Food Cold Chain Equilibrium Based on Collaborative Replenishment

 

H.J. Lan*, L. Zhao, L. Su' Z.G. and Liu

 

School of Economics & Management, Lab of Logistics Management and Technology, Beijing Jiaotong University Beijing, China. *hjlan@bjtu.edu.cn

 

ABSTRACT

This article analyzes the food cold chain (FCC) equilibrium based on collaborative replenishment policy. The entirety of collaborative replenishment (ECR) includes one supplier, one retailer and one consumer. The two players join in the non-cooperative game. Both of them pursue their own ideal benefits and achieve the equilibrium in terms of food quantity and price. A new iterative algorithm based on the theory of fixed point is designed to improve the equilibrium model. A numeric example was set to identify the applicability of the model. The parameter sensitivity analysis shows that the overall profit of ECR will increase with consumers' demand, while the customer satisfaction will decrease to some extent when the food deterioration rate and shortage cost increase, the overall profit of ECR will decrease. We find that the former leads to decreasing of the customer satisfactory and the latter do the opposite. Appropriate strategies should be chosen based on the actual situation for each equilibrium subject.

Keywords: Food cold chain, game, equilibrium, collaborative replenishment, fixed point Method.

 

DESCARGAR ARTÍCULO EN FORMATO PDF

 

Acknowledgements

This research was funded by the Lab of Logistics Management and Technology. This work is supported by Natural Science Foundation of China (Grant No. 713900334).

 

References

[1] H.J. Lan, "Research on Food Cold Chain Logistics System Collaboration", Beijing: Beijing Jiaotong University, 2009.         [ Links ]

[2] J.P. Hugot, C. Alberti, D.Berrebi, E. Bingen and J.P. Czard , "Crohn's disease: the cold chain hypothesis", Hypothesis, vol. 362, pp. 2012-2015, 2003.         [ Links ]

[3] K. Likar and M. Jevsnik, "Cold chain maintaining in food trade", Food Control, vol. 17, pp. 108, 2006.         [ Links ]

[4] Y. Liu , "The Research on Dairy Product Cold Chain under the Development of Supply Chain", Hunan: Hunan University, 2007.         [ Links ]

[5] S. Panda, S. Senapati, and M. Basu, "Optimal replenishment policy for perishable seasonal products in a season with ramp-type time dependent demand", Computers & Industrial Engineering, vol. 54, pp. 301-314, 2008.         [ Links ]

[6] K. Kanchana, and T. Anulark, "An approximate periodic model for fixed-life perishable products in a two-echelon inventory-distribution system", IJPE, vol.100, pp. 101-115, 2006.         [ Links ]

[7] A. Nagurney, J. Dong and D. Zhang, "A supply chain network equilibrium model", Transportation Research Part E, vol. 38, pp. 281-303 , Sep.2002.         [ Links ]

[8] A. Nagurney, J. cruz and D. Matsypura, "Dymatics of global supply chain supernetworks", Mathematical and Computer Modelling, vol. 37, pp. 963-983, May, 2003.         [ Links ]

[9] J. Dong, D. Zhang and A. Nagurney, "A supply chain network equilibrium model with random demands", EJOR, vol. 156, pp. 194-212 , July, 2004.         [ Links ]

[10] J.M. Cruz and Z. Liu, "Modeling and analysis of the multiperiod effects of social relationship on supply chain networks", EJOR, vol. 214, pp. 39-52, 2011.         [ Links ]

[11] A. Nagurney and L.S. Nagurney, "Dynamics and equilibria of ecological predator-prey networks as nature's supply chains", Transportation Research Part E, vol. 48, pp. 89-99, Mar, 2012.         [ Links ]

[12] C. Wua, S. Mallik, "Cross sales in supply chains: An equilibrium analysis", IJPE, vol. 126, pp. 158-167, 2010.         [ Links ]

[13] D. R. Morales, D. Vermeulen, "Existence of equilibria in a decentralized two-level supply chain", EJOR, vol. 197, pp.642-658, 2009.         [ Links ]

[14] W. Chai, H. Sun, "Price competition model in centralized and decentralized supply chains with demand disruption", JSMS, vol.3, no.3, pp.42-50,2013.         [ Links ]

[15] J. Liu, H. Wang, "The equilibrium results analysis in a competing supply chains with consumer returns", JIEM, vol. 6, no. 1, 2013.         [ Links ]

[16] M. Cedillo-Campos and C. Sánchez-Ramírez," Dynamic Self-Assessment of Supply Chains Performance: an Emerging Market Approach", JART, vol. 11, pp. 338-347, 2013.         [ Links ]

[17] J.C. Kuo, M.C. Chen, "Developing an advanced Multi-Temperature Joint Distribution System for the food cold chain", Food Control, pp. 21-559, 2010.         [ Links ]

[18] L.B. Zhang , J. Chen, and Y.Z. Ma, "Bullwhip Effect and System Cost in Time-based VMI Consolidation Replenishment System", System Engineering, vol. 24 (10), pp. 26-33, 2006.         [ Links ]

[19] L.B. Zhang, Z. Yu, "Inventory Control in Quantity-Based VMI Consolidation Replenishment System", IEM, vol. 11 (5), pp. 64-69, 2006.         [ Links ]

[20] J.S. Zhao, and H.C. Wang, "Replenishment Policy of CPFR with Continuous Stochastic Demand", Business Economics and Administration, vol. 2, pp. 28-32, 2008.         [ Links ]

[21] C.L. Chu , and V.J. Leon, "Single-retailer multi-buyer inventory coordination under private information", EJOR, vol. 191, pp. 485-503, 2008.         [ Links ]

[22] J.L. Yu, J.H. Ding, and P.S. Chen, "Coordinating replenishment mechanisms in supply chain: From the collaborative supplier and store-level retailer perspective", IJPE, vol. 123, pp. 221-234, 2010.         [ Links ]

[23] C. Lin, and Y. Lin, "A cooperative inventory policy with deteriorating items for a two-echelon model", EJOR, vol. 178, pp. 92-111, 2007.         [ Links ]

[24] S.F. Du, L. Liang, J.J. Zhang, and Z.G. Lu, "Hybrid Replenishment and Dispatching Policy with Deteriorating Item for VMI: Analytical Model, Optimization and Simulation", Chinese Journal of Management Science, vol. 15 (2), pp. 64-69, 2007.         [ Links ]

[25] S. Hernandez " Improved Golden-Section Algorithm for the Multi-Item Replenishment Problem", JART,vol. 10(3), pp. 388-397, 2012.         [ Links ]

[26] E. Abad, F. Palacio M. Nuin, A. González de Zárate, A. Juarros, J.M. Gómez and S. Marco, "RFID smart tag for traceability and cold chain monitoring of foods: Demonstration in an intercontinental fresh fish logistic chain", Journal of Food Engineering, pp. 394-399, 2009.         [ Links ]

[27] X.M. Lu, and Y.M. Xi, , "A Dynamic Optimal Control Model for Optimal Price, Quality and Advertising Policies", System Engineering—Theory & Practice, vol. 12, pp. 17-22, 1996.         [ Links ]

[28] M. Esmaeili, M.B. Aryanezhad, and P. Zeephongsekul, "A game theory approach in seller-buyer supply chain", EJOR, vol. 195, pp. 442-448, 2009.         [ Links ]

[29] J. Dong, D. Zhang and A. Nagurney, "A supply chain network equilibrium model with random demands", EJOR, vol. 166, pp. 194-212, 2004.         [ Links ]

[30] R.D. Huang, "Equilibrium theory and its application in the economic field". Harbin: Harbin Engineering University, 2008.         [ Links ]