The Impacts of Payment Schemes and Carbon Emission Policies on Replenishment and Pricing Decisions for Perishable Products in a Supply Chain

Chun-Tao Chang and Yao-Ting Tseng ()
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Chun-Tao Chang: Department of Statistics, Tamkang University, Tamsui Dist., New Taipei City 251301, Taiwan
Yao-Ting Tseng: Department of Statistics, Tamkang University, Tamsui Dist., New Taipei City 251301, Taiwan

Mathematics, 2024, vol. 12, issue 7, 1-24

Abstract: In the supplier–retailer–consumer system, the retailer’s replenishment and pricing strategies impact the entire transaction process, forming a comprehensive trading market. Suppliers offer advance-cash-credit payments to retailers, while retailers provide customers with cash-credit payment options. In the current health-conscious consumer market, purchasing decisions are influenced not only by commodity prices but also by the freshness of products, particularly perishable goods. Growing awareness of climate change and the advent of carbon emission policies have raised concerns about the environmental costs of business transactions. This study focuses on perishable products whose demand is influenced by both price and freshness. It explores the adoption of various payment methods by suppliers and retailers, as well as the impact of carbon emission cap-and-trade policies or carbon tax policies on management and pricing strategies. Suitable inventory models are established to determine the optimal replenishment and pricing strategies for maximizing the current value of total profit. We illustrate that the current value of total profit demonstrates joint concavity concerning both the selling price and the replenishment time. Finally, we verify the proposed models using numerical examples and present the findings of sensitivity analyses. The findings of this study yield several valuable insights for inventory management of perishable goods.

Keywords: supply chain management; inventory; advance-cash-credit payment; carbon emissions; deteriorating products (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2024
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