Abstract: With the development of cold-chain logistics technology, the market demands of fresh products are also growing. This paper introduces the freshness function and studies the decision-making has impact of demand uncertainty on a fresh product supply chain with two-tier suppliers ,in which the downstream supplier observes market demand information and sends an order to the upstream suppliers; while the upstream supplier provides fresh products. This paper finds that the downstream supplier has an optimal order quantity, which can maximize his expected profit. In addition, it is found that the higher the freshness, the greater the optimal order quantity. There is an optimal production time, which will maximize his expected profit. Finally, the correctness and rationality of the conclusions of this paper are verified by numerical examples.

Key words: Freshness, Order Quantity, Newsvendor Model , Fresh Product