Coordination And Optimization Of Fresh Product Supply Chain With Option Contract Considering Freshness-keeping Effort

In recent years,with the improvement of living standards,consumers are increasingly requiring the quality of fresh agricultural products.Fresh agricultural products have the characteristics of short shelf life and easy corruption.At present,the supply chain management system of fresh agricultural products is not perfect,and the freshness-keeping consciousness and cooperation consciousness of each member is weak.This paper studies a two-level supply chain consisting of a retailer and a producer and introduces preservation efforts to carve out the preservation efforts of the retailer with respect to the quality loss and quantity loss of fresh produce,while introducing option contracts and two-stage decisionmaking into the decision-making process of the supply chain to study the coordination effect of options contracts on the supply chain.In this paper,we first study the single-stage decision model under option contracts,and the results show that the optimal option purchase volume,total supply chain profit,and preservation effort are positively proportional.The optimal spot order quantity is inversely proportional to the preservation effort.Compared with decentralized decision-making,the introduction of option contracts leads to an increase in retailer profits,a decrease in supplier profits,and an increase in total supply chain profits.When the option price satisfies certain conditions,perfect coordination of the supply chain can be achieved.Further,the profitsharing contract is designed to motivate retailers and producers to actively participate in the option contract to realize the benefit-sharing between them.Finally,the validity of the model is verified by numerical simulation.Further,this paper investigates the decision model under two-stage decision-making.Because product freshness and pricing affect market demand,we assume that the pricing of fresh produce follows a two-stage decision,with price reduction after the freshness of the product decreases.We compare the two-stage decision models under three scenarios:centralized,decentralized,and option contracts,respectively,to explore the impact of the freshness-keeping effort on the supply chain and the coordination effect of option contracts on the supply chain.The results show that under different decision situations,the preservation effort has a critical value,and when it is less than the critical value,the retailer’s profit is positively proportional to the preservation effort;when it is greater than the critical value,the retailer profit is inversely proportional to the preservation effort.The introduction of option contracts can increase the optimal total order quantity,reduce the sales price,and increase the supply chain profit.When the freshness preservation effort satisfies certain conditions,the total profit under the option contract is equal to the total profit under the centralized decision,and perfect supply chain coordination can be achieved.Finally,the theoretical reasoning and conclusions of the model are verified by numerical simulation,and the influence of the freshness-keeping effort on the supply chain decision and coordination effect is analyzed.This study illustrates that freshness-keeping effort is crucial in the integrated operation of fresh agricultural products supply chain,and reasonable freshness-keeping efforts can not only guarantee product quality but also maximize profit and achieve perfect supply chain coordination.