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Chinese Journal of Management Science ›› 2023, Vol. 31 ›› Issue (8): 100-110.doi: 10.16381/j.cnki.issn1003-207x.2020.1715

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Research on Preservation Strategies for Fresh Produce Considering Quality and Quantity Loss Control

Lei WANG1,2(),Bin DAN2   

  1. 1.Business School, Southwest University of Political Science & Law, Chongqing 401120, China
    2.School of Economics and Business Administration, Chongqing University, Chongqing 400030, China
  • Received:2020-09-07 Revised:2022-07-10 Online:2023-08-15 Published:2023-08-24
  • Contact: Lei WANG E-mail:wanglei@swupl.edu.cn

Abstract:

The fresh produce will show both quality and quantity losses over time as a result of the characteristics of perishable deterioration, and then affect the decision-making of the fresh enterprise. More and more scholars start to research the preservation decisions and other relevant decisions such as pricing, inventory control and supply chain coordination. However, most of them focused on preservation efforts or investment in preservation, and did not consider the choice of multiple preservation strategies. In real life, the same preservation cost may produce three different preservation strategies: significantly controlling the quality loss, significantly controlling the quantity loss and simultaneously controlling the double loss, which makes retailers have to choose preservation strategies.The main work in this paper includes the following four parts. First, the fresh produce inventory model considering quality and quantity loss and the retailer profit model under three preservation strategies are established. Second, the retailer's choice of preservation strategies and its optimal ordering and pricing decisions are analyzed contrastively. Third, the retailer's choice of preservation strategy affected by the impact of price and freshness sensitivity coefficient, wholesale price, preservation cost and preservation effect are analyzed. Finally, some conclusions are verified through strategies.The results show that, first, under the preservation strategy of simultaneously controlling the double loss of quality and quantity, the retailor should implement the decision of “high price and high order quantity” if the quality loss control effect is relatively better. On the contrary, the retailor should implement the decision of “low price and high order quantity” or “low price and low order quantity” according to the comprehensive influence of factors such as potential market demand, price and freshness sensitivity coefficient, and wholesale price. Second, the retailor should choose the preservation strategy that significantly controls the quality and adopt the decision of “high price and high order quantity” when the ratio of the sensitivity coefficient of market demand to price and freshness and the wholesale price are relatively low, the preservation strategy that simultaneously controlling the double loss and adopt the decision of “general price and medium order quantity” when the ratio of the sensitivity coefficient of market demand to price and freshness and the wholesale price are within a certain range, he preservation strategy that significantly controls the quantity and adopt the decision of “low price and low order quantity” when the ratio of the sensitivity coefficient of market demand to price and freshness and the wholesale price are relatively high. Third, despite paying the same preservation cost, the lower the preservation cost and the sensitivity coefficient of the preservation effect, the retailer will only choose the preservation strategy with a single loss control effect; on the contrary, the retailer is more likely to consider choosing the preservation strategy with a double loss control effect.

Key words: fresh produce, loss control, preservation strategies, quality loss, quantity loss

CLC Number: