IDEAS home Printed from https://ideas.repec.org/a/taf/uiiexx/v45y2013i1p53-67.html
   My bibliography  Save this article

Designing supply contracts for perishable goods with two periods of shelf life

Author

Listed:
  • Yenho Chung
  • Feryal Erhun

Abstract

A critical feature of a perishable product is its age. When “old” units are on the shelf along with “young” units, a supplier who is designing a contract for a buyer must consider the product’s age. While numerous papers in the contracting literature have discussed channel coordination, none have studied the case in which the supplier needs to account for both old and young units. This article considers a supply chain for perishable goods with a two-period shelf life to address the aforementioned supplier’s problem. A two-level wholesale price contract, a two-level buy-back contract, and a buy-back contract with channel rebates are studied. The channel-coordinating conditions under each of these contracts are demonstrated. Although all three contracts can coordinate the channel, potential implementation issues with each of them are discussed and guidance for suppliers who want to design a contract when selling both old and young units is provided.

Suggested Citation

  • Yenho Chung & Feryal Erhun, 2013. "Designing supply contracts for perishable goods with two periods of shelf life," IISE Transactions, Taylor & Francis Journals, vol. 45(1), pages 53-67.
    • Handle: RePEc:taf:uiiexx:v:45:y:2013:i:1:p:53-67
    DOI: 10.1080/0740817X.2012.654847
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/0740817X.2012.654847
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/0740817X.2012.654847?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 search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Civelek, Ismail & Karaesmen, Itir & Scheller-Wolf, Alan, 2015. "Blood platelet inventory management with protection levels," European Journal of Operational Research, Elsevier, vol. 243(3), pages 826-838.
    2. Avinadav, Tal, 2020. "The effect of decision rights allocation on a supply chain of perishable products under a revenue-sharing contract," International Journal of Production Economics, Elsevier, vol. 225(C).
    3. Zhou, Quan Spring & Olsen, Tava Lennon, 2017. "Inventory rotation of medical supplies for emergency response," European Journal of Operational Research, Elsevier, vol. 257(3), pages 810-821.
    4. Mohamadi, Navid & Transchel, Sandra & Fransoo, Jan C., 2025. "Coordinate or collaborate? Reducing food waste in perishable-product supply chains," Other publications TiSEM 358dfa25-d5b7-4943-b913-7, Tilburg University, School of Economics and Management.
    5. Kebing Chen & Jing‐Sheng Song & Jennifer Shang & Tiaojun Xiao, 2022. "Managing hospital platelet inventory with mid‐cycle expedited replenishments and returns," Production and Operations Management, Production and Operations Management Society, vol. 31(5), pages 2015-2037, May.
    6. van Sambeeck, J.H.J. & van Brummelen, S.P.J. & van Dijk, N.M. & Janssen, M.P., 2022. "Optimal blood issuing by comprehensive matching," European Journal of Operational Research, Elsevier, vol. 296(1), pages 240-253.
    7. Dillon, Mary & Oliveira, Fabricio & Abbasi, Babak, 2017. "A two-stage stochastic programming model for inventory management in the blood supply chain," International Journal of Production Economics, Elsevier, vol. 187(C), pages 27-41.
    8. Anand Paul & Tharanga Rajapakshe & Suman Mallik, 2019. "Socially Optimal Contracting between a Regional Blood Bank and Hospitals," Production and Operations Management, Production and Operations Management Society, vol. 28(4), pages 908-932, April.
    9. 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.
    10. Ketzenberg, Michael & Oliva, Rogelio & Wang, Yimin & Webster, Scott, 2023. "Retailer inventory data sharing in a fresh product supply chain," European Journal of Operational Research, Elsevier, vol. 307(2), pages 680-693.
    11. Kenan, Nabil & Diabat, Ali, 2022. "The supply chain of blood products in the wake of the COVID-19 pandemic: Appointment scheduling and other restrictions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 159(C).

    More about this item

    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:taf:uiiexx:v:45:y:2013:i:1:p:53-67. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/uiie .

    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.