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Joint procurement and pricing of fresh produce for multiple retailers with a quantity discount contract

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  • Zheng, Qi
  • Zhou, Li
  • Fan, Tijun
  • Ieromonachou, Petros

Abstract

This study considers a fresh produce supply chain consisting of one supplier and multiple retailers with a quantity discount contract in two scenarios—independent procurement and joint procurement. The supplier’s optimal pricing decision and the retailers’ optimal procurement decisions under the quantity discount contract are investigated. Furthermore, the impact of the deterioration rate on the profit of supply chains is examined. The results show that joint procurement is more profitable than independent procurement and guarantees a win-win outcome. More importantly, retailers will be motivated to form a grand coalition when the total profit can be rationally allocated among them.

Suggested Citation

  • Zheng, Qi & Zhou, Li & Fan, Tijun & Ieromonachou, Petros, 2019. "Joint procurement and pricing of fresh produce for multiple retailers with a quantity discount contract," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 130(C), pages 16-36.
    • Handle: RePEc:eee:transe:v:130:y:2019:i:c:p:16-36
    DOI: 10.1016/j.tre.2019.08.013
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    6. Ghavamifar, Ali & Torabi, S. Ali & Moshtari, Mohammad, 2022. "A hybrid relief procurement contract for humanitarian logistics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 167(C).
    7. Hu, Shaolong & Dong, Zhijie Sasha & Dai, Rui, 2024. "A machine learning based sample average approximation for supplier selection with option contract in humanitarian relief," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 186(C).
    8. Sun, Xiaojie & Tang, Wansheng & Zhang, Jianxiong & Chen, Jing, 2021. "The impact of quantity-based cost decline on supplier encroachment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 147(C).
    9. Shuangsheng Wu & Qi Li, 2021. "Emergency Quantity Discount Contract with Suppliers Risk Aversion under Stochastic Price," Mathematics, MDPI, vol. 9(15), pages 1-12, July.
    10. Ba, Luyao & Xie, Yangyang & Ma, Lijun, 2023. "Finite-horizon joint inventory-pricing optimization with non-concave demand and lost sales," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 172(C).
    11. Song, Yang & Fan, Tijun & Tang, Yuewu & Xu, Chang, 2021. "Omni-channel strategies for fresh produce with extra losses in-store," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 148(C).
    12. Wang, Yuyan & Wang, Dexia & Cheng, T.C.E. & Zhou, Rui & Gao, Junhong, 2023. "Decision and coordination of E-commerce closed-loop supply chains with fairness concern," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 173(C).
    13. Xing, Wei & Li, Qiankun & Zhao, Xuan & Li, Jialu, 2020. "Information sale and contract selection under downstream competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).

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