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Quality control in food supply chain management: An analytical model and case study of the adulterated milk incident in China

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  • Chen, Chialin
  • Zhang, Jun
  • Delaurentis, Teresa
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    Abstract

    Managing the food supply chain quality and risk has received significant attention in recent years especially in global emerging markets such as India and China. In this paper, we present a mutually supporting analytical model and exploratory case to study the managerial and policy issues related to quality control in food supply chain management with a focus on the Chinese dairy industry. Based on a general supply-chain model with acceptance sampling tests under uncertain product quality, we show that, depending on the sampling technology, the decentralized supply-chain structure may lead to a distortion in product quality. We also explore the effects of different pricing and regulatory options of vertical control on product quality and the distribution of the total supply-chain profit. In addition, we use an exploratory case study of the 2008 adulterated milk incident in China to investigate practical issues in ensuring product quality/safety in food supply chain management. Our analytical results and two comparative cases show that, instead of the common “poor quality” misperception of food products from global emerging markets, it is actually the poor vertical control strategy for managing the food supply chain quality and risk that caused the adulterated milk incident. A number of other important managerial and policy insights and implications regarding supply chain design, informational visibility, corporate social responsibility, and regulatory action in managing the global food supply chain quality and risk are also discussed.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 152 (2014)
    Issue (Month): C ()
    Pages: 188-199

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    Handle: RePEc:eee:proeco:v:152:y:2014:i:c:p:188-199

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    Web page: http://www.elsevier.com/locate/ijpe

    Related research

    Keywords: Food supply chain; Quality control; Supply chain design; Corporate social responsibility; Case studies;

    References

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    1. Ma, Peng & Wang, Haiyan & Shang, Jennifer, 2013. "Supply chain channel strategies with quality and marketing effort-dependent demand," International Journal of Production Economics, Elsevier, vol. 144(2), pages 572-581.
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    7. Gale, H. Frederick, Jr. & Hu, Dinghuan, 2009. "Supply Chain Issues in China’s Milk Adulteration Incident," 2009 Conference, August 16-22, 2009, Beijing, China 51613, International Association of Agricultural Economists.
    8. Chialin Chen, 2001. "Design for the Environment: A Quality-Based Model for Green Product Development," Management Science, INFORMS, vol. 47(2), pages 250-263, February.
    9. Xie, Gang & Wang, Shouyang & Lai, K.K., 2011. "Quality improvement in competing supply chains," International Journal of Production Economics, Elsevier, vol. 134(1), pages 262-270, November.
    10. Charles J. Corbett & Deming Zhou & Christopher S. Tang, 2004. "Designing Supply Contracts: Contract Type and Information Asymmetry," Management Science, INFORMS, vol. 50(4), pages 550-559, April.
    11. Dina Umali-Deininger & Mona Sur, 2007. "Food safety in a globalizing world: opportunities and challenges for India," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 135-147, December.
    12. Liu, Wei-hua & Xie, Dong & Xu, Xue-cai, 2013. "Quality supervision and coordination of logistic service supply chain under multi-period conditions," International Journal of Production Economics, Elsevier, vol. 142(2), pages 353-361.
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