RETRACTED ARTICLE: Three-tier supply chain on temperature control for fresh agricultural products using new differential game model under two decision-making situations

Ming Luo (), GuoHua Zhou () and Hao Xu ()
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Ming Luo: Southwest Jiaotong University
GuoHua Zhou: Southwest Jiaotong University
Hao Xu: Southwest Jiaotong University

Operations Management Research, 2022, vol. 15, issue 3, No 27, 1028-1047

Abstract: Abstract Freshness makes the supply chain of fresh agricultural products a concern of consumers. This paper aims to point out how temperature control can improve the freshness of fresh agricultural products and the profits of each member and the whole supply chain. This paper constructs the freshness dynamic game model based on temperature control input and the demand function of fresh agricultural products through the differential game method. It also discusses the impact of consumer preference and discount rate on the profits of fresh agricultural products operating enterprises under centralized decision-making and decentralized decision-making. The changes in the profits of the fresh agricultural products supply chain under the coordination mechanism of “mutual cost-sharing with fixed compensation contract”. The results show that under decentralized decision-making when the profit of the fresh produce retailer is higher than the profit of the supplier or third-party logistics service provider, the retailer is willing to bear a certain proportion of the cost. Moreover, consumer preference can help the company to promote the three-level supply chain of fresh agricultural products to realize a virtuous cycle of “increasing investment in temperature control-prolonging the preservation period of fresh agricultural products-strengthening consumer preference-increasing market demand-improving the members and overall profits of the supply chain”. in addition, under certain conditions, the coordination mechanism of “mutual cost-sharing contract with fixed subsidies” can optimize the temperature control investment level and consumer preference of retailers, suppliers and 3PL, and improve the overall supply chain.

Keywords: Fresh produce supply chain; Freshness; Consumer preference; Temperature control input; Supply chain coordination; Three-tier supply chain (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s12063-021-00244-6

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