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Supply chain coordination of fresh Agri-products based on value loss

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  • Bo Yan

    (South China University of Technology)

  • Jing Fan

    (South China University of Technology)

  • Congyan Cai

    (South China University of Technology)

  • Jing Fang

    (South China University of Technology)

Abstract

Agricultural products are easy to deteriorate in long-distance transportation. Excessive circulation loss not only increases the cost of fresh agri-product supply chain, but also damages the safety and quantity of fresh agri-products. The value loss of fresh agri-products under different transportation modes was studied. This paper analyzes the conditions for the supplier to choose normal temperature transportation and cold chain transportation, and the influence of different transportation modes on the retailer’s decision. The value loss of fresh agri-products under different transportation modes was studied. The conditions of choosing normal temperature transportation or cold chain transportation and the influence of different transportation modes on the retailer’s decision are analyzed. It is found that when the supplier chooses cold chain transportation, the retailer and the whole supply chain can get more profits. The retailer is encouraged to make appropriate supply chain contracts with the supplier, such as the improved revenue-sharing contract or the cost-sharing contract, and the supplier is encouraged to adopt cold chain transportation mode to improve the utilization rate of cold chain transportation of fresh agri-products. Consumers’ sensitivity to freshness has a great impact on the strategies of supply chain members. The contribution of this work also includes reducing the circulation loss of agri-products and providing guidance for the operation and management of agri-products enterprises.

Suggested Citation

  • 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.
  • Handle: RePEc:spr:opmare:v:13:y:2020:i:3:d:10.1007_s12063-020-00162-z
    DOI: 10.1007/s12063-020-00162-z
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    References listed on IDEAS

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    Cited by:

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    17. Wenxue Ran & Yajing Chen, 2023. "Fresh Produce Supply Chain Coordination Based on Freshness Preservation Strategy," Sustainability, MDPI, vol. 15(10), pages 1-24, May.
    18. Qizheng He & Yong Sun & Maoan Yi, 2023. "Evolutionary Game of Pesticide Reduction Management for Sustainable Agriculture: An Analysis Based on Local Governments, Farmers, and Consumers," Sustainability, MDPI, vol. 15(12), pages 1-19, June.
    19. 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.

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