Dynamic Decision-making and Coordination Optimization of Fresh Produce Supply Chain

Abstract

As an important part of modern agriculture, fresh agricultural products are closely related to the lives of residents and are an important cornerstone of national economic development. In recent years, consumer demand for high-quality, high-freshness products has grown, making supply chain management more difficult. In order to maintain competitiveness in the market, supply chain members need to dynamically adjust their freshness efforts and adopt coordination mechanisms to optimize benefits. Based on differential game theory, this paper analyzes the behavior and equilibrium strategy of supply chain under centralized decision-making, decentralized decision-making and coordination mechanism, studies the impact of key parameters such as consumer freshness preference, the degree of influence of freshness effort on freshness on decision-making, as well as the relationship between the dynamic change of supply chain members' profits in different scenarios, and conducts numerical simulation using MATLAB. The results show that consumer freshness preference positively affects product freshness and preservation effort, while the cost coefficient of preservation effort and the price elasticity coefficient have a negative effect. In the centralized decision-making model, steady-state product freshness, preservation effort and profit are higher than in the decentralized decision-making model; the cost-sharing contract can significantly improve the overall efficiency of the supply chain, but the retailer's profit is slightly lower than in the decentralized decision-making model.