With China’s massive production of fresh agricultural products, optimizing the supply chain has become increasingly important. However, complex structures, high consumer freshness requirements and perishability lead to inefficiency. Previous studies on perishability focused on individual supply chains. Recent work considers competition but overlooks power structures. This article comprehensively analyzes the impacts of competition, power structures and perishability on supply chain decisions using game theory models, identifying factors affecting optimal supply chain investment.
Supplier competition is overlooked yet critical for supply chain decisions
Many studies explore competitive relationships between manufacturers, suppliers and retailers. However, most supply chain decision models do not account for supplier competition. As competition affects pricing, investment and return decisions, overlooking it biases results.
Power structures play an underexplored role in supply chain optimization
Some research analyzes supply chains under different power structures. But they focus on general products. Power structures likely impact fresh food supply chains differently due to perishability. More analysis is needed on power structures in fresh food supply chains.
A model integrating competition and power structures provides new insights
This paper develops a two-stage game model analyzing a supply chain under different power structures and supplier competition. The model incorporates fresh food characteristics. Results demonstrate the importance of integrating power structures and competition in supply chain models.
The impacts of competition and power structures are interdependent
The effects of power structures on optimal supply chain decisions depend on the presence and extent of competition. Likewise, the impacts of competition depend on the power structure. An integrated model is needed to fully understand drivers of supply chain optimization.
More research needed on additional factors affecting fresh food supply chains
While illuminating, this model simplifies some aspects of fresh food supply chains. Further work should explore impacts of consumer behavior, logistics, regulations, and technology on optimal decision making.
This paper provides valuable insights by analyzing investment decisions in fresh food supply chains under supplier competition and different power structures. An integrated model reveals the interdependencies between these factors. More work is needed incorporating additional complexities.