Coordination of 3-Tier Supply Chain of Fresh Agricultural Products under Linear Time-Varying Demands

Abstract

Abstract: The supply chain considered in this paper is composed of a manufacture，a distributor, and a retailer for fresh agricultural products. For such products, the demands are timevarying. A mathematical model is developed to describe the coordination for such a supply chain. Based on this model, analysis shows that the supply chain can be coordinated by using time discounting contracts by properly regulating the contract parameters. Method is presented to determine the range of the contract parameters such that winwin can be realized. Besides, sensitivity analysis is conducted with respect to deterioration rate and demand variation, respectively. Results show that the retailer is able to extend the order cycle by improving inventory control.

Key words: fresh agricultural products, supply chain coordination, linear time-varying demands, time discounting contract

Lin Lue, Lei Xiao-yan, Dan Bin. Coordination of 3-Tier Supply Chain of Fresh Agricultural Products under Linear Time-Varying Demands[J]. Industrial Engineering Journal , 2011, 14(4): 46-51.

References

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