IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i18p13586-d1237664.html
   My bibliography  Save this article

Developing Platform Supply Chain Contract Coordination and a Numerical Analysis Considering Fresh-Keeping Services

Author

Listed:
  • Yong Wang

    (School of Management, Wuhan University of Science and Technology, Wuhan 430065, China
    Sanya Science and Education Innovation Park of Wuhan University of Technology, Sanya 572000, China
    Department of Production Engineering, KTH Royal Institute of Technology, 114 28 Stockholm, Sweden)

  • Xudong Deng

    (School of Management, Wuhan University of Science and Technology, Wuhan 430065, China)

  • Qian Lu

    (Sanya Science and Education Innovation Park of Wuhan University of Technology, Sanya 572000, China)

  • Mingke Guan

    (School of Management, Wuhan University of Science and Technology, Wuhan 430065, China)

  • Fen Lu

    (School of Management, Wuhan University of Science and Technology, Wuhan 430065, China)

  • Xiaochang Wu

    (School of Management, Wuhan University of Science and Technology, Wuhan 430065, China)

Abstract

With changes in demand and the emergence of new distribution channels, consumer-centric buyer’s markets for many products have been formed. The platform supply chain has been continuously optimized and upgraded. Supply chain leaders have moved downstream to the end of the supply chain. The operational value has been further enhanced. The corresponding systematic construction of the platform supply chain has become an important driving force for future development. The model in this paper is different from the traditional supply chain contract model, which mainly focuses on suppliers or demand. In order to meet the requirements of fresh-keeping services and the goal of revenue sharing, we integrate the production and circulation characteristics of fresh produce into the design of a contract model. In this paper, a revenue-sharing contract model of the fresh produce supply chain is constructed based on the core position of retailers, the uncertainty of the market size, and the consideration of a fresh-keeping service. The model is mainly composed of the core retailer and the supplier. Through further numerical analysis, we verify the effectiveness of the revenue-sharing contract model in supply chain coordination. We also analyze the change trends in the optimal retail price, optimal freshness level, and optimal order quantity caused by changes in both the fresh-keeping service capacity and the revenue-sharing coefficient. The results show that after changing these two parameters, the supply chain can achieve coordination under the specified parameter values. The changed parameters will also lead to certain change trends in the optimal retail price, optimal freshness level, and optimal order quantity, and will have a corresponding impact on the stability of supply chain operation. This research provides a relevant theoretical and empirical basis for a fresh produce supply chain contract model with retailers at the core position. We also provide guidance and reference for optimizing the supply chain management mode and improving the overall operational efficiency of the fresh produce supply chain.

Suggested Citation

  • Yong Wang & Xudong Deng & Qian Lu & Mingke Guan & Fen Lu & Xiaochang Wu, 2023. "Developing Platform Supply Chain Contract Coordination and a Numerical Analysis Considering Fresh-Keeping Services," Sustainability, MDPI, vol. 15(18), pages 1-20, September.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:18:p:13586-:d:1237664
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/18/13586/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/18/13586/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rodney Thomas & Jessica L. Darby & David Dobrzykowski & Remko van Hoek, 2021. "Decomposing Social Sustainability: Signaling Theory Insights into Supplier Selection Decisions," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(4), pages 117-136, October.
    2. Trienekens, Jacques & Zuurbier, Peter, 2008. "Quality and safety standards in the food industry, developments and challenges," International Journal of Production Economics, Elsevier, vol. 113(1), pages 107-122, May.
    3. Xianpei Hong & Lan Wang & Yeming Gong & Wanying (Amanda) Chen, 2020. "What is the role of value-added service in a remanufacturing closed-loop supply chain?," International Journal of Production Research, Taylor & Francis Journals, vol. 58(11), pages 3342-3361, June.
    4. Xue-Yan Wu & Zhi-Ping Fan & Bing-Bing Cao, 2023. "An analysis of strategies for adopting blockchain technology in the fresh product supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 61(11), pages 3717-3734, June.
    5. Feng, Lipan & Govindan, Kannan & Li, Chunfa, 2017. "Strategic planning: Design and coordination for dual-recycling channel reverse supply chain considering consumer behavior," European Journal of Operational Research, Elsevier, vol. 260(2), pages 601-612.
    6. Johan Swinnen & Rob Vos, 2021. "COVID‐19 and impacts on global food systems and household welfare: Introduction to a special issue," Agricultural Economics, International Association of Agricultural Economists, vol. 52(3), pages 365-374, May.
    7. Palsule-Desai, Omkar D., 2013. "Supply chain coordination using revenue-dependent revenue sharing contracts," Omega, Elsevier, vol. 41(4), pages 780-796.
    8. Gérard P. Cachon & Martin A. Lariviere, 2005. "Supply Chain Coordination with Revenue-Sharing Contracts: Strengths and Limitations," Management Science, INFORMS, vol. 51(1), pages 30-44, January.
    9. Stefan Kurpjuweit & Stephan M. Wagner & Thomas Y. Choi, 2021. "Selecting Startups as Suppliers: A Typology of Supplier Selection Archetypes," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(3), pages 25-49, July.
    10. Nana Wan & Li Li & Xiaozhi Wu & Jianchang Fan, 2021. "Coordination of a fresh agricultural product supply chain with option contract under cost and loss disruptions," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-15, June.
    11. Jury Gualandris & Matteo Kalchschmidt, 2016. "Developing environmental and social performance: the role of suppliers’ sustainability and buyer--supplier trust," International Journal of Production Research, Taylor & Francis Journals, vol. 54(8), pages 2470-2486, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Qiang Han & Yuyan Wang, 2018. "Decision and Coordination in a Low-Carbon E-Supply Chain Considering the Manufacturer’s Carbon Emission Reduction Behavior," Sustainability, MDPI, vol. 10(5), pages 1-23, May.
    2. Yang, Huixiao & Luo, Jianwen & Zhang, Qinhong, 2018. "Supplier encroachment under nonlinear pricing with imperfect substitutes: Bargaining power versus revenue-sharing," European Journal of Operational Research, Elsevier, vol. 267(3), pages 1089-1101.
    3. Chen, Wenbo, 2018. "Retailer-driven carbon emission abatement with consumer environmental awareness and carbon tax: Revenue-sharing versus Cost-sharingAuthor-Name: Yang, Huixiao," Omega, Elsevier, vol. 78(C), pages 179-191.
    4. Xiaomin Zhao & Xueli Bai & Zhihui Fan & Ting Liu, 2020. "Game Analysis and Coordination of a Closed-Loop Supply Chain: Perspective of Components Reuse Strategy," Sustainability, MDPI, vol. 12(22), pages 1-19, November.
    5. Valentina Marano & Miriam Wilhelm & Tatiana Kostova & Jonathan Doh & Sjoerd Beugelsdijk, 2024. "Multinational firms and sustainability in global supply chains: scope and boundaries of responsibility," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(4), pages 413-428, June.
    6. Cai, Jianhu & Hu, Xiaoqing & Tadikamalla, Pandu R. & Shang, Jennifer, 2017. "Flexible contract design for VMI supply chain with service-sensitive demand: Revenue-sharing and supplier subsidy," European Journal of Operational Research, Elsevier, vol. 261(1), pages 143-153.
    7. Pfeiffer, Thomas, 2016. "A comparison of simple two-part supply chain contracts," International Journal of Production Economics, Elsevier, vol. 180(C), pages 114-124.
    8. Ma, Xiaoyu & Huang, Feiteng & Li, Xue & Zhang, Jihong, 2024. "Optimal contract design in mobile service industry considering network congestion," International Journal of Production Economics, Elsevier, vol. 267(C).
    9. Xiaofang Liu & Jian Li & Jun Wu & Guoqing Zhang, 2017. "Coordination of supply chain with a dominant retailer under government price regulation by revenue sharing contracts," Annals of Operations Research, Springer, vol. 257(1), pages 587-612, October.
    10. Zhen-juan Xia & Yong Liu & Qi Zhang, 2022. "A dual supply chain revenue sharing contract considering online reviews and rebate," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(3), pages 321-331, June.
    11. de Matta, Renato E. & Lowe, Timothy J. & Zhang, Dengfeng, 2014. "Consignment or wholesale: Retailer and supplier preferences and incentives for compromise," Omega, Elsevier, vol. 49(C), pages 93-106.
    12. Gerlach, Max & Kliewer, Natalia & Cleophas, Catherine, 2016. "A note on effective code-share management in practice," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 202-205.
    13. Hou, Xiyang & Li, Jianbin & Liu, Zhixin & Guo, Yongjiang, 2022. "Pareto and Kaldor–Hicks improvements with revenue-sharing and wholesale-price contracts under manufacturer rebate policy," European Journal of Operational Research, Elsevier, vol. 298(1), pages 152-168.
    14. Juhong Chen & Di Wu & Peng Li, 2018. "Research on the Pricing Model of the Dual-Channel Reverse Supply Chain Considering Logistics Costs and Consumers’ Awareness of Sustainability Based on Regional Differences," Sustainability, MDPI, vol. 10(7), pages 1-31, June.
    15. Deng Jia & Chong Wang, 2022. "Option Contracts in Fresh Produce Supply Chain with Freshness-Keeping Effort," Mathematics, MDPI, vol. 10(8), pages 1-24, April.
    16. Lütkemeyer, Daniel & Heese, H. Sebastian & Wuttke, David A., 2021. "Overcoming inefficiencies in the development of personalized medicine," European Journal of Operational Research, Elsevier, vol. 290(1), pages 278-296.
    17. Peng Li & Di Wu, 2021. "A Multi-Echelon Network Design in a Dual-Channel Reverse Supply Chain Considering Consumer Preference," IJERPH, MDPI, vol. 18(9), pages 1-24, April.
    18. Aijun Liu & Dengxue Li & Miao Jie & Zengxian Li, 2022. "Coordination through revenue sharing contract in an E‐commerce supply chain with consumer preference," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2467-2479, September.
    19. Cai, Ya-Jun & Choi, Tsan-Ming & Zhang, Ting, 2022. "Commercial used apparel collection operations in retail supply chains," European Journal of Operational Research, Elsevier, vol. 298(1), pages 169-181.
    20. Li, Tian & Zhang, Hongtao, 2015. "Information sharing in a supply chain with a make-to-stock manufacturer," Omega, Elsevier, vol. 50(C), pages 115-125.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:18:p:13586-:d:1237664. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.