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Push or Pull? Perishable Products with Freshness-Keeping Effort

Author

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  • Lianmin Zhang

    (School of Management and Engineering, Nanjing University, Nanjing, P. R. China)

  • Lei Guan

    (School of Management and Economics, Beijing Institute of Technology, Beijing, P. R. China)

  • Yong-Hong Kuo

    (Department of Industrial and Manufacturing Systems Engineering, The University of Hong Kong, Hong Kong, P. R. China)

  • Houcai Shen

    (School of Management and Engineering, Nanjing University, Nanjing, P. R. China)

Abstract

With the gradual improvement of living standards, people’s consumption levels and habits are changing. One notable fact is that the demand for fresh products is growing steadily. Accordingly, fresh-product preservation and logistics distribution also require higher standards. Based on the practice of fresh domestic transport and preservation, for which the producer and the distributor are responsible, this paper discusses their optimal decisions taking into account the freshness-keeping effort of the distributor. Our main contributions include the derivations of the optimal decisions of the order quantity and the freshness-keeping effort in both the pull and push models, which are common in practice but have not been studied in the literature. Our analytical models lead to the result that, all other settings being the same, the distributor always puts a greater effort into preserving the product quality in the pull model than in the push model. This phenomenon results in a greater distributor’s order quantity and producer’s shipping quantity in the pull model. We also conduct a comprehensive numerical comparison of the effects of different modulating factors, including the price and the proportion and variation of surviving quantity, in these two settings. We find that the profits of the participants and the supply chain are always larger in the pull model, which indicates that the pull model is a better choice for the supply chain.

Suggested Citation

  • Lianmin Zhang & Lei Guan & Yong-Hong Kuo & Houcai Shen, 2019. "Push or Pull? Perishable Products with Freshness-Keeping Effort," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 36(01), pages 1-29, February.
    • Handle: RePEc:wsi:apjorx:v:36:y:2019:i:01:n:s0217595919500088
    DOI: 10.1142/S0217595919500088
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    References listed on IDEAS

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    Cited by:

    1. Nana Wan & Li Li & Xiaozhi Wu & Jianchang Fan, 2021. "Coordination of a fresh agricultural product supply chain with option contract under cost and loss disruptions," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-15, June.
    2. Zhiping Lin & Jing Peng & Jia Wang, 2023. "The cash flows in push and pull supply chains under supply disruptions," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 1191-1202, March.

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