The Dynamic Decision-Making Problem of Secondary 
Supply Chain for Perishable Goods under the Bellman 
Equation

Xinying Wang; Xiao Zhang

doi:10.70711/frim.v2i9.5263

The Dynamic Decision-Making Problem of Secondary Supply Chain for Perishable Goods under the Bellman Equation

Xinying Wang, Xiao Zhang

Abstract

Markov dynamic programming is used to analyze the effect of quality loss on the profit of the cold chain when the retailers demand
is affected by random factors and the product can be put into appearance fresh-keeping. After solving the problem of retailers profit maximization in the unlimited sales period, it is found that when the initial stock of the current period fluctuates under the influence of random
demand factors, the model can control the system profit fluctuation within the expected range by adjusting the relevant strategies. The optimal
strategies of replenishment, pricing and fresh-keeping investment are closely related to the initial stock.

Keywords

Cold chain of fruits and vegetables; Random demand; Fresh keeping input; Quality loss

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References

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DOI: http://dx.doi.org/10.70711/frim.v2i9.5263

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