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Comparisons of sales modes for a fresh product supply chain with freshness-keeping effort

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  • Yang, Lei
  • Tang, Ruihong

Abstract

This paper develops a supplier-retailer fresh product supply chain under three sales modes: retail mode, dual-channel mode, and O2O (Online-to-Offline) mode. For each mode, the optimal pricing and freshness-keeping decisions are investigated. It is shown that, in decentralized systems, the dual-channel mode could outperform the O2O mode for the supplier, while the retailer prefers O2O mode to retail mode and dual-channel mode. Under coordination, the O2O mode brings the highest supply chain profit; for consumer surplus, the dual-channel mode is not always better than the retail mode, but is always inferior to the O2O mode.

Suggested Citation

  • Yang, Lei & Tang, Ruihong, 2019. "Comparisons of sales modes for a fresh product supply chain with freshness-keeping effort," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 425-448.
    • Handle: RePEc:eee:transe:v:125:y:2019:i:c:p:425-448
    DOI: 10.1016/j.tre.2019.03.020
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