IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v349y2025i2d10.1007_s10479-022-05092-6.html
   My bibliography  Save this article

Two-echelon fresh product supply chain with different transportation modes

Author

Listed:
  • Bo Yan

    (South China University of Technology)

  • Yanping Liu

    (South China University of Technology)

  • Jing Fan

    (South China University of Technology)

Abstract

The fresh product supply chain suffers from the quantity loss and quality loss due to its perishability in long-distance transportation, which affect the health of customers and the sustainable development of supply chain. Using low-cost normal temperature transportation or high-cost cold chain transportation has become a problem for transportation enterprises. This paper aims to investigate the impact of different transportation modes on the supply chain performance. The operation strategies of the supply chain are analyzed under three situations: no coordination contract, wholesale price contract, and revenue-sharing contract. Taking Zhanhua winter jujube as an example, the correctness of theoretical analysis is verified. The main findings are as follows. Supply chain participants, including consumers, can benefit from cold chain transportation. That the cost of cold chain transportation is below the threshold is the basic condition to use cold chain transportation. The retailer has the incentive to encourage the supplier to use cold chain transportation by increasing the wholesale price, but the wholesale price should be set within a certain range. The supplier has the incentive to use cold chain transportation under the revenue-sharing contract, but the revenue-sharing proportion needs to be within a certain range to ensure the retailer's profit. The revenue-sharing contract is superior to the wholesale price contract, and wholesale price contract is superior to no coordination contract.

Suggested Citation

  • Bo Yan & Yanping Liu & Jing Fan, 2025. "Two-echelon fresh product supply chain with different transportation modes," Annals of Operations Research, Springer, vol. 349(2), pages 1379-1402, June.
  • Handle: RePEc:spr:annopr:v:349:y:2025:i:2:d:10.1007_s10479-022-05092-6
    DOI: 10.1007/s10479-022-05092-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-022-05092-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10479-022-05092-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Wu, Desheng, 2013. "Coordination of competing supply chains with news-vendor and buyback contract," International Journal of Production Economics, Elsevier, vol. 144(1), pages 1-13.
    2. Yunlong Yu & Tiaojun Xiao & Zhangwei Feng, 2020. "Price and cold-chain service decisions versus integration in a fresh agri-product supply chain with competing retailers," Annals of Operations Research, Springer, vol. 287(1), pages 465-493, April.
    3. Xiao, Tiaojun & Xu, Tiantian, 2013. "Coordinating price and service level decisions for a supply chain with deteriorating item under vendor managed inventory," International Journal of Production Economics, Elsevier, vol. 145(2), pages 743-752.
    4. Hwang, Hark & Hahn, Kyu Hun, 2000. "An optimal procurement policy for items with an inventory level-dependent demand rate and fixed lifetime," European Journal of Operational Research, Elsevier, vol. 127(3), pages 537-545, December.
    5. Venegas, Bárbara B. & Ventura, José A., 2018. "A two-stage supply chain coordination mechanism considering price sensitive demand and quantity discounts," European Journal of Operational Research, Elsevier, vol. 264(2), pages 524-533.
    6. Chung-Yuan Dye & Chih-Te Yang & Chi-Chuan Wu, 2018. "Joint dynamic pricing and preservation technology investment for an integrated supply chain with reference price effects," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 69(6), pages 811-824, June.
    7. Fang Qiu & Qifan Hu & Bing Xu, 2020. "Fresh Agricultural Products Supply Chain Coordination and Volume Loss Reduction Based on Strategic Consumer," IJERPH, MDPI, vol. 17(21), pages 1-25, October.
    8. Dye, Chung-Yuan & Yang, Chih-Te, 2016. "Optimal dynamic pricing and preservation technology investment for deteriorating products with reference price effects," Omega, Elsevier, vol. 62(C), pages 52-67.
    9. Bo Yan & Jing Fan & Congyan Cai & Jing Fang, 2020. "Supply chain coordination of fresh Agri-products based on value loss," Operations Management Research, Springer, vol. 13(3), pages 185-196, December.
    10. Lin, Qi & Zhao, Qiuhong & Lev, Benjamin, 2020. "Cold chain transportation decision in the vaccine supply chain," European Journal of Operational Research, Elsevier, vol. 283(1), pages 182-195.
    11. Qi Qi & Jing Wang & Jianteng Xu, 2018. "A Dual-Channel Supply Chain Coordination under Carbon Cap-and-Trade Regulation," IJERPH, MDPI, vol. 15(7), pages 1-18, June.
    12. Wu, Qing & Mu, Yinping & Feng, Yi, 2015. "Coordinating contracts for fresh product outsourcing logistics channels with power structures," International Journal of Production Economics, Elsevier, vol. 160(C), pages 94-105.
    13. Yeu-Shiang Huang & Yung-Chen Hsu & Chih-Chiang Fang, 2019. "A study on contractual agreements in supply chains of agricultural produce," International Journal of Production Research, Taylor & Francis Journals, vol. 57(11), pages 3766-3783, June.
    14. Jing Chen & Zhongwei Tian & Wei Hang, 2021. "Optimal ordering and pricing policies in managing perishable products with quality deterioration," International Journal of Production Research, Taylor & Francis Journals, vol. 59(15), pages 4472-4494, August.
    15. Jianhua Ma & Xingzheng Ai & Wen Yang & Yanchun Pan, 2019. "Decentralization versus coordination in competing supply chains under retailers’ extended warranties," Annals of Operations Research, Springer, vol. 275(2), pages 485-510, April.
    16. Herbon, Avi & Levner, Eugene & Cheng, T.C.E., 2014. "Perishable inventory management with dynamic pricing using time–temperature indicators linked to automatic detecting devices," International Journal of Production Economics, Elsevier, vol. 147(PC), pages 605-613.
    17. Ilkyeong Moon & Yoon Jea Jeong & Subrata Saha, 2020. "Investment and coordination decisions in a supply chain of fresh agricultural products," Operational Research, Springer, vol. 20(4), pages 2307-2331, December.
    18. Xue Chang & Jing Li & Daniel Rodriguez & Qun Su, 2016. "Agent-based simulation of pricing strategy for agri-products considering customer preference," International Journal of Production Research, Taylor & Francis Journals, vol. 54(13), pages 3777-3795, July.
    19. Chernonog, Tatyana & Avinadav, Tal, 2019. "Pricing and advertising in a supply chain of perishable products under asymmetric information," International Journal of Production Economics, Elsevier, vol. 209(C), pages 249-264.
    20. Jiang Wu & Jinn-Tsair Teng & Konstantina Skouri, 2018. "Optimal inventory policies for deteriorating items with trapezoidal-type demand patterns and maximum lifetimes under upstream and downstream trade credits," Annals of Operations Research, Springer, vol. 264(1), pages 459-476, May.
    21. Chandra K. Jaggi & Mamta Gupta & Amrina Kausar & Sunil Tiwari, 2019. "Inventory and credit decisions for deteriorating items with displayed stock dependent demand in two-echelon supply chain using Stackelberg and Nash equilibrium solution," Annals of Operations Research, Springer, vol. 274(1), pages 309-329, March.
    22. Liu, Chao & Chen, Weidong & Zhou, Qian & Mu, Jing, 2021. "Modelling dynamic freshness-keeping effort over a finite time horizon in a two-echelon online fresh product supply chain," European Journal of Operational Research, Elsevier, vol. 293(2), pages 511-528.
    23. Hua, Zhongsheng & Zhang, Xuemei & Xu, Xiaoyan, 2011. "Product design strategies in a manufacturer-retailer distribution channel," Omega, Elsevier, vol. 39(1), pages 23-32, January.
    24. Yang, Lei & Tang, Ruihong, 2019. "Comparisons of sales modes for a fresh product supply chain with freshness-keeping effort," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 425-448.
    25. Huanyong Zhang & Huiyuan Xu & Xujin Pu, 2020. "Comparisons of Pre-Sale Strategies for a Fresh Agri-Product Supply Chain with Service Effort," Agriculture, MDPI, vol. 10(8), pages 1-20, August.
    26. Cai, Xiaoqiang & Chen, Jian & Xiao, Yongbo & Xu, Xiaolin & Yu, Gang, 2013. "Fresh-product supply chain management with logistics outsourcing," Omega, Elsevier, vol. 41(4), pages 752-765.
    27. Yunzeng Wang & Li Jiang & Zuo-Jun Shen, 2004. "Channel Performance Under Consignment Contract with Revenue Sharing," Management Science, INFORMS, vol. 50(1), pages 34-47, January.
    28. Guowei Liu & Jianxiong Zhang & Wansheng Tang, 2015. "Joint dynamic pricing and investment strategy for perishable foods with price-quality dependent demand," Annals of Operations Research, Springer, vol. 226(1), pages 397-416, March.
    29. Hsu, P.H. & Wee, H.M. & Teng, H.M., 2010. "Preservation technology investment for deteriorating inventory," International Journal of Production Economics, Elsevier, vol. 124(2), pages 388-394, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fang Qiu & Qifan Hu & Bing Xu, 2020. "Fresh Agricultural Products Supply Chain Coordination and Volume Loss Reduction Based on Strategic Consumer," IJERPH, MDPI, vol. 17(21), pages 1-25, October.
    2. Yunlong Yu & Tiaojun Xiao & Zhangwei Feng, 2020. "Price and cold-chain service decisions versus integration in a fresh agri-product supply chain with competing retailers," Annals of Operations Research, Springer, vol. 287(1), pages 465-493, April.
    3. Luo, Na & Feng, Zhangwei & Liu, Yanping & Wu, Sihong & Liang, Xiaoxiao, 2025. "Tackling food waste: The role of food suppliers’ investment in preservation technology and government intervention," International Journal of Production Economics, Elsevier, vol. 282(C).
    4. Qingren He & Shuting Li & Fei Xu & Wanhua Qiu, 2022. "Deep-Processing Service and Pricing Decisions for Fresh Products with the Rate of Deterioration," Mathematics, MDPI, vol. 10(5), pages 1-19, February.
    5. Ma, Xueli & Wang, Jian & Bai, Qingguo & Wang, Shuyun, 2020. "Optimization of a three-echelon cold chain considering freshness-keeping efforts under cap-and-trade regulation in Industry 4.0," International Journal of Production Economics, Elsevier, vol. 220(C).
    6. Bo Yan & Jing Fan & Congyan Cai & Jing Fang, 2020. "Supply chain coordination of fresh Agri-products based on value loss," Operations Management Research, Springer, vol. 13(3), pages 185-196, December.
    7. Indrani Modak & Sudarshan Bardhan & Bibhas C. Giri, 2025. "Dynamic pricing and preservation strategy for a two-echelon perishable supply chain model with price and time sensitive demand," Operational Research, Springer, vol. 25(3), pages 1-31, September.
    8. Zhinan Li & Qinming Liu & Chunming Ye & Ming Dong & Yihan Zheng, 2022. "Achieving Resilience: Resilient Price and Quality Strategies of Fresh Food Dual-Channel Supply Chain Considering the Disruption," Sustainability, MDPI, vol. 14(11), pages 1-24, May.
    9. Qian Zheng & Manman Wang & Feng Yang, 2021. "Optimal Channel Strategy for a Fresh Produce E-Commerce Supply Chain," Sustainability, MDPI, vol. 13(11), pages 1-24, May.
    10. Zhao, Yan & Li, Yanhui & Yao, Qi & Guan, Xu, 2023. "Dual-channel retailing strategy vs. omni-channel buy-online-and-pick-up-in-store behaviors with reference freshness effect," International Journal of Production Economics, Elsevier, vol. 263(C).
    11. Chaitanyakumar N. Rapolu & Deepa H. Kandpal, 2020. "Joint pricing, advertisement, preservation technology investment and inventory policies for non-instantaneous deteriorating items under trade credit," OPSEARCH, Springer;Operational Research Society of India, vol. 57(2), pages 274-300, June.
    12. Rabbani, Masoud & Pourmohammad Zia, Nadia & Rafiei, Hamed, 2016. "Joint optimal dynamic pricing and replenishment policies for items with simultaneous quality and physical quantity deterioration," Applied Mathematics and Computation, Elsevier, vol. 287, pages 149-160.
    13. Mukunda Choudhury & Sujit Kumar De & Gour Chandra Mahata, 2023. "A pollution-sensitive multistage production-inventory model for deteriorating items considering expiration date under Stackelberg game approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 11847-11884, October.
    14. Liu, Chao & Lv, Jingyu & Hou, Ping & Lu, Danrong, 2023. "Disclosing products’ freshness level as a non-contractible quality: Optimal logistics service contracts in the fresh products supply chain," European Journal of Operational Research, Elsevier, vol. 307(3), pages 1085-1102.
    15. Kartick Dey & Debajyoti Chatterjee & Subrata Saha & Ilkyeong Moon, 2019. "Dynamic versus static rebates: an investigation on price, displayed stock level, and rebate-induced demand using a hybrid bat algorithm," Annals of Operations Research, Springer, vol. 279(1), pages 187-219, August.
    16. Qing Yang & Lei Xiong & Yanfeng Li & Qian Chen & Yijing Yu & Jingyang Wang, 2022. "Contract Coordination of Fresh Agri-Product Supply Chain under O2O Model," Sustainability, MDPI, vol. 14(14), pages 1-20, July.
    17. Winda Narulidea & Ahmad Rusdiansyah & Sri Gunani Partiwi, 2024. "Fresh product supply chain coordination using vendor managed inventory and consignment with revenue sharing over a finite planning horizon," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 23(5), pages 406-422, October.
    18. Aibo Yao & Lin Jiang & Bingxue Guo & Wei Li, 2025. "Subsidy Policy Interactions in Agricultural Supply Chains: An Interdepartmental Coordination Perspective," Agriculture, MDPI, vol. 15(14), pages 1-27, July.
    19. Wenxue Ran & Yajing Chen, 2023. "Fresh Produce Supply Chain Coordination Based on Freshness Preservation Strategy," Sustainability, MDPI, vol. 15(10), pages 1-24, May.
    20. Gabi Hanukov, 2025. "A queueing-inventory system with a repeated-orbit policy during the service," Annals of Operations Research, Springer, vol. 344(2), pages 877-909, January.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:349:y:2025:i:2:d:10.1007_s10479-022-05092-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.