Dual-channel perishable supply chain: optimal pricing, quality, and screening rate of damage with returns under stochastic demand

This paper investigates a dual-channel, two-echelon supply chain comprising a manufacturer and a retailer for a single perishable product. In today's global marketplace, a well-designed return policy is a crucial element that can lead to higher revenues, reduced expenses, improved profitability, and enhanced customer loyalty. Offering the option to return perishable goods can significantly increase consumer willingness to purchase them. The model incorporates a return policy, recognizing its importance in enhancing consumer acceptance and demand in both traditional retail and the manufacturer's e-tail channels. Analytical solutions are derived for centralized and decentralized systems to optimize decision variables that maximize total profit. Numerical examples illustrate the model's findings, revealing that a return policy for perishable goods significantly benefits the supply chain members by increasing profit, particularly with higher demand.