Supply Chain Management for Fresh Fruit with Consideration of Contractual Coordination

Abstract

With the rise of technology over time the quality of our life has dramatically elevated and therefore consumers gradually pay attention to the significance of the quality and value of the merchandise Owing to the rapid growth of agricultural technology the fresh fruit in quality agriculture has been popular on the market However the management of this sort of products supply chain is much more challenging due to the fact that the sales of such products are more susceptible to go moldy than the general fresh fruit products Moreover either quality agriculture or general fruit the wholesaler of both is the leader in the supply chain which shares the maximum benefits as well In this situation this study proposes a two-stage supply chain model that organizes farmers and wholesalers This model considers the planting risks and uncertainties of demand also take precious fresh fruit product that has characteristic of perishability as the core products In order to coordinate this supply chain and improve the farmer’s profit this study attempts to use the contract as a tool of coordinating channels This study formulates two kinds of contracts: (1) The Quantity-buy-back contract and (2) The Cost-sharing contract Through the comparison and analysis of contracts we found that the cost-sharing contract that combines the concept of cool-chain can obtain greater benefits than that of the quantity-buy-back contract Also the results indicate that reducing the level of perishability of the product is important Therefore this study can prove that applying cool-chain is an adequate strategy when facing a problem aforementioned in the supply chain Finally this study displays the result of applying the contract by case-study and sensitivity-analysis this study also helps readers to understand the impact of features of the product and the market factors on contracts and provides some inspiration that can be referenced for managers to make decisions

Date of Award	2020
Original language	English
Supervisor	Yeu-Shiang Huang (Supervisor)