Modelling and simulation of fresh-product supply chain considering random circulation losses

Abstract

Random circulation losses of fresh products are also a great challenge that affects the decision-making of farmers and enterprises as well as the revenue management of both parties. Considering a fresh-product supply chain (FSC) comprising a single enterprise and a single farmer with random circulation losses, we explore the optimal ordering of the enterprise, optimal planting of the farmer, and risk-sharing mechanism of both participants. After modelling the optimal decision model of centralized FSC, we solve the optimal global solutions that exist uniquely. Then, a risk-sharing contract, called a wholesale price contract, is designed that can coordinate the decentralized FSC. Finally, a simulation of sensitivity analysis using MATLAB soft is figured out to explore the influence of random risks on the optimal solutions and the contract parameters. Furthermore, some conclusions and future researches are given.