Fresh Agricultural Products Supply Chain Coordination and Volume Loss Reduction Based on Strategic Consumer

Fang Qiu, Qifan Hu and Bing Xu
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Fang Qiu: School of Management, Nanchang University, Nanchang 330031, China
Qifan Hu: School of Business Administration, Nanchang Institute of Technology, Nanchang 330099, China
Bing Xu: School of Management, Nanchang University, Nanchang 330031, China

IJERPH, 2020, vol. 17, issue 21, 1-25

Abstract: The reduction of fresh agricultural product volume loss throughout the supply chain system is of high importance due to their perishable nature and impact on society, the economy, and environment. In this paper, three models for two-stage pricing, coordination, and volume loss reduction of the supply chain where third-party logistics service providers and retailers act as a Stackelberg leader and a follower for fresh agricultural products are developed, taking into account both volume loss during transport and quality loss in retail in the presence of strategic consumers. The following results are drawn from the contract for sharing revenues and service costs: (1) The supply chain achieve coordination and the products are healthier for consumers; (2) the coordination leads to a reduction in the three types of volume losses simultaneously only if the lowest marginal costs of the supply chain occur under certain conditions; and (3) the increase in the service sensitivity coefficient, the increase in the freshness discount coefficient under certain conditions, the decrease in the consumer benefit discount coefficient under certain conditions, and the decrease in the price sensitivity coefficient lead to an increase in the profit of the supply chain and a reduction in the three types of volume losses.

Keywords: fresh agricultural products; strategic consumers; supply chain coordination; volume loss (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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