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Achieving Resilience: Resilient Price and Quality Strategies of Fresh Food Dual-Channel Supply Chain Considering the Disruption

Author

Listed:
  • Zhinan Li

    (Department of Industrial Engineering, Business School, University of Shanghai for Science and Technology, Shanghai 200093, China)

  • Qinming Liu

    (Department of Industrial Engineering, Business School, University of Shanghai for Science and Technology, Shanghai 200093, China)

  • Chunming Ye

    (Department of Industrial Engineering, Business School, University of Shanghai for Science and Technology, Shanghai 200093, China)

  • Ming Dong

    (Department of Operations Management, Antai College of Economics & Management, Shanghai Jiao Tong University, Shanghai 200030, China)

  • Yihan Zheng

    (Department of Industrial Engineering, Business School, University of Shanghai for Science and Technology, Shanghai 200093, China)

Abstract

In the face of demand disruptions, dual-channel supply chains (SCs) that lack resilience may be more vulnerable. Reaching moderate SC resilience through coordination is essential for dealing with disruptions. This paper investigates the operation management of a dual-channel fresh-food SC (FSC) under disruption. The centralized and decentralized decision models propose joint quality efforts based on the consideration of quality preference and loss. From the perspective of SC resilience, we analyze how SC members can optimally make price, quality, and quantity decisions resiliently and robustly under the disruption of quality preference. The results show that (1) no matter the kind of decision model, considering quality preference disruptions can significantly increase the SC profit; (2) there is a resilience range in decisions with the influence of the disruption cost. The original optimal decisions in the resilience range are robust and sustain SC performance without change; and (3) the disruption significantly impacts offline channel retailers, who are at a disadvantage when competing with online channels. A centralized decision model can achieve higher profits and quality levels in response to demand disruptions. This paper extends the concept of resilience to the FSC and provides suggestions for fresh-food enterprises to conduct quality efforts and cope with demand interruption.

Suggested Citation

  • Zhinan Li & Qinming Liu & Chunming Ye & Ming Dong & Yihan Zheng, 2022. "Achieving Resilience: Resilient Price and Quality Strategies of Fresh Food Dual-Channel Supply Chain Considering the Disruption," Sustainability, MDPI, vol. 14(11), pages 1-24, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:11:p:6645-:d:827044
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    References listed on IDEAS

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