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Two-Stage Supply Chain Pricing And Contractual Coordination Considering Customer Freshness Sensitivity

Posted on:2024-05-09Degree:MasterType:Thesis
Country:ChinaCandidate:F LiuFull Text:PDF
GTID:2569307115455604Subject:Logistics Engineering and Management
Abstract/Summary:PDF Full Text Request
With the gradual improvement of the supply chain,the gradual laying of retail stores such as fruits and seafood,online and offline go hand in hand,from boxma freshness to daily freshness,different models and different bodies are working together to make a freshness track,which helps people expand from a local market where they can only consume fresh products around them to a global freshness market where they can buy fresh products,which of course is not only a profit opportunity for retailers,but also a major challenge.The challenge is how to solve the problem of selling fresh products to consumers with different freshness sensitivities,implementing appropriate pricing strategies for different freshness levels,and maximizing profits.The decision of each player in the fresh food supply chain directly determines the cost of purchase for the consumer.Price setting is influenced by production costs,supply and demand,and market conditions.If perishable products such as fruits,vegetables,and meats are priced uniformly without regard to the effective time available for consumption,consumers will choose to pick and choose products,thus wasting products that are not fresh but are edible.With dynamic pricing,where prices are set based on freshness,customers may choose to buy products that are not fresh but less expensive,thereby increasing supply chain profits and reducing food waste.Based on the scarce literature on dynamic pricing of perishable items,this paper develops a model to determine the dynamic price of products with freshness: firstly,a threestage supply chain is constructed consisting of suppliers and retailers,and consumers;a freshness change function is constructed from a realistic freshness change;different stages of freshness are differentiated,and a two-stage consumer freshness sensitivity-based dynamic pricing model based on consumer freshness sensitivity.This not only facilitates consumers to choose consumption stages according to their price and freshness preferences,but also facilitates retailers to make dynamic pricing according to different quality fresh products.The two-stage equilibrium of the supply chain under centralized and decentralized decision making is then solved by using the inverse induction method,and the two decisions are compared and analyzed to find the incentive dissonance problem in decentralized decision making,and then the two-stage cost-sharing contract and benefit-sharing contract are designed to provide a coordination solution for decentralized decision making.The results show that in the context of high consumer sensitivity,there is a negative impact on the profits of suppliers and retailers at this time,which is not conducive to the long-term functioning of the business,although the overall welfare of society is enhanced.A contractual cooperation between suppliers and retailers can be considered at this point.Although in a decentralized supply chain structure,such cooperation cannot reach the optimum in a centralized one,there is still room for companies to make profits;in a situation where consumers are less sensitive to fresh products,revenue-sharing contracts and costsharing can obviously benefit,but in order to pursue perfect coordination in the supply chain,both parties need to communicate and negotiate the contract ratio in order to promote winwin situation for both parties.
Keywords/Search Tags:Sensitivity to freshness, Dynamic pricing, Fresh supply chain, Contractual coordination
PDF Full Text Request
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