Decision-making of fresh agricultural product supply chain considering the manufacturer’s fairness concerns

Bo Yan (), Jiwen Wu, Zijie Jin and Shiyou He
Additional contact information
Bo Yan: South China University of Technology
Jiwen Wu: South China University of Technology
Zijie Jin: South China University of Technology
Shiyou He: South China University of Technology

4OR, 2020, vol. 18, issue 1, No 4, 122 pages

Abstract: Abstract By considering the characteristics of fresh agricultural products, this article introduces the behavioral tendency of fairness concerns of manufacturer to examine the fresh agricultural product supply chain and the optimal decision-making problem. The effects of the manufacturer’s behavioral tendency of fairness concerns on the fresh agricultural product supply chain is analyzed within the traditional and Nash bargaining frameworks, respectively. Results indicate that the manufacturer’s behavioral tendencies can reduce the freshness-keeping effort, the freshness of the produce, and the market demand of fresh agricultural products. The optimal wholesale price and retail price also increase or decrease to meet the manufacturer’s fairness concerns. These are determined by the price elasticity and the level of fairness concern, along with the fairness concern condition. Whether within the traditional or Nash bargaining fairness concern framework, market demand declines significantly with the increase in the level of fairness concern, thereby leading to the reduction of the utility of retailer in the supply chain. Therefore, the revenue sharing contract is introduced to achieve the Pareto improvement of both the manufacturer and the retailer.

Keywords: Fresh agricultural products; Level of freshness-keeping effort; Manufacturer’s fairness concerns; Revenue sharing contract; Pareto improvement; 90B50; 91B16 (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)

Downloads: (external link)
http://link.springer.com/10.1007/s10288-019-00409-x Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:aqjoor:v:18:y:2020:i:1:d:10.1007_s10288-019-00409-x

Ordering information: This journal article can be ordered from
https://www.springer ... ch/journal/10288/PSE

DOI: 10.1007/s10288-019-00409-x

Access Statistics for this article

4OR is currently edited by Yves Crama, Michel Grabisch and Silvano Martello

More articles in 4OR from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().