Food Cold Chain Equilibrium Based on Collaborative Replenishment

Abstract

This article analyzes the food cold chain (FCC) equilibrium based on collaborative replenishment policy. The entiretyof collaborative replenishment (ECR) includes one supplier, one retailer and one consumer. The two players join inthe non-cooperative game. Both of them pursue their own ideal benefits and achieve the equilibrium in terms of foodquantity and price. A new iterative algorithm based on the theory of fixed point is designed to improve the equilibriummodel. A numeric example was set to identify the applicability of the model. The parameter sensitivity analysis showsthat the overall profit of ECR will increase with consumers’ demand, while the customer satisfaction will decrease tosome extent when the food deterioration rate and shortage cost increase, the overall profit of ECR will decrease. Wefind that the former leads to decreasing of the customer satisfactory and the latter do the opposite. Appropriatestrategies should be chosen based on the actual situation for each equilibrium subject.