Quantity Flexibility Coordination of Fresh Produce Supply Chain with Stochastic Demand

The channel control power of supply chain members not only affects the decision sequence but also influences the retail price. For a secondary fresh food supply chain composed of large supermarkets and specialized cooperatives, with prices considered as a function of control power, where demand is simultaneously influenced by price, freshness effort, and random market potential, a decentralized decision-making model dominated by supermarkets and an integrated decision-making quantity flexibility coordination model were constructed. MATLAB programming was used to solve these models. The analysis indicates that the optimal control power level has an inverse relationship with the control power price coefficient; supermarkets should enhance the control power coefficient through sustained reputation and brand goodwill rather than increasing the control power level. The more sensitive consumers are to freshness efforts, the higher the levels of freshness effort and control power should be. By adopting the quantity flexibility mechanism, not only can supply chain profits be maximized, but the effective implementation of the integrated system can also be guaranteed.

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Published
2025-03-28
DOI
https://doi.org/10.1145/3745238.3745350
Primary Topic
Supply Chain and Inventory Management
Type
article
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article

Quantity Flexibility Coordination of Fresh Produce Supply Chain with Stochastic Demand

Aonan Liang, Shuyun Wang, Xiaohui Li
Supply Chain and Inventory Management
article

Quantity Flexibility Coordination of Fresh Produce Supply Chain with Stochastic Demand

Aonan Liang, Shuyun Wang, Xiaohui Li
article en

Abstract

The channel control power of supply chain members not only affects the decision sequence but also influences the retail price. For a secondary fresh food supply chain composed of large supermarkets and specialized cooperatives, with prices considered as a function of control power, where demand is simultaneously influenced by price, freshness effort, and random market potential, a decentralized decision-making model dominated by supermarkets and an integrated decision-making quantity flexibility coordination model were constructed. MATLAB programming was used to solve these models. The analysis indicates that the optimal control power level has an inverse relationship with the control power price coefficient; supermarkets should enhance the control power coefficient through sustained reputation and brand goodwill rather than increasing the control power level. The more sensitive consumers are to freshness efforts, the higher the levels of freshness effort and control power should be. By adopting the quantity flexibility mechanism, not only can supply chain profits be maximized, but the effective implementation of the integrated system can also be guaranteed.

Shandong Management University (CN)
Openalex Percentile: Top 68%
Supply Chain and Inventory Management
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