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

¹ Department of Mathematics, Kazi Nazrul University, Asansol 713340, West Bengal, India
² Department of Mathematics, Tamralipta Mahavidyalaya, Tamluk 721636, West Bengal, India

^* Corresponding author: This email address is being protected from spambots. You need JavaScript enabled to view it.

Received: 12 May 2025
Accepted: 8 May 2026

Abstract

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.