Supply Chain Coordination For Perishable Products Based On Dynamic Pricing And False Failure Returns

As a special category of goods, perishable products have characteristics of long production lead time, short sales cycle, low residual value and demand uncertainty. These characteristics influence the decision makers on making perishable product pricing policies, initial order quantity and wholesale price between supply chain members, etc.. These decisions are vulnerable to the influence of consumer strategic behavior. When facing the consumer strategy behavior, the perishable product’s supply chain upstream and downstream enterprises generally adopt the method of dynamic pricing. In addition to dynamic pricing, allowing customers to commit false failure returns is also an effective method to stimulate consumption.By means of mathematical modeling analysis, this paper tries to use consumer behavior theory, operations research, optimization theory and supply chain contract theory to study a two-stage dynamic pricing supply chain coordination problem, when use perishable goods as the research object and consider false failure returns exist. Suggestions on the relevant theory and practice are given through mathematical modeling and a case study. General centralized supply chain profit model and centralized supply chain profit model with quantity and price commitments are built. We also build decentralized supply chain model under wholesale price contract and revenue share contract. Conditions that the optimal order quantity, the optimal retail price, optimal wholesale price and income distribution coefficient should be met to achieve maximum supply chain profit are discussed under different supply chain modes. Through model analysis, we prove that the existence of the quantity commitment mechanism in a centralized supply chain could obtain greater profits, higher retail price and lower order quantity than general centralized supply chain. In the case of decentralized supply chain model, the consumer strategy behavior can weaken the effect of double marginalization and realize supply chain coordination under two contracts. But under different contracts, the optimal wholesale price and income distribution coefficient to maximize profit meet different conditions. When there is only one disturbance factor of false failure returns, maximum profit of supply chain increase with the increase of return cost.Use apparel supply chain of E company as a case study to authenticate the theoretical analysis of the mathematical model. We reveal how the disturbance factors of wholesale prices, order quantity, income distribution coefficient and return cost would influence the profit of supply chain members, and we give qualitative analysis using figures and charts.The research results of this dissertation provide theoretical suggestions on how to choose an appropriate supply chain coordination mechanism, how to make rational decisions on pricing and initial order quantity, how to negotiate wholesale price decisions and income distribution coefficient in real business.