Decisions and Coordination in Fresh Product Supply Chain with Dual Channels Under Government Subsidy

Changwang Zhang (), Hongjie Lan () and Zhengwei Lyu ()
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Changwang Zhang: Beijing Jiaotong University
Hongjie Lan: Beijing Jiaotong University
Zhengwei Lyu: Beijing Jiaotong University

A chapter in LISS 2024, 2025, pp 196-208 from Springer

Abstract: Abstract To ensure the quality of fresh agricultural products, the Chinese government implemented financial subsidies to incentivize farmers to construct refrigerated facilities. Based on this, we consider a dual-channel fresh agricultural product (FAP) supply chain composed of a farmer and a retailer. The retailer sells the products online and offline, and the government provides subsidies to offset the farmer’s freshness-keeping cost. We develop decision models under decentralized and centralized scenarios, compare the optimal solutions with and without government subsidies for each scenario, and propose a contract mechanism to coordinate the decentralized supply chain. Our findings offer valuable insights for farmers and retailers in making optimal decisions with and without government subsidies.

Keywords: dual-channel supply chain; fresh agricultural product; government subsidy; supply chain coordination (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnopch:978-981-96-9697-0_16

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DOI: 10.1007/978-981-96-9697-0_16

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