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Joint procurement and pricing of fresh produce for multiple retailers with a quantity discount contract

Joint procurement and pricing of fresh produce for multiple retailers with a quantity discount contract

Zheng, Qi, Zhou, Li ORCID: 0000-0001-7132-5935, Fan, Tijun and Ieromonachou, Petros ORCID: 0000-0002-5842-9585 (2019) Joint procurement and pricing of fresh produce for multiple retailers with a quantity discount contract. Transportation Research Part E: Logistics and Transportation Review, 130. pp. 16-36. ISSN 1366-5545 (doi:https://doi.org/10.1016/j.tre.2019.08.013)

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Abstract

This study considers a fresh produce supply chain consisting of one supplier and multiple retailers with a quantity discount contract in two scenarios—independent procurement and joint procurement. The supplier’s optimal pricing decision and the retailers’ optimal procurement decisions under the quantity discount contract are investigated. Furthermore, the impact of the deterioration rate on the profit of supply chains is examined. The results show that joint procurement is more profitable than independent procurement and guarantees a win-win outcome. More importantly, retailers will be motivated to form a grand coalition when the total profit can be rationally allocated among them.

Item Type: Article
Uncontrolled Keywords: Fresh produce; Supply chain; Joint procurement; Contract; Coordination
Faculty / Department / Research Group: Faculty of Business
Faculty of Business > Department of Systems Management & Strategy
Faculty of Business > Networks and Urban Systems Centre (NUSC)
Faculty of Business > Networks and Urban Systems Centre (NUSC) > Connected Cities Research Group
Last Modified: 09 Sep 2019 13:38
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
Selected for GREAT 2019: None
URI: http://gala.gre.ac.uk/id/eprint/25090

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