An optimal decision for the fresh food supply chain network under omnichannel context

Abstract

ABSTRACT Despite the significant attention to the customer experience which is a critical factor to help firms gain a competitive edge, there has been limited research regarding how to offer a superior customer experience in an omnichannel retailing environment through designing a fresh food supply chain network (FSCN). This paper develops a customised bi-level programming model for a capital constraint FSCN to reflect the interdependent relationship between two independent parties - the Omnichannel retailing company and customers with heterogeneous consumption requirements under time-varying overall demand uncertainty. A two-stage algorithm is applied to solve the optimisation problem, and a case study concerned with the establishment of FSCN is used to illustrate the applicability and efficiency of the proposed model and approach. The results obtained indicate the economic benefits of having a model that combines with a customer segmentation strategy. Both the operational efficiency of FSCN and the satisfaction level of customer experience are effectively improved.