Journal ArticleDOI
Option pricing and coordination in the fresh produce supply chain with portfolio contracts
Chong Wang,Chong Wang,Xu Chen +2 more
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It is shown that the supplier’s optimal option pricing policy is independent to the demand risk and wholesale price, and the circulation loss of fresh produce increases the management risks of the fresh produce supply chain.Abstract:
This paper studies a fresh produce supply chain that consists of a supplier and a retailer in a newsvendor framework. The supplier is the Stackelberg leader and the retailer is the follower. The retailer can obtain products from the supplier by wholesale price and call option portfolio contracts. The fresh produce incurs a circulation loss in quantity during its transportation. The retailer’s optimal ordering policy and the supplier’s optimal pricing policy are derived in the presence of portfolio contracts and circulation loss. It is demonstrated that, as the prices of option increase toward their optimal, the supplier’s expected profit increases whereas the retailer’s expected profit decreases, and the retailer is more sensitive to the price change. It is also found that the fresh produce supply chain can be coordinated by the portfolio contracts, and Pareto improvement for both chain members can also be achieved as compared with the non-coordinated contracts. However, when the supply chain is coordinated, the supplier cannot realize its optimal pricing strategy. Finally, it is shown that the supplier’s optimal option pricing policy is independent to the demand risk and wholesale price, and the circulation loss of fresh produce increases the management risks of the fresh produce supply chain.read more
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Journal ArticleDOI
An analysis of strategies for adopting blockchain technology in the fresh product supply chain
TL;DR: In this article, the strategies for adopting blockchain technology in the fresh product supply chain (FPSC) consisting of a supplier, a third-party logistics service provider (3PL) and an e-commerce platform are investigated.
Journal ArticleDOI
Optimization of a three-echelon cold chain considering freshness-keeping efforts under cap-and-trade regulation in Industry 4.0
TL;DR: In this article, a coordination mechanism was examined by focusing on the freshness-keeping effort of third-party logistics service providers (TPLSPs) in a three-echelon cold supply chain.
Journal ArticleDOI
Entry of online presale of fresh produce: A competitive analysis
Bo He,Xianghua Gan,Kaifu Yuan +2 more
TL;DR: It is found that the store does not necessarily alter its pricing strategy after the online grocery enters the market, and the physical store may fail if the online grocer's delivery cost is not high and if the circulation loss rate of fresh produce is high.
Journal ArticleDOI
Contract design in agriculture supply chains with random yield
TL;DR: By using APSIM, a growth simulation tool, the distribution of yields implied by the grower’s decision on fertiliser application is estimated and hence optimal fertiliser use for risk averse growers is estimated.
Journal ArticleDOI
Mean–variance analysis of option contracts in a two-echelon supply chain
TL;DR: It is found that supply chain coordination is not always achieved, contrasting with the result that properly designed option contracts can always coordinate a supply chain in the absence of risk considerations.
References
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Log-concave probability and its applications
TL;DR: In this article, a series of theorems relating log-concavity and/or logconvexity of probability density functions, distribution functions, reliability functions, and their integrals are presented.
Journal ArticleDOI
Application of planning models in the agri-food supply chain: A review
Omar Ahumada,J. Rene Villalobos +1 more
TL;DR: This paper review the main contributions in the field of production and distribution planning for agri-foods based on agricultural crops and focuses particularly on those models that have been successfully implemented.
Journal ArticleDOI
Coordination and Flexibility in Supply Contracts with Options
TL;DR: It is shown that credit for returns offered by the supplier does not always coordinate the channel and credits for returns are useful only on a subset of the feasibility region under which channel coordination is achievable with linear prices.
Journal ArticleDOI
Quality, safety and sustainability in food distribution : A review of quantitative operations management approaches and challenges
TL;DR: This paper reviews quantitative operations management approaches to food distribution management, and relates this to challenges faced by the industry, with main focus on three aspects: food quality, food safety, and sustainability.
Journal ArticleDOI
Supply Chain Strategies for Perishable Products: The Case of Fresh Produce
TL;DR: In this article, the authors examined supply chain design strategies for a specific type of perishable product (fresh produce) using melons and sweet corn as examples, and showed that the appropriate model to minimize lost value in the supply chain is a hybrid of a responsive model from post-harvest to cooling, followed by an efficient model in the remainder of the chain.