Designing a two-stage model for the resilient agri-food supply chain network under dynamic competition
ISSN: 0007-070X
Article publication date: 12 October 2023
Issue publication date: 8 January 2024
Abstract
Purpose
Supply chain risk management can effectively reduce the loss of retailers. In this regard, retailers need to consider the competition risks of competitors in addition to the disruption risks. This paper designs a resilient retail supply chain network for perishable foods under the dynamic competition to maximize retailer's profits.
Design/methodology/approach
A two-stage mixed-integer non-linear model is presented for designing the supply chain network. In the first stage, an equilibrium model that considers the characteristics of perishable foods is developed. In the second stage, a mixed integer non-linear programming model is presented to deal with the strategic decisions. Finally, an efficient memetic algorithm is designed to deal with large-scale problems.
Findings
The optimal the selection of suppliers, distribution centers and the order allocation are found among the supply chain entities. Considering the perishability of agri-food products, the equilibrium retail price and selling quantity are determined. Through a numerical example, the optimal inventory period under different maximum shelf life and the impact of three resilient strategies on retailer's profit, selling price and selling quantity are analyzed.
Research limitations/implications
As for future research, the research can be extended in a number of directions. First, this paper studies the retail supply chain network design problem under competition among retailers. It can be an interesting direction to consider retailers competing with suppliers. Second, the authors can try to linearize the non-linear model and solve the large-scale integer programming problem by exact algorithm. Finally, the freshness of perishable foods gradually declines linearly to zero as the maximum shelf life approaches, and it would be a meaningful attempt to consider the freshness of perishable foods declines exponentially.
Originality/value
This paper innovatively designs the resilient supply chain network for perishable foods under dynamic competition. The retailer's dynamic competition and resilient strategies are considered simultaneously when designing supply chain network for perishable foods. In addition, this paper gives insights into how to obtain the optimal inventory period and compare the retailer's resilient strategies.
Keywords
Acknowledgements
This research was supported by the Social Science Planning Research Project of Shandong Province [Grant number: 19DKSJ04].
Citation
Li, Z. and Zhang, C. (2024), "Designing a two-stage model for the resilient agri-food supply chain network under dynamic competition", British Food Journal, Vol. 126 No. 2, pp. 662-681. https://doi.org/10.1108/BFJ-12-2022-1135
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited