A model for integrating shipment consolidation and pricing decisions in perishable product supply chains
Dong, Ming, Ph. D.
Chen, F. Frank
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This paper focuses on a simple perishable product supply chain with a vendor and multiple retailers. These retailers, densely dispersed in a distribution zone, are sensitive to price, delivery time and product quality. With the aim of optimizing vendor's average expected profit during a shipment consolidation cycle, an analytical model is proposed for this problem. The upper unbound expressions of optimal time policy and fresh-keeping cost are given based on a certain range of time parameter. Then our theoretical findings are verified by using a numerical case. Some useful managerial insights are obtained based on analyzing the sensitivity of this model on major parameters.
Paper presented at the Proceedings of the 24th International Conference on Flexible Automation & Intelligent Manufacturing, held May 20-23, 2014 in San Antonio, Texas, and organized by the Center for Advanced Manufacturing and Lean Systems, University of Texas at San AntonioIncludes bibliographical references