Cold Chain Logistics Network Design for Fresh Agricultural Products with Government Subsidy

Abstract

This paper investigates the cold chain logistics network design in the first mile for fresh agricultural products with government subsidy, involving the capacity, location of cold storage facilities, and transportation from production areas to cold storage facilities after harvest. A bi-level programming model is formulated considering the quality degradation of fresh agricultural products. Based on the proposition and KKT conditions, a solution method is designed for reformulating the bi-level model into a single-level programming model. Numerical experiments are conducted to verify the proposed model. Experimental results show that the solution method efficiently solves the problem of the cold chain logistics network design for fresh agricultural products with subsidy, and sensitivity analysis provides managerial insights for decision-makers.