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Decisions and Coordination in Fresh Product Supply Chain with Dual Channels Under Government Subsidy

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  • Changwang Zhang

    (Beijing Jiaotong University)

  • Hongjie Lan

    (Beijing Jiaotong University)

  • Zhengwei Lyu

    (Beijing Jiaotong University)

Abstract

To ensure the quality of fresh agricultural products, the Chinese government implemented financial subsidies to incentivize farmers to construct refrigerated facilities. Based on this, we consider a dual-channel fresh agricultural product (FAP) supply chain composed of a farmer and a retailer. The retailer sells the products online and offline, and the government provides subsidies to offset the farmer’s freshness-keeping cost. We develop decision models under decentralized and centralized scenarios, compare the optimal solutions with and without government subsidies for each scenario, and propose a contract mechanism to coordinate the decentralized supply chain. Our findings offer valuable insights for farmers and retailers in making optimal decisions with and without government subsidies.

Suggested Citation

  • Changwang Zhang & Hongjie Lan & Zhengwei Lyu, 2025. "Decisions and Coordination in Fresh Product Supply Chain with Dual Channels Under Government Subsidy," Lecture Notes in Operations Research,, Springer.
    • Handle: RePEc:spr:lnopch:978-981-96-9697-0_16
    DOI: 10.1007/978-981-96-9697-0_16
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