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Balance Between Pricing and Service Level in a Fresh Agricultural Products Supply Chain Considering Partial Integration

In: AI and Analytics for Public Health

Author

Listed:
  • Peihan Wen

    (School of Management Science and Real Estate, Chongqing University)

  • Jiaqi He

    (College of Mechanical Engineering, Chongqing University)

Abstract

To improve the cold chain service level in fresh agricultural products supply chain, researchers studied two patterns of supply chain structure, i.e., no integration and complete integration between two subjects. But it’s unknown that whether partial integration, which is a common type of supply chain structure, can provide higher cold chain service level and profit for each player in fresh agricultural products supply chain than no integration or complete integration. Thus, partial integration between a supplier and a third party logistics enterprise was considered and compared with no integration and complete integration. Three profit models for the three types of supply chain structures were set up, respectively, and the backward induction method was used to solve them. Through a numerical analysis of the equilibrium results, it was found that complete integration could benefit each player, but not all players could benefit more from partial integration than from no integration, which is different from our intuition. Likewise, it was observed that similar situations showed for the cold chain service level. Finally, the conditions under which partial integration can be better than no integration in terms of cold chain service level and profit of each player were identified, which could be used in fresh agricultural products supply chain management.

Suggested Citation

  • Peihan Wen & Jiaqi He, 2022. "Balance Between Pricing and Service Level in a Fresh Agricultural Products Supply Chain Considering Partial Integration," Springer Proceedings in Business and Economics, in: Hui Yang & Robin Qiu & Weiwei Chen (ed.), AI and Analytics for Public Health, pages 343-353, Springer.
    • Handle: RePEc:spr:prbchp:978-3-030-75166-1_25
    DOI: 10.1007/978-3-030-75166-1_25
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