Abstract
With the intensification of global warming and the levy of energy tax, more industries are paying attention to energy saving and reduction of carbon footprint. For the food industry, energy cost in the supply chain of perishable food is quite high because of cold-chain transport and storage. Therefore, the efficacies of cold chain management and inventory control are the key factors that increase the efficiency of food supply chain and make it more ecological. This research analyzes the degradation process of perishable food and determines the optimal temperature of the cold chain as well as the optimal price to maximize the channel profit. We prove that there is an optimal price with a certain temperature and develop an efficient search algorithm to find the optimal temperature. We also perform sensitivity analyses to test which parameters affect the channel profit significantly. Numerical experiments are conducted to illustrate the proposed models.
Highlights
Perishable food’s short lifetime, spoilage, and demand uncertainty cause the difficulty of managing perishable food supply chains [1,2]
It is of importance to design green supply chains with a marketing strategy to reduce energy costs and increase the total profit
When the customers are sensitive to price increase, the retailers should cut down the food price to stimulate the market and reduce the loss caused by food deterioration by lowering the storage temperature
Summary
Perishable food’s short lifetime, spoilage, and demand uncertainty cause the difficulty of managing perishable food supply chains [1,2]. It is of importance to design green supply chains with a marketing strategy to reduce energy costs and increase the total profit. It is necessary to apply marketing strategies (such as pricing discounts and temperature control) and design a green supply chain for perishable food to reduce the total cost and energy consumption. On the basis of the quality control of perishable food, this paper comprehensively studies the cost and energy consumption of perishable food in the process of production, transportation, and sales, and develops integrated marketing strategies with respect to the pricing, temperature, and quality control. Hong et al [20] analyzed the role of radio frequency identification (RFID) technology in food supply chain by taking a convenience store in Taiwan as an example They pointed out that RFID technology can reduce both management cost and energy consumption. Sustainability 2017, 9, 1511 of food processing and food transportation, and sales and inventory management in the retail stage, aiming to achieve the purpose of improving the total profits of the perishable food supply chain
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