Track: Supply Chain Management

Abstract

Worldwide food contamination crises and their consequence on health and monetary losses inflated public concerns, putting food supply chain under pressure to assure quality and safety. When short shelf life food products go through post-harvest process, it becomes difficult to isolate contamination source. Consequently, supplier claims to produce good quality food, meanwhile it reaches to consumer’s contaminations occurs in transit, which results in financial and reputation loss. Hence, food traceability is highly important to combat losses and maintain quality as expected. IoT has potential to improve performance of logistic through traceability. Despite all the advantages, it imposes a mere cost on supply chain players. However, they can consider it as an opportunity to raise consumer fidelity when quality sensitive consumers are ready to bear additional cost. So this system termed as public priced traceability. Further, implementation of proposed traceability arises the question of investment decision that who will bear the implementation cost. To address the question a game theory approach applied in a single supplier - retailer set up. Mathematical model is developed for individual supplier, retailer and centralized investment. Numerical study revealed that in centralized investment model quality improvement level of product and total profit of supply chain is comparatively higher, although selling price and information sensing price is higher than other models.