Research on the supply chain coordination strategy of fermented foods considering quality and efficiency improvement effort

The changing quality of fermented foods is affected by microorganisms, which has a direct impact on consumer utility and the decision-making processes of related enterprises. This paper explores the intricate decision-making processes within the fermented foods supply chain that arise from the quality variations during fermentation processing. We propose a two-phase profit model in a fermented foods supply chain incorporating dynamic changes in both price and quality. By using the Stackelberg game paradigm, the optimal quality, efficiency improvement initiatives, and pricing strategies are obtained with centralised and decentralised decision-making methods. Furthermore, we design a new contract mechanism to combine quantity discount, wholesale price adjustment, and quality and efficiency cost sharing. The results demonstrate that the agreement improves consumer utility and successfully aligns the supply chain for fermented foods. Finally, numerical experiment is provided to demonstrate the usefulness of this coordination technique, and important insights about how to optimise decision-making in supply chains for fermented foods are also provided. [Received: 14 September 2024; Accepted: 3 May 2025]