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Green fresh product cost sharing contracts considering freshness-keeping effort

  • Guoli Wang
  • Peiqi DingEmail author
  • Huiru ChenEmail author
  • Jing Mu
Focus

Abstract

Nowadays, along with increased public demands on the high-quality green fresh product, the downstream retailer has to spend in the packaging and cold chain transportation and the upstream farmer needs to invest more in green fresh products producing. In this paper, we investigate a green fresh product supply chain problem, in which the retailer transports and sells green fresh products to the ultimate consumer while the farmer produces green fresh product through spending a greenness improvement investment and sells green fresh products to the retailer. Since the fresh product is perishable, the retailer needs to make a costly freshness-keeping effort. Obviously, the freshness-keeping effort, the price, and the greenness improvement level will affect the demand. Thus, to demonstrate the game structure between the retailer and the farmer, a decentralized model without cost sharing, a decentralized Stackelberg cost sharing model, and a Nash bargaining model with cost sharing are formulated. Results show that: (1) The equilibrium decisions under Stackelberg model with cost sharing are larger than that of the Nash bargaining model with cost sharing, while equilibrium decisions in the decentralized model without cost sharing are the least. (2) Both greenness improvement levels in Stackelberg cost sharing contract and Nash bargaining are greater than that in decentralized model without cost sharing. (3) The retailer’s profits in Stackelberg cost sharing contract and Nash bargaining are larger than that in decentralized case without cost sharing, while the farmer’s profits in Stackelberg cost sharing contract and Nash bargaining are larger than in decentralized model without cost sharing in certain conditions. Meanwhile, a numerical example is given to illustrate the results we obtained in the theoretical analysis process.

Keywords

Green supply chain Green product Freshness-keeping effort Greenness improvement level 

Notes

Acknowledgements

This work was supported by Philosophy and Social Science Foundation of Tianjin (No. TJGL16-009Q).

Compliance with ethical standards

Conflict of interest

The authors declare that they have no conflict of interest.

Human and animal rights

This study does not contain any studies with human participants or animals performed by any of the authors.

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  1. 1.College of Economics and ManagementTianjin University of Science and TechnologyTianjinChina
  2. 2.School of ManagementNorthwestern Polytechnical UniversityXi’anChina
  3. 3.College of Mathematics and StatisticsHuanggang Normal UniversityHuanggangChina

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