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Supply Chain Coordination of Loss-Averse Retailer for Fresh Produce with Option Contracts

In: Liss 2021

Author

Listed:
  • Deng Jia

    (Sichuan Agricultural University)

  • Chong Wang

    (Sichuan Agricultural University)

Abstract

Considering the huge circulation losses of the fresh produce, we investigate the ordering and cooperation strategies with option contracts in a two-phase supply chain that a risk-neutral fresh product supplier sells to a loss-averse fresh produce retailer. The optimal option ordering policies for the loss-averse retailer as well as the optimal manufacturing strategy for the risk-neutral supplier are given when retailer only order options. According to the integrated supply chain, we discussed the coordinating conditions for the fresh produce supply chain.

Suggested Citation

  • Deng Jia & Chong Wang, 2022. "Supply Chain Coordination of Loss-Averse Retailer for Fresh Produce with Option Contracts," Lecture Notes in Operations Research, in: Xianliang Shi & Gábor Bohács & Yixuan Ma & Daqing Gong & Xiaopu Shang (ed.), Liss 2021, pages 1-10, Springer.
    • Handle: RePEc:spr:lnopch:978-981-16-8656-6_1
    DOI: 10.1007/978-981-16-8656-6_1
    as

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