Quality And Preservation Decision Of Fresh Food Supply Chain Considering Risk Appetite

With the improvement of our life, the higher quality life is required, especially for fresh food. Consumers would like to buy the fresh food with higher quality. However, the quality of fresh food products affected by the type, temperature, ventilation, humidity, light and other factors, depending on the physiological state before being picked and preservation level after being picked. The quality of fresh food is decided by supplier, the preservation level is decided by the retailer. Due to the high profits of fresh food, so fresh food supply chain members are willing to spend some cost to improve the quality of fresh food. Because each member of the supply chain has different risk preferences with the uncertainly of the market, so they will make different decisions warranty. Therefore, a fresh supply chain with a risk preference’s supplier and a risk preference’s retailer will be studied.Firstly, quality and preservation decision-making will be studied under a risk-neutral fresh food supply chain. This paper constructs a demand function including quality level and preservation level based on the on the perspective of the consumer, and then the profit utility functions were given in centralized and decentralized decision-making policy with the retailer is responsible for the price and preservation decision-making and the supplier is responsible for the quality decision-making. The analytic solutions will be obtained in centralized and supplier driven stackelberg game and retailer driven stackelberg game decision-making respectively, and finally the simulation analysis of different influencing factors to the optimal decision and the comparison between the three decision-making strategies will be analysized. Secondly, the risk of fresh supply chain members preferences were taken into account, this paper constructed the models in three different Strategies with the mean and variance of expected utility profits, then solved the optimal quality level and preservation level and the price level under a variety of strategies. Through comparative analysis of simulated to compare risk appetite factor on the optimal decision under different decision strategies. This paper show that the quality of fresh supply chain and profits are on an increasing function of quality and preservation factor, but decreasing of price factor. And if the members of fresh food supply chain hate risk, the expected utility of the entire supply chain is smaller, but the quality and centralized decision-making and profit is better than the case of decentralized decision-making. Then an example of Yonghui supermarket is used to identify the conclusion before.Finally, the summary and research prospects will be made.