of this paper is to define the sustainability attributes of frozen and fresh food consumption in a typical household. The reason for writing this paper is that food preservation is often overlooked when developing sustainability strategies.
Design/methodology/approach
This study uses established carbon footprint data for specific food types and consumer survey data to determine how consumers use fresh and frozen products in the home. Consumption and waste data for 83 households was obtained using a combination of narrative and graphical association questions.
Findings
The results show greenhouse gas emissions associated with a diets containing frozen food are reduced because 47 per cent less frozen foods is wasted as compared to fresh foods with a typical household wasting 10.4 per cent of fresh food and 5.9 per cent frozen food.
Research limitations/implications
This research has highlighted the importance of understanding the waste impacts of catering and food service consumption outside the home.
Practical implications
This research will guide future product development for frozen foods with regard to dietary planning and portion control.
Social implications
The cost and sustainability benefits of meal planning are identified and these will inform policy making and education to improve dietary choices.
Originality/value
This work extends the scope of current consumer surveys that assess quality, value and taste attributes to sustainability criteria and it will enable collaboration between fresh and frozen product categories to deliver sustainable dietary options.
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Lingfang Li, Yangbo Chen and Yi Liu
“Originally as a business providing community life services since its founding in 2017, Dingdong (Cayman) has transformed itself into a fresh e-commerce company. After making…
Abstract
“Originally as a business providing community life services since its founding in 2017, Dingdong (Cayman) has transformed itself into a fresh e-commerce company. After making adjustments to its business model and operating strategy for three times, Dingdong (Cayman) has completed the strategic transition from grocery surrogate shopping to comprehensive self-operation, and built its own commercial fortress. In 2019, the total revenue of the company was five billion yuan. Upon the outbreak of COVID-19, its monthly revenue exceeded 1.2 billion yuan in February 2020, and the year's total revenue was expected to hit 15∼18 billion yuan. To date, Dingdong (Cayman) has formed a supply chain fully based on digital operation and built a commercial fortress in the fresh e-commerce industry. Despite this, its future prospect is not free from challenge. This case mainly deals with the following questions: How about the strategic positioning and core competitiveness of Dingdong (Cayman) in its early days? In the process of rapid expansion, what are the advantages and problems in its business model? How can the digitally operated supply chain support its continuous expansion in the future?”
Themistoklis Altintzoglou, Bjørg Helen Nøstvold, Mats Carlehög, Morten Heide, Jens Østli and Finn‐Arne Egeness
The purpose of this study was to investigate the effect of information on English consumers' evaluation of fresh and thawed cod fillets which in English retail stores is referred…
Abstract
Purpose
The purpose of this study was to investigate the effect of information on English consumers' evaluation of fresh and thawed cod fillets which in English retail stores is referred to as “chilled” seafood.
Design/methodology/approach
After the exploration of consumers' impressions of thawed fish, this study followed a pair‐wise comparison approach in a central location consumer test. Fish fillets were evaluated on liking, smell and texture by means of a questionnaire with additional behavioural and attitudinal questions.
Findings
This study showed that consumers in England may prefer thawed over fresh cod fillets without information. However, consumers' evaluations increased for labelled fresh cod fillets and decreased for thawed. Finally, consumers reported positive expectations about fillets labelled “fresh” or “frozen at sea”.
Research limitation/implications
This study involved testing cod fillets in a central location test. Consumers do not usually evaluate cod fillets in this way in their daily life. The quality of the two types of fillets made especially for this test may vary compared to the ones usually sold and consumed.
Practical implications
This study can inform producers and retailers about what to expect by means of sales of fresh and thawed cod products with or without information.
Social implications
It was shown that consumers are positively influenced by information and are willing to consume more fish if they know that the fish is fresh or thawed properly.
Originality/value
This is the first paper to present English consumers' evaluations of thawed cod.
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Claudia Bazzani and Maurizio Canavari
The research presented in this paper aims at giving a forecasting scenario of the fresh tomato industry in Italy and in Germany, through the analysis of the different drivers…
Abstract
Purpose
The research presented in this paper aims at giving a forecasting scenario of the fresh tomato industry in Italy and in Germany, through the analysis of the different drivers which influence the trends of the fresh tomato market.
Design/methodology/approach
The Delphi method was applied in order to obtain judgments of different experts regarding the driving forces of the fresh tomato industry in Italy and in Germany. A total of 14 experts of the fresh vegetables market participated in a three‐rounds survey; a qualitative analysis of experts' judgments drew to a possible future of the fresh tomato industry.
Findings
From the results it is possible to conclude that the service in the offer of the products will mostly influence the trend of the fresh tomato industry; this includes marketing, communication, quality certifications, special packaging (as ready to eat products). Furthermore variety selection and typicality of the product will play, as well, a fundamental role in the market trend of the fresh tomato.
Research limitations/implications
The research is based on a small sample of experts, using a qualitative approach. Therefore these findings may strongly depend on the choice of the subjects.
Practical implications
The results may offer useful suggestions to managers and practitioners on the most promising strategies for the future.
Originality/value
On the methodological side, this study represents a useful contribution to qualitative food research, since the Delphi method approach was rarely used in the past. In addition, it has not been previously used in forecasting a possible scenario in the fresh vegetables industry.
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