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Considering the traceability awareness of consumers: should the supply chain adopt the blockchain technology?

Author

Listed:
  • Zhi-Ping Fan

    (Northeastern University
    Northeastern University)

  • Xue-Yan Wu

    (Northeastern University)

  • Bing-Bing Cao

    (Guangzhou University)

Abstract

Blockchain technology is an emerging technology developed in recent years. It has powerful information traceability function. The blockchain technology plays an important role in monitoring product quality and responding to product safety problems. Under considering the traceability awareness of consumers and the cost of using the blockchain technology, should the supply chain adopt the blockchain technology? The research on this issue deserves great attentions. In this paper, for a three-stage supply chain consisting of a supplier, a manufacturer and a retailer, we study the optimal pricing strategies of the supply chain considering the traceability awareness of consumers in two scenarios. These two scenarios are: scenario N (i.e., the supply chain does not adopt the blockchain technology) and scenario B (i.e., the supply chain adopts the blockchain technology). On this basis, we discuss the conditions that the supply chain adopts the blockchain technology by comparing the optimal profits of the supply chain and its members in two scenarios. Further, we discuss the problem of supply chain coordination when adopting the blockchain technology. The results show that it is conditional for the supply chain to adopt the blockchain technology, and the condition is related to the traceability awareness of consumers, the production costs of the supplier and manufacturer, and the cost of using the blockchain technology. We also find that under a certain condition, the revenue sharing contract can realize a Pareto improvement for the supply chain that adopts the blockchain technology.

Suggested Citation

  • Zhi-Ping Fan & Xue-Yan Wu & Bing-Bing Cao, 2022. "Considering the traceability awareness of consumers: should the supply chain adopt the blockchain technology?," Annals of Operations Research, Springer, vol. 309(2), pages 837-860, February.
    • Handle: RePEc:spr:annopr:v:309:y:2022:i:2:d:10.1007_s10479-020-03729-y
    DOI: 10.1007/s10479-020-03729-y
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    References listed on IDEAS

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    Cited by:

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    5. Patrizia Gazzola & Enrica Pavione & Arianna Barge & Franco Fassio, 2023. "Using the Transparency of Supply Chain Powered by Blockchain to Improve Sustainability Relationships with Stakeholders in the Food Sector: The Case Study of Lavazza," Sustainability, MDPI, vol. 15(10), pages 1-16, May.
    6. Yande Gong & Xinze Jiang & Zhe Wang & Jizhou Zhan, 2024. "Considering Blockchain Technology and Fairness Concerns for Supply Chain Pricing Decisions under Carbon Cap-and-Trade Mechanism," Mathematics, MDPI, vol. 12(16), pages 1-32, August.
    7. Naoum Tsolakis & Roman Schumacher & Manoj Dora & Mukesh Kumar, 2023. "Artificial intelligence and blockchain implementation in supply chains: a pathway to sustainability and data monetisation?," Annals of Operations Research, Springer, vol. 327(1), pages 157-210, August.
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    11. Yuling Sun & Xiaomei Song & Yihao Jiang & Jian Guo, 2023. "Strategy Analysis of Fresh Agricultural Enterprises in a Competitive Circumstance: The Impact of Blockchain and Consumer Traceability Preferences," Mathematics, MDPI, vol. 11(5), pages 1-18, February.
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    13. Zhou, Xiongyong & Zhu, Qinghua & Xu, Zhiduan, 2023. "The role of contractual and relational governance for the success of digital traceability: Evidence from Chinese food producers," International Journal of Production Economics, Elsevier, vol. 255(C).
    14. Di Wang & Daozhi Zhao & Fang Chen, 2023. "Research on Financing Strategy of Green Energy-Efficient Supply Chain Based on Blockchain Technology," Energies, MDPI, vol. 16(7), pages 1-23, March.
    15. Guo, Dongliang & Fan, Zhi-Ping & Sun, Minghe, 2022. "B2C car-sharing services: Sharing mode selection and value-added service investment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
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