Supply chain coordination of fresh Agri-products based on value loss
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Supply chain coordination of fresh Agri-products based on value loss Bo Yan 1
&
Jing Fan 1 & Congyan Cai 1 & Jing Fang 1
Received: 9 January 2019 / Revised: 29 July 2020 / Accepted: 24 August 2020 # Springer Science+Business Media, LLC, part of Springer Nature 2020
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 agriproducts 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. Keywords Value loss . Fresh Agri-products . Supply chain coordination . Cost-sharing contract . Improved revenue-sharing contract
1 Introduction Fresh agri-products such as vegetables, fruits, and milk have obvious seasonal characteristics, shorter life cycles, and complex supply and demand situation compared with other perishable products. Due to the long distance between production places and target markets, their unique natural attributes make them vulnerable to damage during transportation, which inevitably leads to the loss of quantity and freshness. In this paper, two types of loss are called value loss. Quantity loss reflects the deterioration of some products in the long-distance * Bo Yan [email protected] Jing Fan [email protected] Congyan Cai [email protected] Jing Fang [email protected] 1
Department: School of Economics and Commerce, South China University of Technology, Guangzhou, China
transportation, resulting in the quantity of agri-products arriving at the retailer less than the order quantity of the retailer. The freshness of agri-products has a direct impact on their quality and consumers’ purchasing behavior. According to statistics, the loss rate of fresh agri-products in China is 20%–30%, with an annual loss o
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