scholarly journals The Coordination of Multi-Stage Discounts in a Dual Channel Fresh Agricultural Pro-duce Supply Chain: Minimizing the Loss of Quantity and Quality

Author(s):  
Xiaojing Zheng

This paper explores the coordination of the agricultural cooperative to supermarket or E-commerce sup-ply chain, under the condition of quantity loss with a mixed decay function of exponential and logistical distribution. The nature of this process is analyzed, and the corresponding demand and supply functions with single- and multi-stage discount strategies are constructed respectively to create a working model. The optimal discount ratios for supermarkets and agricultural cooperatives in decentralized and central-ized decision-making modes coupled with single- and multi-stage discounts are calculated respectively. Finally, a universal optimal strategy is designed, which can be applied to various quantity decay scenarios and makes the discount strategy more generalized. The results show that discounts can coordinate supply chains more effectively; not only is fresh agricultural produce sold before it starts to rot, but the benefit conflicts arising from both supermarkets vs. cooperatives and traditional vs. E-commerce channels are equilibrated. Further, multi-stage discounts are more effective than single-stage ones, but optimal discount ratios rely on the initial quantity of fresh agricultural produce in the supply chain; its market share in the traditional distribution channel; the potential market size; retail price; the price sensitivity coefficient of the channel; the cross-elasticity coefficient of prices between different channels; and the properties of the quantity loss.

2021 ◽  
Vol 99 (Supplement_3) ◽  
pp. 41-41
Author(s):  
John D Anderson ◽  
Josh Maples ◽  
James Mitchell

Abstract The COVID-19 pandemic and the associated policy responses to it were highly disruptive of supply chains throughout the economy in 2020 – disruptive on an unprecedented scale. Massive shocks on both the demand and supply sides of the market presented particular challenges in agricultural product markets. These were arguably most pronounced in the protein sector. This paper will examine these protein sector supply chain shocks, exploring the nature and causes of the market disruptions during the height of the pandemic, evaluating the effects of these shocks from an economic perspective, and identifying potential market and policy responses that could mitigate the adverse effects of similar events in the future.


2012 ◽  
Vol 10 (4) ◽  
pp. 19-30 ◽  
Author(s):  
Jinshi Zhao ◽  
Yongrui Duan ◽  
Shijin Wang ◽  
Jiazhen Huo

It is a general trend for retailers to develop dual channel to serve different customers. Engaging in internet and drop shipping has raised serious awareness and attention in the retailing field. Retailers are competing for dominance from suppliers using terminal position in many industries like appliance and fast moving consumer goods. In this paper, the authors examine such supply chain context and propose the commitment contracts for the drop shipping supply chain. In a drop-shipping model, the retailer focuses on marketing and customer acquisition, so it has more customer demand information than the supplier. To optimize profit, the retailer usually sends over-estimated demand information to the supplier. On the contrary, the supplier has to design a contract to control such a behavior of the retailer. Their study is to optimize the profit of the supplier and the whole supply chain using the commitment contract that can coordinate the retailer and the supplier in dual-channel and drop-shipping supply chain. If the retailer’s order quantity achieves centralized level, the profit of the supply chain can be maximized.


2019 ◽  
Vol 38 (6) ◽  
pp. 777-796
Author(s):  
Wei Wei ◽  
Shue Mei ◽  
Jiameng Yang ◽  
Zhiyong John Liu

Purpose More and more firms are utilizing social media as a distribution channel to sell products. By establishing business accounts on social media firms provide information service to strengthen their relationship with customers and boost sales. The purpose of this paper is to investigate the pricing, information service provision and channel strategies of firms who sell products through social media. Design/methodology/approach The authors use a game theoretical model to study a dual-channel supply chain consisting of one manufacturer and one retailer. Two scenarios are considered – under one scenario the manufacturer and under the other the retailer, respectively, solely provides information service. Both firms’ pricing decisions and profits are compared. Findings The authors find that in the dual-channel model with either the manufacturer or the retailer providing information service to enhance the demand: a firm that has stronger social ties with customers is willing to provide more information services; when the manufacturer provides information service, it charges a direct price higher than the wholesale price, and whether the direct-channel price exceeds the retail price depends on the strength of the manufacturer’s social ties with customers; when the retailer provides information service, the direct price is equal to the wholesale price, both lower than the retail price; and a firm always prefers itself rather than the other firm to provide information service. However, the whole supply chain is better off if the manufacturer rather than the retailer provides information service. Research limitations/implications Besides the relationship between firms and customers, the peer relationship among customers also impacts the supply chain performance, which might be studied in the future. Originality/value The study is novel in theoretically exploring the influence of firms’ social relationship with customers on firms’ pricing and channel strategies.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cinthya Mônica da Silva Zanuzzi ◽  
Cristian Rogério Foguesatto ◽  
Graciele Tonial ◽  
Dieisson Pivoto ◽  
Paulo Maurício Selig

PurposeDriven by scientific and technological intensification, Brazilian agribusinesses are among the main food producers and exporters worldwide. Knowledge management contributes to the development of agribusinesses. The objective of this study is to analyze knowledge management practices in the supply chain of broilers at the level of farmers and compare the differences between farmers who are members of cooperatives, and those who are suppliers of firms.Design/methodology/approachUsing data from a sample of broiler farmers (n = 240, where 80 respondents are associated with cooperatives) from Brazil, descriptive statistics were used to measure the four knowledge management dimensions (leadership, people, process and technology). The Mann–Whitney test was performed to verify the difference in the adoption of knowledge management practices between farmers who are members of cooperatives, and those who are suppliers of firms.FindingsThe results showed significant differences between the analyzed groups of broiler farmers that are members of an agricultural cooperative and suppliers of firms. Farmers who supply firms adopt knowledge management practices with greater intensity. They are also more technified and have a larger scale of production.Research limitations/implicationsThe study was conducted in a single agribusiness chain. Future studies may look at another method of knowledge management assessment to see if the results will be similar.Practical implicationsThe results can contribute to the development of programs and policies, incorporating knowledge management into agribusiness as a competitive strategy.Originality/valueWhile knowledge management is a widely studied topic, there has been little focus on this subject with regard to agribusiness. Empirical findings of an important agribusiness supply chain are provided and show the differences in knowledge management perceptions between farmers who are members of cooperatives and those who are suppliers of firms.


2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Wei Chen ◽  
Fuying Jing ◽  
Li Zhong

<p style='text-indent:20px;'>This paper describes the construction of a dual-channel electricity supply chain, with an electricity generation enterprise as the leader and an electricity retail enterprise as the follower, examining sustainability and price decision-making, and formulates a coordination contract to improve electricity supply chain performance. The main results are as follows. Firstly, sensitivity to electricity sustainability contributes to increased electricity sustainability, electricity price, electricity demand, and supply chain enterprises' profits. Secondly, a centralized model is conducive to investment in more sustainable energy production. Finally, electricity supply chain system coordination can be realized by combining revenue-sharing and cost-sharing in a fixed compensation contract.</p>


Mathematics ◽  
2020 ◽  
Vol 9 (1) ◽  
pp. 11
Author(s):  
Shiming Yi ◽  
Liying Yu ◽  
Ziyuan Zhang

Considering customer value and value-added services provided by the online retail platform, this paper studies the differential pricing of a dual-channel supply chain consisting of one manufacturer and one online retail platform. Taking customer value into account in the dual-channel supply chain, this paper constructs separate and unified pricing of the direct sales channel and online retail platform’s distribution channel, and discusses each pricing model under a decentralized decision scenario and centralized decision scenario respectively. The results show that the total profit of a supply chain under the centralized decision scenario is better than the decentralized decision scenario in different ways, and the customer value of the two channels is also higher. Compared with the unified pricing of the two channels, the profit of the manufacturer is larger while the profit of the online retail platform is smaller under the separate pricing of the two channels. Moreover, the benefit of value-added services remains important to maximize the profit of the online retail platform and the customer value at the same time. Whether it is under separate pricing or unified pricing of the two channels, the antinomies effect always exists between the customer value and the profit per unit product. In order to further improve each party’s profit in the dual-channel supply chain under the decentralized decision scenario, it is necessary to improve the customer perception of profit as much as possible, and reduce the customer perception of loss as much as possible.


2018 ◽  
Vol 13 (1) ◽  
Author(s):  
Reza Hendriyantore

The effort to put good governance in development in Indonesia is basically not new. Since the Reformation, the transformation of closed government into an open government (inclusive) has begun to be pursued. Highlighting the conflicts in the land sector that tend to strengthen lately, there are some issues that have intensified conflicts in the field, such as the lack of guaranteed land rights in various legal and policy products. In this paper, a descriptive method is considered important in identifying the applicable issue and methodological framework for addressing governance issues in Indonesia. To reduce such agrarian conflicts between farmers and the government, and as an effort to increase farmers' income, all farmers are incorporated into agricultural cooperatives. Agricultural cooperatives are structured down to the National Level. Thus, farmers participate in good access to the marketing of agricultural produce.Keywords:good governance, agrarian conflict, agricultural cooperative


Symmetry ◽  
2018 ◽  
Vol 10 (11) ◽  
pp. 549 ◽  
Author(s):  
Zilong Song ◽  
Shiwei He ◽  
Baifeng An

This paper investigated, for the first time, the game and coordination of a dual-channel, three-layered, green fresh produce supply chain, with regard to its economic, social, and environmental performance. Considering that the market demand is dual-channel priced and sensitive to the degree of greenness and the freshness-level, four game models, under different scenarios have been established. These included a centralized scenario, a decentralized scenario, and two contractual scenarios. The equilibrium solutions under the four scenarios were characterized. From the perspective of a sustainable development, the economic, social, and environmental performance of the supply chain was analyzed. To enhance the supply chain performance, two contract mechanisms were designed and the conditions for a multi-win outcome were obtained. Accordingly, many propositions and management implications were provided. The results showed that, (1) compared to the centralized supply chain case, the performance of the decentralized supply chain case is inferior; (2) in addition to increasing the concentration of the supply chain decisions, the two contracts proposed can effectively coordinate the green supply chain and improve its sustainable performance; and (3) the performance of the supply chain is positively driven by the consumers’ sensitivity to greenness degree and the freshness level of fresh produce. This paper fills a research gap and helps the participants of the channel recognize the operational decision principle of a complex green supply chain, in order to achieve a higher and a long-term sustainable-development performance.


Author(s):  
Peng Li ◽  
Di Wu

The rapid development of e-commerce technologies has encouraged collection centers to adopt online recycling channels in addition to their existing traditional (offline) recycling channels, such the idea of coexisting traditional and online recycling channels evolved a new concept of a dual-channel reverse supply chain (DRSC). The adoption of DRSC will make the system lose stability and fall into the trap of complexity. Further the consumer-related factors, such as consumer preference, service level, have also severely affected the system efficiency of DRSC. Therefore, it is necessary to help DRSCs to design their networks for maintaining competitiveness and profitability. This paper focuses on the issues of quantitative modelling for the network design of a general multi-echelon, dual-objective DRSC system. By incorporating consumer preference for the online recycling channel into the system, we investigate a mixed integer linear programming (MILP) model to design the DRSC network with uncertainty and the model is solved using the ε-constraint method to derive optimal Pareto solutions. Numerical results show that there exist positive correlations between consumer preference and total collective quantity, online recycling price and the system profits. The proposed model and solution method could assist recyclers in pricing and service decisions to achieve a balance solution for economic and environmental sustainability.


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