Research Article
A Bilevel Stochastic Dynamic Programming Model to Assess the Value of Information on Actual Food Quality at Wholesale Markets
Table 1
Parameter settings.
| | Category | Notation | Description | Value |
| | Global settings | | The influence coefficient of quality | 0.5 | | Deterioration probability for every unit at every quality level | (50%, 50%) | | A | The consumer’s demand potential, a scale parameter used to determine the mean of the Poisson distribution (ton) | 5 | | Mean of the market price (yuan per ton) | 5000 | | The probability of price keeping the same | 85% | | The number of steps that cover the price’s range | 6 | | Price’s step size (yuan per ton) | 500 |
| | Cost parameters | | Wholesaler’s purchasing cost (yuan per ton) | 3000 | | RP | The retailer’s selling price (yuan per ton) | 10000 | | The wholesaler’s salvage value (yuan per ton) | 1500 | | The retailer’s salvage value (yuan per ton) | 500 | | Penalty cost for the wholesaler (yuan per ton) | 500 | | Ordering cost (yuan) | 10000 | | Holding cost per unit per day (yuan per ton per day) | 10 |
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