Optimal Ordering Policy For Fresh Agricultural Products Under Stochastic Demand And Supply

Fresh agricultural produce (such as vegetables, fruits and so on) is a necessity of daily life. At present, as the economic is developing rapidly, the living standards have been improved and the consumption patterns have changed. The supermarket has been an important channel for consumers to purchase fresh produce because it is a standardization of retail channel. However, fresh agricultural produce is a kind of deteriorating items which will deteriorate over time. At the same time, the supermarket who sells the fresh food will face the problem of stochastic demand and supply. The yield of fresh products is affected by some uncertain factors (such as the weather), and the demand has high uncertainty. Therefore, studying the optimal ordering policy under the stochastic demand and supply is of practical significance.After the comprehensive related research analysis at home and abroad, we research on the optimal ordering policy considering the deterioration rate and stochastic demand and supply. The paper is divided into two parts:(1) Studying the optimal order quantity of the supermarket under stochastic demand and supply, in a two stage supply chain with one producer and one retailer. The results show that the optimal order decision is not only affected by the whole price, the retail price, the deteriorating cost and so on, but also the stochastic supply rate.(2) Based on the first part, we study the optinal order decision in a two stage supply chain with two producers (one is unreliable and the other is reliable) and one retailer. The results show that the optimal order policy is also affected by the stochastic supply rate.