Abstract
Considering the circulation loss of the fresh produce, we investigate management decisions with options contracts in a two-stage supply chain in which a fresh produce supplier sells to a retailer with Stackelberg model. We derive the retailer’s optimal option ordering policy and the supplier’s optimal pricing policy. Taking the integrated supply chain as the base model, we get that options contracts cannot coordinate the fresh produce supply chain when the retailer only orders options.
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Acknowledgments
The authors thank the editor and the referees for careful reading the paper. This research is partially supported by Youth Foundation for Humanities and Social Sciences of Ministry of Education of China (No. 11YJC630022), the Fundamental Research Funds for the Central Universities (No. ZYGX2009X020), and Sichuan Province Key Technology R&D Program (No. 2012FZ0003).
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Wang, C., Chen, X. (2013). Fresh Produce Supply Chain Management Decisions with Circulation Loss and Options Contracts. In: Zhang, Z., Zhang, R., Zhang, J. (eds) LISS 2012. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-32054-5_90
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DOI: https://doi.org/10.1007/978-3-642-32054-5_90
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