Pricing of fresh agricultural product supply chain under transportation interruption

Shanghai Maritime University Institute of logistics science and engineering, Pudong New Area, Shanghai, China

^* Corresponding author: 202130510223 @stu.shmtu.edu.cn

Abstract

With the trend of global economic integration and the improvement of logistics, transportation, and storage technology, regional restrictions on the sales of fresh agricultural products have gradually decreased. At the same time, due to traffic accidents, natural disasters, and other factors, the possibility of interruption in the transportation supply chain of fresh agricultural products has been increased. This article examines a three-level fresh supply chain with the possibility of transportation interruption. The Stackelberg method is used to solve the equilibrium solution, and the results under centralized and decentralized models are analyzed. We found that the increase in the probability and duration of transportation interruptions actually leads to less investment by distributors in cold chain services, resulting in increased profits for retailers and decreased profits for distributors and manufacturers.