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Fighting imperfect produce: Grocery retailing strategies and the battle against food waste
Haoran Yu, Burak Kazaz, Fasheng Xu
Syracuse University, United States of America
We examine grocery retailer's selling strategies of cosmetically imperfect produce. We consider three strategies: (1) Discarding of the imperfect produce; (2) Differentiating perfect and imperfect produce and selling at different prices; (3) Bunching strategy where perfect and imperfect produce are sold together. We identify when each strategy is optimal under quality uncertainty and varying degrees of consumer valuations and price sensitivity.
Channel choice under esthetic specifications and producer information in agricultural supply chains
Nina Mayer1, Sandra Transchel1, Mirjam Meijer2
1Kuehne Logistics University, Germany; 2Technical University Eindhoven
Growing consumer demand for sustainable food and transparent supply chains, makes direct-to-consumer sales an attractive alternative for farmers, next to the retail market. We study how a dual-channel structure can improve an agricultural food supply chain’s profitability and sustainable transformation, considering the effect of random crop-yield, customer appreciation of additional producer information, and esthetical requirements of retailers.