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Pricing decisions of dual-channel fresh product supply chain considering fresh-keeping investment under cap-and-trade regulation

Published: 15 October 2024 Publication History

Abstract

The expectations for product freshness are rising in tandem with the rise of living standards. By investing fresh-keeping technologies, the supplier can effectively attract customers. Based on cap-and-trade regulations, this paper explores a dual-channel fresh product supply chain (FPSC) considering fresh-keeping and carbon emission reduction (CER) technologies investments. The supplier sells product through two channels (traditional retail and direct online). This paper introduces freshness and the degree of carbon emission reduction (CER) into the market demand, analyzes the optimal pricing decisions of supply chain parties in four different cases, and discusses how several important factors affect the optimal pricing decisions. Through numerical cases and sensitivity analysis, our findings indicate that more investment in fresh-keeping technology can effectively enhance enterprise benefits. Additionally, we note that the retail price set by the retailer, the wholesale price and online direct selling price set by the supplier are all linear functions with the CER level.

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      IMMS '24: Proceedings of the 2024 7th International Conference on Information Management and Management Science
      August 2024
      465 pages
      ISBN:9798400716997
      DOI:10.1145/3695652
      Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than the author(s) must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected].

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      Publication History

      Published: 15 October 2024

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      Author Tags

      1. Key words: Stackelberg game
      2. carbon cap-and-trade regulation
      3. fresh-keeping technology
      4. pricing decision

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