Decision making and coordination of fresh agriculture product supply chain considering fairness concerns
RAIRO - Operations Research - Recherche Opérationnelle, Tome 54 (2020) no. 4, pp. 1231-1248.

This paper investigates decisions in a supply chain of fresh agricultural products considering fairness concerns. By considering a two-echelon supply chain consisting of a retailer and a manufacturer, this paper discusses the effect of the manufacturer’s fairness concerns and the retailer’s fairness concerns on the fresh agriculture product supply chain within the framework of Nash bargaining. Meanwhile, a revenue-sharing contract is designed to coordinate the supply chain with fairness concerns. The results show that the manufacturer’s behavioral tendency of fairness concerns will reduce their fresh-keeping effort; thereby, the freshness of products and market demand will also decrease. The behavioral tendencies of fairness concerns of both sides reduce the overall effectiveness of the supply chain and adversely affect the stability of the fresh produce supply chain. Both the optimal retail price and the fresh-keeping effort can be achieved while all parties get higher utilities under the revenue-sharing contract in comparison to the case without coordination.

DOI : 10.1051/ro/2019031
Classification : 90B10, 91A80
Mots-clés : Fresh agricultural products, freshness-keeping effort level, fairness concerns, supply chain coordination, revenue sharing 
@article{RO_2020__54_4_1231_0,
     author = {Yan, Bo and Chen, Yan-Ru and He, Shi-You},
     title = {Decision making and coordination of fresh agriculture product supply chain considering fairness concerns},
     journal = {RAIRO - Operations Research - Recherche Op\'erationnelle},
     pages = {1231--1248},
     publisher = {EDP-Sciences},
     volume = {54},
     number = {4},
     year = {2020},
     doi = {10.1051/ro/2019031},
     mrnumber = {4109813},
     language = {en},
     url = {http://www.numdam.org/articles/10.1051/ro/2019031/}
}
TY  - JOUR
AU  - Yan, Bo
AU  - Chen, Yan-Ru
AU  - He, Shi-You
TI  - Decision making and coordination of fresh agriculture product supply chain considering fairness concerns
JO  - RAIRO - Operations Research - Recherche Opérationnelle
PY  - 2020
SP  - 1231
EP  - 1248
VL  - 54
IS  - 4
PB  - EDP-Sciences
UR  - http://www.numdam.org/articles/10.1051/ro/2019031/
DO  - 10.1051/ro/2019031
LA  - en
ID  - RO_2020__54_4_1231_0
ER  - 
%0 Journal Article
%A Yan, Bo
%A Chen, Yan-Ru
%A He, Shi-You
%T Decision making and coordination of fresh agriculture product supply chain considering fairness concerns
%J RAIRO - Operations Research - Recherche Opérationnelle
%D 2020
%P 1231-1248
%V 54
%N 4
%I EDP-Sciences
%U http://www.numdam.org/articles/10.1051/ro/2019031/
%R 10.1051/ro/2019031
%G en
%F RO_2020__54_4_1231_0
Yan, Bo; Chen, Yan-Ru; He, Shi-You. Decision making and coordination of fresh agriculture product supply chain considering fairness concerns. RAIRO - Operations Research - Recherche Opérationnelle, Tome 54 (2020) no. 4, pp. 1231-1248. doi : 10.1051/ro/2019031. http://www.numdam.org/articles/10.1051/ro/2019031/

[1] A. Ahmadi-Javid and P. Hoseinpour, On a cooperative advertising model for a supply chain with one manufacturer and one retailer. Eur. J. Oper. Res. 219 (2012) 458–466. | DOI | MR | Zbl

[2] Y. Akçay, H.P. Natarajan and S.H. Xu, Joint dynamic pricing of multiple perishable products under consumer choice. Manag. Sci. 56 (2010) 1345–1361. | DOI | Zbl

[3] D.B. Arnaud and E.B. Gary, Estimating the influence of fairness on bargaining behavior. Manag. Sci. 54 (2008) 1774–1791. | Zbl

[4] S.S. Atallah, M.I. Gómez and T. Björkman, Localization effects for a fresh vegetable product supply chain: Broccoli in the eastern United States. Food Policy 49 (2014) 151–159. | DOI

[5] K. Binmore, A. Rubinstein and A. Wolinsky, The Nash bargaining solution in economic modelling. RAND J. Econ. 17 (2012) 176–188. | DOI | MR

[6] J. Blackburn and G. Scudder, Supply chain strategies for perishable products: the case of fresh produce. Prod. Oper. Manag. 18 (2009) 129–137. | DOI

[7] X. Cai, J. Chen, Y. Xiao and X. Xu, Optimization and coordination of fresh product supply chains with freshness-keeping. Effort. Prod. Oper. Manag. 19 (2010) 261–278. | DOI

[8] X. Cai, J. Chen, Y. Xiao, X. Xu and G. Yu, Fresh-product supply chain management with logistics outsourcing. Omega 41 (2013) 752–765. | DOI

[9] O. Caliskan-Demirag, Y.F. Chen and J. Li, Channel coordination under fairness concerns and nonlinear demand. Eur. J. Oper. Res. 207 (2010) 1321–1326. | DOI | MR | Zbl

[10] J. Chen, Y.W. Zhou and Y. Zhong, A pricing/ordering model for a dyadic supply chain with buyback guarantee financing and fairness concerns. Int. J. Prod. Res. 55 (2017) 5287–5304. | DOI

[11] T.H. Cui, J.S. Raju and Z.J. Zhang. Fairness and channel coordination, Manag. Sci. 53 (2007) 1303–1314. | DOI

[12] B. Dan, G. Xu and C. Liu, Pricing policies in a dual-channel supply chain with retail services. Int. J. Prod. Econ. 139 (2012) 312–320. | DOI

[13] S. Debove, N. Baumard and J.B. André, Models of the evolution of fairness in the ultimatum game: a review and classification. Evol. Hum. Behav. 37 (2016) 245–254. | DOI

[14] S. Du, T. Nie, C. Chu and Y. Yu, Newsvendor model for a dyadic supply chain with Nash bargaining fairness concerns. Int. J. Prod. Res. 52 (2014) 5070–5085. | DOI

[15] C.Y. Dye, Joint pricing and ordering policy for a deteriorating inventory with partial backlogging. Omega 35 (2007) 184–189. | DOI

[16] K. Govindan and M.N. Popiuc, Reverse supply chain coordination by revenue sharing contract: a case for the personal computers industry. Eur. J. Oper. Res. 233 (2014) 326–336. | DOI | MR | Zbl

[17] T.H. Ho, X. Su and Y. Wu, Distributional and peer-induced fairness in supply chain contract design. Prod. Oper. Manag. 23 (2014) 161–175. | DOI

[18] Y.S. Huang, W.J. Su and Z.L. Lin, A study on lead-time discount coordination for deteriorating products. Eur. J. Oper. Res. 215 (2011) 358–366. | MR | Zbl

[19] E. Katok, T. Olsen and V. Pavlov, Wholesale pricing under mild and privately known concerns for fairness. Prod. Oper. Manag. 23 (2014) 285–302. | DOI

[20] M. Keizer, R. Akkerman, M. Grunow, J.M. Bloemhof, R. Haijema and J.G. Van Der Vorst, Logistics network design for perishable products with heterogeneous quality decay. Eur. J. Oper. Res. 262 (2017) 535–549. | DOI | MR

[21] M. Ketzenberg and M.E. Ferguson, Managing slow-moving perishables in the grocery industry. Prod. Oper. Manag. 17 (2008) 513–521. | DOI

[22] B. Li, M. Zhu, Y. Jiang and Z. Li, Pricing policies of a competitive dual-channel green supply chain. J. Clean. Prod. 112 (2016) 2029–2042. | DOI

[23] C.H. Loch and Y. Wu, Social preferences and supply chain performance: an experimental study. Manag. Sci. 54 (2008) 1835–1849. | DOI | Zbl

[24] C. Lohmann, Coordination of supply chain investments and the advantage of revenue sharing. Zeitschrift für Betriebswirtschaft 80 (2010) 969–990. | DOI

[25] M.M. Lotfi, M. Rabbani and S.F. Ghaderi, A weighted goal programming approach for replenishment planning and space allocation in a supermarket. J. Oper. Res. Soc. 62 (2011) 1128–1137. | DOI

[26] Y.P. Lee and C.Y. Dye, An inventory model for deteriorating items under stock-dependent demand and controllable deterioration rate. Comput. Ind. Eng. 63 (2012) 474–482. | DOI

[27] P. Ma, H. Wang and J. Shang, Supply chain channel strategies with quality and marketing effort-dependent demand. Int. J. Prod. Econ. 144 (2013) 572–581. | DOI

[28] P. Ma, H. Wang and J. Shang, Contract design for two-stage supply chain coordination: integrating manufacturer-quality and retailer-marketing efforts. Int. J. Prod. Econ. 146 (2013) 745–755. | DOI

[29] L. Mainetti, L. Patrono, M.L. Stefanizzi and R. Vergallo, An innovative and low-cost gapless traceability system of fresh vegetable products using RF technologies and EPCglobal standard. Comput. Electron. Agr. 98 (2013) 146–157. | DOI

[30] D. Nakandala, H. Lau and J. Zhang, Cost-optimization modelling for fresh food quality and transportation. Ind. Manag. Data Syst. 116 (2016) 564–583. | DOI

[31] Y. Qin, J. Wang and C. Wei, Joint pricing and inventory control for fresh produce and foods with quality and physical quantity deteriorating simultaneously. Int. J. Prod. Econ. 152 (2014) 42–48. | DOI

[32] A. Rong, R. Akkerman and M. Grunow, An optimization approach for managing fresh food quality throughout the supply Chain. Int. J. Prod. Econ. 131 (2011) 421–429. | DOI

[33] S.S. Sana, Demand influenced by enterprises’ initiatives – a multi-item EOQ model of deteriorating and ameliorating items. Math. Comput. Model. 52 (2010) 284–302. | DOI | MR | Zbl

[34] P. Sudhölter and J.M. Zarzuelo, Extending the Nash solution to choice problems with reference points. Games Econ. Behav. 80 (2013) 219–228. | DOI | MR | Zbl

[35] A.A. Taleizadeh, M. Noori-Daryan and L.E. Cárdenas-Barrón, Joint optimization of price, replenishment frequency, replenishment cycle and production rate in vendor managed inventory system with deteriorating items. Int. J. Prod. Econ. 159 (2015) 285–295. | DOI

[36] X. Wang and D. Li, A dynamic product quality evaluation based pricing model for perishable food supply chains. Omega 40 (2012) 906–917. | DOI

[37] T. Xiao, D. Yang and H. Shen, Coordinating a supply chain with a quality assurance policy via a revenue-sharing contract. Int. J. Prod. Res. 49 (2011) 99–120. | DOI | Zbl

[38] G. Xu, B. Dan, X. Zhang and C. Liu, Coordinating a dual-channel supply chain with risk-averse under a two-way revenue sharing contract. Int. J. Prod. Econ. 147 (2014) 171–179. | DOI

[39] L. Zhang, J. Wang and J. You, Consumer environmental awareness and channel coordination with two substitutable products. Eur. J. Oper. Res. 241 (2015) 63–73. | DOI | MR

Cité par Sources :