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Decision-making of fresh agricultural product supply chain considering the manufacturer’s fairness concerns

Author

Listed:
  • Bo Yan

    (South China University of Technology)

  • Jiwen Wu

    (South China University of Technology)

  • Zijie Jin

    (South China University of Technology)

  • Shiyou He

    (South China University of Technology)

Abstract

By considering the characteristics of fresh agricultural products, this article introduces the behavioral tendency of fairness concerns of manufacturer to examine the fresh agricultural product supply chain and the optimal decision-making problem. The effects of the manufacturer’s behavioral tendency of fairness concerns on the fresh agricultural product supply chain is analyzed within the traditional and Nash bargaining frameworks, respectively. Results indicate that the manufacturer’s behavioral tendencies can reduce the freshness-keeping effort, the freshness of the produce, and the market demand of fresh agricultural products. The optimal wholesale price and retail price also increase or decrease to meet the manufacturer’s fairness concerns. These are determined by the price elasticity and the level of fairness concern, along with the fairness concern condition. Whether within the traditional or Nash bargaining fairness concern framework, market demand declines significantly with the increase in the level of fairness concern, thereby leading to the reduction of the utility of retailer in the supply chain. Therefore, the revenue sharing contract is introduced to achieve the Pareto improvement of both the manufacturer and the retailer.

Suggested Citation

  • Bo Yan & Jiwen Wu & Zijie Jin & Shiyou He, 2020. "Decision-making of fresh agricultural product supply chain considering the manufacturer’s fairness concerns," 4OR, Springer, vol. 18(1), pages 91-122, March.
    • Handle: RePEc:spr:aqjoor:v:18:y:2020:i:1:d:10.1007_s10288-019-00409-x
    DOI: 10.1007/s10288-019-00409-x
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    Cited by:

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    2. Qing Yang & Lei Xiong & Yanfeng Li & Qian Chen & Yijing Yu & Jingyang Wang, 2022. "Contract Coordination of Fresh Agri-Product Supply Chain under O2O Model," Sustainability, MDPI, vol. 14(14), pages 1-20, July.
    3. Fang Qiu & Qifan Hu & Bing Xu, 2020. "Fresh Agricultural Products Supply Chain Coordination and Volume Loss Reduction Based on Strategic Consumer," IJERPH, MDPI, vol. 17(21), pages 1-25, October.
    4. Yaoguang Zhong & Ivan Ka Wai Lai & Fangfang Guo & Huajun Tang, 2021. "Research on Government Subsidy Strategies for the Development of Agricultural Products E-Commerce," Agriculture, MDPI, vol. 11(11), pages 1-27, November.
    5. Jiali Wang & Yujia Huo & Xiangyu Guo & Yang Xu, 2022. "The Pricing Strategy of the Agricultural Product Supply Chain with Farmer Cooperatives as the Core Enterprise," Agriculture, MDPI, vol. 12(5), pages 1-17, May.
    6. Genhasi Ge & Daoping Wang & Mesumbe Bianca Epede, 2022. "Pricing Policies of Green Dual-Channel Supply Chain with Fairness Concerns and Altruistic Preferences Based on Consumers’ Environmental Awareness and Channel Preference," IJERPH, MDPI, vol. 19(20), pages 1-28, October.

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