Research on the Network Equilibrium of Fresh Agricultural Product Supply Chain with Third Party Logistics Participation in Decision Making

Abstract

Introducing Third-party logistics into the supply chain of fresh agricultural products can reduce the logistics cost of the supply chain and improve the freshness and quality of fresh agricultural products. Taking the fresh agricultural product supply chain network, which includes three decision-making entities: fresh agricultural product suppliers, 3PL service providers, and retailers, as the research object, a fresh agricultural product supply chain network equilibrium model is constructed using variational inequality theory. The impact of 3PL service providers' logistics service level on their equilibrium transaction volume and overall profit is studied. The research results show that when Third-party logistics is involved in the supply chain of fresh agricultural products, considering the logistics service level of 3PL service providers, with the improvement of service level, the overall profit of the supply chain of fresh agricultural products increases. It is a beneficial attempt to realize the profit of the supply chain of fresh agricultural products to improve the freshness and quality of fresh agricultural products through Third-party logistics; When the logistics service level rises to a certain level, and the service level continues to improve, the overall profit growth of the supply chain decreases. It is necessary to improve the impact of logistics service level on the freshness and quality of fresh agricultural products through other forms.