The concentration in large retail firms is having a major impact on supply chain organization, and their buying power and supply contracts have led to a profound change in the fresh fruit and vegetable industry. Closer vertical co-ordination has occurred as the use of spot markets has declined. This paper proposes a model of a three-level supply chain consisting of producers, a wholesaler, and a retailer under the influence of two kinds of uncertainties with respect to product quality and retail demand. We use this model to consider the effects of vertical co-ordinationon output, prices, and the welfare of the various participants.
|Number of pages||18|
|Journal||International Review of Retail, Distribution and Consumer Research|
|Publication status||Published - Sep 2007|
All Science Journal Classification (ASJC) codes
- Business and International Management
- Economics and Econometrics