Volume 54, Number 4, July-August 2020
|Page(s)||1231 - 1248|
|Published online||12 June 2020|
Decision making and coordination of fresh agriculture product supply chain considering fairness concerns
South China University of Technology, School of Economics and Commerce, South China University of Technology, Guangzhou Higher Education Mega Centre, Panyu District, Guangzhou 510006, PR China
* Corresponding author: firstname.lastname@example.org
Accepted: 14 March 2019
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.
Mathematics Subject Classification: 90B10 / 91A80
Key words: Fresh agricultural products / freshness-keeping effort level / fairness concerns / supply chain coordination / revenue sharing
© EDP Sciences, ROADEF, SMAI 2020
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