Supply chain coordination of fresh Agri-products based on value loss

Agricultural products are easy to deteriorate in long-distance transportation. Excessive circulation loss not only increases the cost of fresh agri-product supply chain, but also damages the safety and quantity of fresh agri-products. The value loss of fresh agri-products under different transportation modes was studied. This paper analyzes the conditions for the supplier to choose normal temperature transportation and cold chain transportation, and the influence of different transportation modes on the retailer’s decision. The value loss of fresh agri-products under different transportation modes was studied. The conditions of choosing normal temperature transportation or cold chain transportation and the influence of different transportation modes on the retailer’s decision are analyzed. It is found that when the supplier chooses cold chain transportation, the retailer and the whole supply chain can get more profits. The retailer is encouraged to make appropriate supply chain contracts with the supplier, such as the improved revenue-sharing contract or the cost-sharing contract, and the supplier is encouraged to adopt cold chain transportation mode to improve the utilization rate of cold chain transportation of fresh agri-products. Consumers’ sensitivity to freshness has a great impact on the strategies of supply chain members. The contribution of this work also includes reducing the circulation loss of agri-products and providing guidance for the operation and management of agri-products enterprises.