Coordination of Online Shopping Supply Chain Considering Fresh Product Preservation Efforts and Cargo Damage Costs
Abstract
:1. Introduction
- What impact do different decision orders have on the benefits of stakeholders and system benefits?
- How do the different cost-bearers of agricultural product damage affect the decisions of stakeholders?
- What coordination method can be utilized to address the issue of low preservation levels in traditional models?
2. Literature Review
2.1. Research on the Supply Chain Considering Preservation Efforts
2.2. Supply Chain Research with the Participation of TPL
2.3. Research Status of the Fresh Supply Chain
3. Description and Assumptions
4. Analysis of the Model
4.1. Centralized Model
4.2. Decentralized Model of LR
4.3. Decentralized Model of LL
4.4. Decentralized Model of RL
4.5. Decentralized Model of RR
5. Coordination Mechanism
6. Numerical Simulation
- The set parameters meet all the assumptions and conditions mentioned above.
- The parameter values set are consistent with the real-life situation of the agricultural e-commerce market.
- (1)
- The preservation effort level, the interests of both decision-making parties, and the system profit have all reached their optimal levels in the centralized model. For example, the preservation effort level and market demand in the centralized mode are the largest in the five models, at 0.840 and 40.017, respectively. At the same time, the system profit under the centralized model is also the largest, at 769.920. However, this differs from the actual situation, which also proves the necessity of a joint contract.
- (2)
- When TPL takes the lead in decision-making, it prioritizes its logistics service pricing and level of preservation efforts. In the LR and LL models, the logistics service quotation in the LL model is 30.589, while the logistics service quotation in the LR model is 29.617. The main reason for this difference is that TPL often tends to increase logistics service quotations to share costs rather than increase preservation efforts due to the need to bear damage costs. Therefore, in both the LR and LL models, the level of preservation efforts, both parties, and system profits are the same.
- (3)
- According to the simulation values, we can see that the sales price in the RR model is 40.418, slightly higher than the RL model, while the level of preservation effort is only 0.251, which is much lower than the RL model. This is because when the online store takes the lead in decision-making and bears the cost of damaged goods, they are more inclined to compensate for the loss of goods damage costs by increasing sales prices. In the RL model, TPL has to reduce the cargo damage costs by increasing the level of preservation efforts. Therefore, the level of preservation efforts and revenues of both parties in the RL model are higher than those in the RR model.
- (4)
- Under coordinated decision-making, we can also see that when the price of logistics services drops from 30 to the range of 2.5 to 5, the logistics service provider provides logistics services at a price lower than the logistics cost, but its profits actually increase. This indicates that the profit source of TPL has undergone a huge transformation from logistics service fees to profit sharing in the online store. This transformation also increases the cost of preservation, ultimately increasing the profits of both parties and achieving Pareto optimality.
6.1. Sensitivity Analysis
6.2. Discussion on the Results
7. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
Appendix A
Appendix B
Appendix C
Appendix D
Appendix E
Appendix F
Appendix G
Appendix H
Appendix I
References
- Zan, M.Y.; Chen, G.; Wang, Z.B. Development of e-commerce of fresh agricultural products in China: Progress, difficulties and strategies. Econ. Probl. 2020, 12, 68–74. [Google Scholar]
- Dai, L.; Jiang, L.; Li, L. The recent condition, problems and countermeasure research of fresh food on e-commerce. Res. Chin Mark Regul. 2022, 10, 32–34. [Google Scholar]
- Yu, Y.L.; Feng, Y. Impact of cold-chain service modes on decisions and performance in a fresh agri-product supply chain. Chin. J. Manag. Sci. 2021, 29, 135–143. [Google Scholar]
- Chen, L.; Huang, L. Coordination contract of agricultural product supply chain considering TPL’s preservation level affected by outdoor temperature. J. Syst. Eng. 2023, 38, 344–356+371e. [Google Scholar]
- Feng, Y.; Hu, Y.; He, L. Research on coordination of fresh agricultural product supply chain considering fresh-keeping effort level under retailer risk avoidance. Discrete Dyn. Nat. Soc. 2021, 2021, 1–15. [Google Scholar] [CrossRef]
- Li, Y.; Tan, C.; Ip, W.H.; Wu, C. Dynamic blockchain adoption for freshness-keeping in the fresh agricultural product supply chain. Expert Syst. 2023, 217, 119494. [Google Scholar] [CrossRef]
- Xu, G.; Wu, H.; Liu, Y.; Wu, C.H.; Tsai, S.B. A research on fresh-keeping strategies for fresh agricultural products from the perspective of green transportation. Discrete Dyn. Nat. Soc. 2020, 2020, 1–12. [Google Scholar] [CrossRef]
- Guo, F.; Zhong, Y. Research on government price subsidy strategy considering the freshness of agricultural products from the perspective of rural revitalization. Prices Mon. 2022, 1, 52–61. [Google Scholar]
- Tan, M.; Tu, M.; Wang, B.; Zou, T.; Cheng, H. A two-echelon agricultural product supply chain with freshness and greenness concerns: A cost-sharing contract perspective. Complexity Int. 2020, 2020, 1–13. [Google Scholar] [CrossRef]
- Kamaruzaman, N.A.; Omar, M. Inventory model for a fresh product when demand depends on freshness, price, inventory level and expiration date under markdown policy. J. Intell Fuzzy. Syst. 2020, 39, 3453–3461. [Google Scholar] [CrossRef]
- Yan, B.; Chen, Y.; He, S. Decision making and coordination of fresh agriculture product supply chain considering fairness concerns. Rairo-Oper Res. 2020, 54, 1231–1248. [Google Scholar] [CrossRef]
- Yan, B.; Chen, X.; Cai, C.; Guan, S. Supply chain coordination of fresh agricultural products based on consumer behavior. Comput. Oper. Res. 2020, 123, 105038. [Google Scholar] [CrossRef]
- De Carvalho, P.R.V.; Naoum-Sawaya, J.; Elhedhli, S. Blockchain-enabled supply chains: An application in fresh-cut flowers. Appl. Math. Modell. 2022, 110, 841–858. [Google Scholar] [CrossRef]
- Vlajic, J.V.; Mijailovic, R.; Bogdanova, M. Creating loops with value recovery: Empirical study of fresh food supply chains. Prod. Plan. Control. 2018, 29, 522–538. [Google Scholar] [CrossRef]
- Herbon, A. Should retailers hold a perishable product having different ages? The case of a homogeneous market and multiplicative demand model. Int. J. Prod. Econ. 2017, 193, 479–490. [Google Scholar] [CrossRef]
- Wang, X.; Fan, Z.; Liu, Z. Optimal markdown policy of perishable food under the consumer price fairness perception. Int. J. Prod. Res. 2016, 54, 5811–5828. [Google Scholar] [CrossRef]
- Cai, X.; Chen, J.; Xiao, B.; Xu, X. Optimization and coordination of fresh product supply chains with freshness-keeping effort. Prod. Oper. Manag. 2010, 19, 261–278. [Google Scholar] [CrossRef]
- Wang, H.; Shen, C. Decision and coordination of fresh food dual-channel supply chain considering fresh-keeping efforts and CSR. J. Uestc. (Soc. Sci. Ed). 2023, 25, 77–87. [Google Scholar]
- Wu, Q.; Mu, Y.; Feng, Y. Coordinating contracts for fresh product outsourcing logistics channels with power structures. Int. J. Prod. Econ. 2015, 160, 94–105. [Google Scholar] [CrossRef]
- Wang, D.; Zhu, M.; Wang, T. Research on the cost sharing contract of fresh-product supply chain’s fresh-keeping efforts. Ind. Eng. Manag. 2020, 25, 36–43. [Google Scholar]
- Zhang, D.; Xu, Y.; Ning, J.; Wang, D.; Hou, C.; Ren, C.; Huang, C.; Wang, S. Research progress in the application of CO2 refrigeration technology to agricultural product cold chain logistics preservation. J. Agric. Eng. Res. 2023, 39, 12–22. [Google Scholar]
- Wu, J.; Zheng, L.; Ba, X.; Yang, M. Progress of research on cold chain logistics technology for fruit and vegetable agricultural products. J. Beijing Jiaotong Univ. (Soc. Sci. Ed.) 2023, 22, 119–135. [Google Scholar]
- Xiang, M. Research and application progress of cold-chain logistics packaging technology of fresh agricultural products. Food Mach. 2023, 39, 103–109+141. [Google Scholar]
- Guo, W.; Tang, X.; Cui, S.; Zhang, Q.; Zhao, J.; Mao, B.; Zhang, H. Recent advance in quality preservation of non-thermal preservation technology of fresh mushroom: A review. Crit. Rev. Food Sci. Nutr. 2023, 1–17. [Google Scholar] [CrossRef] [PubMed]
- Pace, B.; Cefola, M. Innovative preservation technology for the fresh fruit and vegetables. Foods 2021, 10, 719. [Google Scholar] [CrossRef] [PubMed]
- Wu, Q.; Dan, B. Revenue sharing coordinating contracts between a TPL service provider and a client enterprise for low value perishable products. J. Ind. Eng. Manag. 2009, 23, 40–44. [Google Scholar]
- Chen, X.; Wang, Y.; Yu, H. Three-level supply chain model for deteriorating items with time-varying demand based on the third-party logistics provider. Chin. J. Manag. Sci. 2014, 22, 65–73. [Google Scholar]
- Cai, X.; Chen, J.; Xiao, Y.; Xu, X.; Yu, G. Fresh-product supply chain management with logistics outsourcing. Omega 2013, 41, 752–765. [Google Scholar] [CrossRef]
- You, J.; Lao, S. Supply chain coordination involving logistics service quality of TPLSP. J. Tongji. Univ. (Nat. Sci. Ed). 2012, 40, 1422–1427. [Google Scholar]
- Jiang, L.; Wang, Y.; Liu, D. Logistics cost sharing in supply chains involving a third party logistics provider. Cent. Eur. Joper. Res. 2016, 24, 207–230. [Google Scholar] [CrossRef]
- Yang, C.; Dan, B.; Wu, Q.; Zhang, X. Coordinating contract between retailer of fresh agricultural product and logistics service provider based on fresh-keeping effort. Technol. Econ. 2010, 29, 122–126. [Google Scholar]
- Wagner, H.; Whitin, T. Dynamic version of the economic lot size mode. Manage. Sci. 1958, 5, 89–96. [Google Scholar]
- Bai, S.; Xie, S. E-commerce of fresh agricultural products supply chain coordination based on compound contract. Control. Decis. 2018, 33, 2104–2112. [Google Scholar]
- Yue, L.; Liu, Y.; Zhu, G. Research on fresh products dual-channel coordination contract in retailer dominated supply chain. Soft. Sci. 2016, 30, 123–128, 144. [Google Scholar]
- Yang, L.; Tang, R. Comparisons of sales modes for a fresh product supply chain with freshness-keeping effort. Transport. Res. E-Log. 2019, 125, 425–448. [Google Scholar] [CrossRef]
- Li, C.; Fan, D.; Wang, X. Contract design of ‘online to offline’ for dual-channel supply chain under bidirectional fairness concerns. Chin. J. Manag. Sci. 2021, 29, 122–133. [Google Scholar]
- Bai, H. Research on conflict and pricing of mixed dual-channel supply chain for fresh agricultural products. Logistics. Technol. 2019, 38, 93–100+121. [Google Scholar]
- Cao, X.; Wang, Y.; Xue, F.; Liu, X. Coordination strategies for dual-channel supply chain of fresh agricultural products considering the fresh-keeping effort of supplier. Chin. J. Manag. Sci. 2021, 29, 109–118. [Google Scholar]
- Zhang, X.; An, S. Dual-channel supply chain coordination of fresh products considering the retailer’s fairness concern under fresh-keeping costs sharing. Ind. Eng. Manag. 2021, 26, 15–22. [Google Scholar]
- Li, H.; Hu, M.; Ma, S. Coordination strategies for online shopping supply chain of fresh agricultural products considering the influence of customer demands. J. Inn. Mong. Univ. Technol. 2021, 40, 384–394. [Google Scholar]
- Zhang, H.; Chen, Y. Supply chain coordination of three-level fresh e-commerce based on asymmetric information of freshness-keeping effort level. Logistics Sci-Tech. 2022, 45, 103–107. [Google Scholar]
- Ma, X.; Zhao, Y.; Bai, Q.; Bo, H. Optimal strategies and coordination of three-echelon cold chain of fresh products considering freshness-keeping and carbon abatement. Chin. J. Manag. Sci. 2023, 31, 52–61. [Google Scholar]
- Feng, Y.; Yu, Y.; Zhang, Y.; Wu, Q. Coordination in a three-echelon supply chain of fresh agri-products with TPLSP’s participation in decision-making. J. Ind. Eng. Eng. Manag. 2015, 29, 213–221. [Google Scholar]
- Ha, A.; Tong, S.; Zhang, H. Sharing demand information in competing supply chains with production diseconomies. Math. Oper. Res. 2011, 57, 566–581. [Google Scholar] [CrossRef]
- Zhang, K.J.; Ma, M.Q. Research on dual-channel supply chain coordination considering fresh e-tailer’s returns. J. Donghua Univ. (Nat. Sci. Ed.) 2021, 47, 116–123. [Google Scholar]
- Qin, X.; Su, Q.; Hong, Z.; Wang, S. Contract coordination mechanism between online store and TPL under logistics service quality constraint. J. Tongji Univ. (Nat. Sci. Ed.) 2014, 9, 1444–1451. [Google Scholar]
Symbol | Definitions |
---|---|
The abbreviation for fresh product online store | |
The abbreviation for TPL service provider | |
Unit sales price of fresh products | |
Unit logistics service quotation | |
Unit logistics service cost | |
The initial level of preservation efforts for fresh products | |
Effort level of fresh product preservation | |
Capacity coefficient of preservation cost for TPL | |
The damage rate of fresh food | |
The initial damage rate of fresh products | |
Preservation control effect | |
Sensitivity coefficient of fresh product sales prices | |
Unit loss cost of fresh products | |
Potential market demand for fresh products | |
Sensitivity coefficient of preservation effort level | |
Market requirement for fresh products | |
The proportion of shared profits in online stores | |
The proportion of online stores bearing the cost of preservation | |
Profit of online stores for fresh agricultural products | |
Profit of TPL service providers | |
Gross profit of the online shopping SC |
TPL-First Decision (TPL-Led) | Online Store-First Decision (Online Store-Led) | |
---|---|---|
The online store bears the cost of cargo damage | LR model | RR model |
The TPL bears the cost of cargo damage | LL model | RL model |
Decision Types | |||||||
---|---|---|---|---|---|---|---|
Model of LR | 40.397 | 29.617 | 19.617 | 0.514 | 192.406 | 377.424 | 569.830 |
Model of LL | 40.397 | 30.589 | 19.617 | 0.514 | 192.406 | 377.424 | 569.830 |
Model of RL | 40.203 | 20.964 | 20.008 | 0.521 | 384.960 | 192.480 | 577.440 |
Model of RR | 40.418 | 19.682 | 19.364 | 0.251 | 372.562 | 187.280 | 559.843 |
Centralized model | 30.328 | — | 40.017 | 0.840 | — | — | 769.920 |
Coordinated decision-making | 30.328 | 2.5 | 40.017 | 0.840 | 192.725 | 577.195 | 769.920 |
30.328 | 3 | 40.017 | 0.840 | 231.268 | 538.653 | 769.920 | |
30.328 | 3.5 | 40.017 | 0.840 | 269.810 | 500.110 | 769.920 | |
30.328 | 4 | 40.017 | 0.840 | 308.352 | 461.568 | 769.920 | |
30.328 | 4.5 | 40.017 | 0.840 | 346.895 | 423.025 | 769.920 | |
30.328 | 5 | 40.017 | 0.840 | 385.438 | 384.482 | 769.920 |
Disclaimer/Publisher’s Note: The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of MDPI and/or the editor(s). MDPI and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content. |
© 2024 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).
Share and Cite
Ren, H.; Hu, Y. Coordination of Online Shopping Supply Chain Considering Fresh Product Preservation Efforts and Cargo Damage Costs. J. Theor. Appl. Electron. Commer. Res. 2024, 19, 1337-1357. https://doi.org/10.3390/jtaer19020068
Ren H, Hu Y. Coordination of Online Shopping Supply Chain Considering Fresh Product Preservation Efforts and Cargo Damage Costs. Journal of Theoretical and Applied Electronic Commerce Research. 2024; 19(2):1337-1357. https://doi.org/10.3390/jtaer19020068
Chicago/Turabian StyleRen, Haiping, and Yingxin Hu. 2024. "Coordination of Online Shopping Supply Chain Considering Fresh Product Preservation Efforts and Cargo Damage Costs" Journal of Theoretical and Applied Electronic Commerce Research 19, no. 2: 1337-1357. https://doi.org/10.3390/jtaer19020068
APA StyleRen, H., & Hu, Y. (2024). Coordination of Online Shopping Supply Chain Considering Fresh Product Preservation Efforts and Cargo Damage Costs. Journal of Theoretical and Applied Electronic Commerce Research, 19(2), 1337-1357. https://doi.org/10.3390/jtaer19020068