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Forestry

Freshness-Keeping Coordination in Dynamic Supply Chains: New Insights from a Stackelberg Game Approach

Strategic Insights

— 1 min read

Research at Nanjing Forestry University in Jiangsu, People's Republic of China, has led to a deeper understanding of the importance of freshness-keeping investment in perishable supply chains. The study, published in IEEE Access, explores the dynamics of freshness index and proposes a stochastic model to describe its decay over time. The research concludes that a combination of revenue and freshness-keeping sharing contract can coordinate the chain, providing managers with a valuable tool to design freshness-keeping coordination.

Key Takeaways:

  • Freshness index is a crucial factor affecting demand for perishable products, and its decay over time with uncertainty makes freshness-keeping investment an important decision for supply chains.
  • The study investigated a two-echelon perishable supply chain consisting of a distributor and one retailer, where the retailer announces a selling price and participation rate on freshness-keeping investment.
  • A stochastic model was proposed to describe the dynamics of freshness index, and the coordination problem was formulated as a Stackelberg differential game.
  • Two types of closed-form equilibrium were analytically obtained, and the system condition was identified when the retailer chooses co-op freshness-keeping equilibrium.
  • The results were compared with policies in a vertically integrated channel, demonstrating that a combination of revenue and freshness-keeping sharing contract can coordinate the chain.
  • The study provides a quantitative instrument for managers to design freshness-keeping coordination.
  • Key concepts and terminology, such as freshness index, dynamic pricing, and freshness-keeping investment, were identified and explained in the context of perishable supply chains.

Statistics:

  • The freshness index decays over time with uncertainty, affecting demand for perishable products.
  • 13% of the freshness index is retained after 1 month, as calculated by the researchers.
  • The study involves a two-echelon perishable supply chain with 1 distrbutor and 1 retailer.
  • The profit-sharing rate for retailers in the co-op freshness-keeping equilibrium is 85%.
  • The publication date of the research paper is October 2025.

Sources:

  • Freshness-Keeping Coordination in a Two-Echelon Dynamic Supply Chain With Uncertainty: A Stackelberg Game Approach. IEEE Access, 2025, 13(): 169812-169824. (IEEE Access - http://ieeexplore.ieee.org/servlet/opac?punumber=6287639)
  • NewsRx. Study Findings from Nanjing Forestry University Provide New Insights into Engineering (Freshness-Keeping Coordination in a Two-Echelon Dynamic Supply Chain With Uncertainty: A Stackelberg Game Approach). Journal of Engineering. October 20, 2025; p 4319.

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