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Research on Ordering Strategy of Fresh Products with Fresh-keeping Effort

Author: YangLiu
Tutor: XuHe
School: Huazhong University of Science and Technology
Course: Management Science and Engineering
Keywords: Ordering strategy Fresh product Fresh-keeping effort Dual suppliers
CLC: F274
Type: Master's thesis
Year: 2011
Downloads: 19
Quote: 0
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Abstract


At present, the increasing speed of product innovation and the rapid changing ofcustomer preference lead that product lifetimes are shortened greatly, so this situationrequires that when enterprises make an ordering decision, they need to take full account ofthe impact of perishability. As one kind of perishable products, besides the commonperishable characteristics such as obsolescence and deterioration, fresh product also hassome other characteristics like obvious seasonal and geographical features, the severerequire of fresh keeping and the demanding value affected by the freshness of the product.Besides that the objective is to study the ordering decision problem of fresh productrelated to long-distance transportation, this thesis summarizes the perishable goodsinventory in supply chain on previous researches, and for a certain amount ofimprovement and development, it analyses the existing order policy model to determinethe research direction of ordering policy based on fresh-keeping effort. Starting from theperishable characteristics of fresh product and considering about the condition of theuncertain supply of distant suppliers and the uncertain risk of transportation, we study thesupply decisions of upstream suppliers and the ordering decisions of downstream retailers.Two cases are considered in this thesis: one involves only one long-distance supplier and alocal retailer in a single-product supply chain system, and the other involves a localsupplier, a long-distance supplier and a local retailer in a single-product supply chainsystem. In both cases, in the decentralized supply chain system, we solve and analyze thebest decisions about retailers and suppliers for their own profit-maximizing. This model isbased on the classic newsboy model, and further expands the research on orderingstrategies of fresh products with the fresh-keeping effort and transportation riskuncertainty on this basis. Under the condition of full account of the special nature of freshproduct, in order to obtain the optimal ordering policy, this thesis has a theoretical valueand certain practical significance for further improvement in the related field.

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