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1 – 10 of 17Qi 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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Qinyi Zhang, Wen Cao and Zhichao Zhang
With the rapid growth of the economy, people have increasingly higher living standards, and although people simply pursued material wealth in the past, they now pay more attention…
Abstract
Purpose
With the rapid growth of the economy, people have increasingly higher living standards, and although people simply pursued material wealth in the past, they now pay more attention to material quality and safety and environmental protection. This paper discusses the lack of motivation for investing in fresh-keeping technology for agricultural products by individual members of an agricultural supply chain composed of a supplier and a retailer by means of mathematical models and data simulations and discuss the optimal price-invest strategies under different sales models.
Design/methodology/approach
First, based on the model of no investment by both sides (NN), this paper considers three models: supplier only (MN), retailer only (NR) and cooperative investment (MR). Then, the authors analyze the influence of consumer price sensitivity and freshness sensitivity on the investment motivation of agricultural products under four models. Subsequently, the paper makes a sensitivity analysis of the optimal strategies under several models, and makes a game analysis of the suppliers and retailers of agricultural products. Finally, we conduct an empirical analysis through specific values.
Findings
The results show that (a) when the two sides cooperate, the amount of investment is largest, the freshness of the agricultural products is highest, and the sales volume is greatest; however, when both sides do not invest, the freshness of agricultural products and sales volume are lowest. (b) The price and freshness sensitivity of the consumer have an impact on investment decisions. Greater freshness sensitivity corresponds to a higher investment, higher agricultural product price, greater sales volume, and greater supply chain member income and overall income; however, greater price sensitivity corresponds to a lower investment, lower agricultural product price, lower sales volume, fewer supply chain members and lower overall income. (c) The investment game between the supplier and retailer is not only related to the sensitivity to price and freshness but also to the coordination coefficients of interest. At the same time, the market position of agricultural products should be considered when making decisions. The market share of agricultural products will affect the final game equilibrium and then affect the final benefit of the supply chain and individual members.
Practical implications
These results provide managerial insights for enterprises preparing to invest in agricultural products preservation technology.
Originality/value
At present, the main problem is that member enterprises of agricultural supply chains operate based on their own benefits and are resistant to investing alone to improve the freshness of agricultural products. Instead, they would prefer that other members invest so that they may reap the benefits at no cost. Therefore, the enterprises in each node of the agricultural product supply chain are not motivated enough to invest, and competition and game states are observed among them, and such behavior is definitely not conducive to improving the freshness of agricultural products. However, the current research on agricultural products is more about price, quality and greenness, etc., and there are few studies on agricultural investment. Through the establishment of the model, this paper is expected to provide theoretical suggestions for the supply chain enterprises that plan to invest in agricultural products preservation technology.
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Zilong Song and Shiwei He
There are particularly high fresh agricultural product (FAP) loss rates in actual supply chain operation and the development of FAPs e-commerce is hindered to some extent. The…
Abstract
Purpose
There are particularly high fresh agricultural product (FAP) loss rates in actual supply chain operation and the development of FAPs e-commerce is hindered to some extent. The purpose of this paper is to achieve the coordination of three-layer FAP supply chain and maximize profit through the contracts among the supply chain members.
Design/methodology/approach
A three-layer FAP supply chain that consists of a fresh produce e-commerce enterprise, third-party logistics service provider (TPLSP) and community convenience store under e-commerce environment is considered. New game models are developed and optimal decisions in centralized and decentralized channel are characterized. Different contract coordination mechanisms are designed to improve the supply chain performance. Finally, computational studies are conducted.
Findings
The decentralized supply chain cannot be coordinated by a freshness-keeping cost-sharing contract, and it can be coordinated by a freshness-keeping cost-sharing and revenue-sharing contract. The optimal unit online selling price, unit logistics distribution price, fresh-keeping effort and unit self-collection service price can all be achieved.
Practical implications
The paper provides a practical guideline to managers in fresh produce industry in terms of how to cooperate with other supply chain members so as to maximize total profit and achieve Pareto improvement while also supply the freshest and safest produce to the target market under e-commerce environment.
Originality/value
Few studies have explored the coordination of three-layer FAP supply chain under e-commerce environment with TPLSP and community convenience store’s participation in decisions, especially considering that the market demand for FAPs is affected by freshness and unit online selling price. In this paper, all these scenarios are taken into account and corresponding mathematical models are developed. In particular, different contract coordination mechanisms are designed and examined simultaneously.
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Wucheng Zi, Guodong Li, Xiaolin Li and JiaYu Zhou
This study explores how collaborative cost sharing between the buyer and the supplier in cold chain equipment and marketing and advertising affects the performance of a fresh…
Abstract
Purpose
This study explores how collaborative cost sharing between the buyer and the supplier in cold chain equipment and marketing and advertising affects the performance of a fresh agricultural produce supply chain (FAP-SC).
Design/methodology/approach
We use a contingency approach to modeling different scenarios and analyzing how fairness perception, interplaying with corporative–retailer cost sharing., influences the performance of fresh agricultural produce cold chains.
Findings
The findings of the research highlight the crucial role of the retailer's fairness concern. When the retailer's fairness concern is absent, cost sharing (in cold chain equipment and marketing and advertising) is found to help boost demand and enhance the profits of members of the supply chain; bilateral cost sharing is found to have a more significant impact than unilateral cost sharing. When the retailer's fairness concern is taken into account, however, cost sharing is found to reduce demand at a lower level of fairness coefficient but increases demand at a higher level of fairness coefficient; bilateral cost sharing boosts both demand and profit of the supply chain when the retailer is in a “high concern, high anger” state.
Originality/value
The findings of the research highlight the important role of the buyer's farness perception when supply chain partners adopt collaborative cost sharing programs. This study contributes significantly to research and practice in supply chain collaboration and agricultural cold chain performance.
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Shuang Wu, Bo Li, Weichun Chen and Minxue Wang
This paper analyzes the advance selling and pricing strategies of fresh products supply chain where the e-retailer provides wholesale contract or agency contract to the fresh…
Abstract
Purpose
This paper analyzes the advance selling and pricing strategies of fresh products supply chain where the e-retailer provides wholesale contract or agency contract to the fresh products supplier.
Design/methodology/approach
This paper constructed a two-period sequential-move game of fresh products supply chain members.
Findings
This analysis showed that the supply chain members had different preferences for contracts under different market conditions. The advance selling of fresh products was not a decision of the seller, but also required the support of other supply chain members. And the advance selling strategy was not always beneficial to all supply chain parties. Under the two contracts, there were market conditions in which the profits of supply chain members were Pareto-improved through the implementation of advance selling.
Research limitations/implications
The model presented in this study focuses solely on the context of monopoly, overlooking the competition from alternative suppliers or retailers. Consequently, exploring the competitive landscape within the fresh products supply chain, particularly in relation to pre-sale pricing, emerges as a crucial avenue for further investigation. By employing empirical research methods, valuable insights are gleaned, thereby significantly augmenting the existing body of relevant theories.
Practical implications
The decision to pre-sell fresh products should be based on market conditions. Supply chain members can control production costs and fresh products circulation losses to maximize profits.
Originality/value
From the perspective of game theory, this study analyzed the optimal advance selling and pricing strategies of fresh products supply chain members under two kinds of contracts. These results can provide practical implications for fresh products suppliers and e-retailers.
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Guoli Wang and Chenxin Ma
Motivated by the wide application of procurement strategies in retailing, this paper aims to examine the effect of procurement strategies on decisions and profits and strategic…
Abstract
Purpose
Motivated by the wide application of procurement strategies in retailing, this paper aims to examine the effect of procurement strategies on decisions and profits and strategic inventory (SI) is considered.
Design/methodology/approach
The game-theoretic models are developed under a two-period fresh product supply chain (FSC), and consist of the mode of purchasing products only in the first period without SI (Scenario S), the mode of purchasing products in every period without SI (Scenario T) and the mode of purchasing products in every period with SI (Scenario TS).
Findings
Conducting the calculating and comparing, some major findings can be concluded. In general, two-period purchasing strategies (Scenarios T and TS) promote a higher freshness-keeping effort than the single buying strategy (Scenario S). Regarding the pricing strategy, SI and Scenario S can both contribute to obtaining a lower wholesale price, the retailer's pricing is relatively complicated and hinges on the consumer's sensitivity to freshness-keeping effort and the holding cost. Besides, comparing the sales quantity and the profit, the authors find that Scenario TS stimulates more demands and brings more profits for the manufacturer. However, Scenario TS is not the optimal selection for the reason that SI sometimes hurts the retailer and even the whole supply chain. Whereas, when the holding cost is in a certain range, Scenario TS will lead to a win-win situation.
Originality/value
The main findings of this study can give the enterprises some advice on the procurement strategies of fresh products and the decisions of pricing and the freshness-keeping effort.
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Yanping Liu, Bo Yan and Xiaoxu Chen
This paper studies the optimal decision-making and coordination problem of a dual-channel fresh agricultural product (FAP) supply chain. The purpose is to analyze the impact of…
Abstract
Purpose
This paper studies the optimal decision-making and coordination problem of a dual-channel fresh agricultural product (FAP) supply chain. The purpose is to analyze the impact of information sharing on optimal decisions and propose a coordination mechanism to encourage supply chain members to share information.
Design/methodology/approach
The two-echelon dual-channel FAP supply chain includes a manufacturer and a retailer. By using the Stackelberg game theory and the backward induction method, the optimal decisions are obtained under information symmetry and asymmetry and the coordination contract is designed.
Findings
The results show that supply chain members should comprehensively evaluate the specific situation of product attributes, coefficient of freshness-keeping cost and network operating costs to make decisions. Asymmetric information can exacerbate the deviation of optimal decisions among supply chain members and information sharing is always beneficial to manufacturers but not to retailers. The improved revenue-sharing and cost-sharing contract is an effective coordination mechanism.
Practical implications
The conclusions can provide theoretical guidance for supply chain managers to deal with information asymmetry and improve the competitiveness of the supply chain.
Originality/value
This paper combines the three characteristics that are most closely related to the reality of supply chains, including horizontal and vertical competition of different channels, the perishable characteristics of FAPs and the uncertainty generated by asymmetric demand information.
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This study conducts a systematic literature review of e-tail product returns research. E-tail product returns are essentially acquisition of products that have been sold through…
Abstract
Purpose
This study conducts a systematic literature review of e-tail product returns research. E-tail product returns are essentially acquisition of products that have been sold through purely online or brick-and-click channels and then returned by consumer to business.
Design/methodology/approach
Using a systematic literature review protocol, we identified 75 peer-reviewed articles on e-tail product returns, conducted bibliometric analysis and content analysis of the articles and summarised our findings.
Findings
The findings reveal that the subject of e-tail returns is a new research area; academics have started to investigate several aspects of e-tail returns through different research methodologies and theoretical foundations. Further research is required in leading e-commerce countries and on key areas such as omni-channel returns management, customer satisfaction and service, the impact of resources such as people skills, the benefits of technology and IT systems in managing e-tail returns.
Practical implications
The study offers a summative account of current e-tail knowledge areas, which can serve as a reference guide for e-tailers to develop strategies for more efficient and competitive product returns.
Originality/value
This study contributes theoretically by developing clusters of key themes or knowledge areas about e-tail returns. It also provides a conceptual framework for e-tail returns management, which can be used as a springboard for further empirical research.
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Yuan Shi, Luying Zhou, Ting Qu and Qian Qi
The purpose of this paper is to help online retailers who have an existing reselling channel to figure out the risk of introducing an additional marketplace channel and identify…
Abstract
Purpose
The purpose of this paper is to help online retailers who have an existing reselling channel to figure out the risk of introducing an additional marketplace channel and identify the introduction threshold with an overall consideration to the fulfilment cost and services.
Design/methodology/approach
In order to evaluate the risk of the marketplace channel strategy, this paper develops a Retailer–Stackelberg pricing model. Products are divided into two categories according to different fulfilment cost–value ratio to get a more targeted strategy.
Findings
The results show that the strategy of introducing the marketplace is not always satisfying. Retailers prefer this strategy when they are the prevailing parties in service output. The overall trend is that retailers have to encourage their marketplace partners to improve services for the product with a big fulfilment cost–value ratio. Otherwise, retailers should block the marketplace from entering.
Research limitations/implications
For an intuitive conclusion, this paper assumes that the operating costs (except fulfilment cost) are equal in two channels. This suggests a need to further investigate the impact of other costs. Meanwhile, it would be interesting to examine the competition among suppliers and retailers.
Practical implications
This research provides the suggestions for online retailers who want to introduce and well manage the marketplace channel.
Social implications
This research also helps both academia and industry become more intelligent about the significant influences of category management on channel strategy.
Originality/value
Most prior research is unaware of the risk of introducing a new channel, which also rarely considers how to manage it. This research points out that the effectiveness of this channel strategy differs in different categories. Moreover, retailers can benefit from managing the marketplace’s service output.
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Neha Singh, Rohit Biswas and Mamoni Banerjee
The purpose of this article is to develop relationships between many major issues relevant to the agriculture supply chain.
Abstract
Purpose
The purpose of this article is to develop relationships between many major issues relevant to the agriculture supply chain.
Design/methodology/approach
With the purpose of gaining an all-encompassing understanding of the agriculture supply chain, this work uses 233 filtered research articles and three bibliometric analysis tools, namely VOSviewer, term frequency-inverse document frequency (TF-IDF) and Person correlation. The collected research publications were also catalogued using Preferred Reporting Items for Systematic Reviews and Meta-Analysis (PRISMA).
Findings
Using analytic techniques, a total of 12 keywords were obtained. The study found that agri-products are in dire need of digitisation via Internet of things (IoT) and blockchain due to the usage of economic variables and comprehensive management of total food waste throughout transportation, anchoring quality and the predominant variable.
Research limitations/implications
The study was limited to the Scopus and Web of Science (WoS) indexing in order to assess the viability of the linked idea and problem.
Originality/value
This study aims to generate vital knowledge in the field of horticulture-focused agriculture supply chain based on previous justification and relationship formation.
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