We consider a supply chain in which a producer supplies a fresh product, through a third-party logistics (3PL) provider, to a distant market where a distributor purchases and sells it to end customers. The product is perishable, both the quantity and quality of which may deteriorate during the...

Keren [The single-period inventory problem: extension to random yield from the perspective of the supply chain. Omega 2009;37:801–10] considers a supply chain in which the distributor faces a known demand and orders from the producer subject to a random production yield, and shows that the...