Sustainability in fresh agricultural product supply chain based on radio frequency identification under an emergency
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Sustainability in fresh agricultural product supply chain based on radio frequency identification under an emergency Bo Yan1 · Xiaoxu Chen1 · Qin Yuan1 · Xiaotai Zhou1
© Springer-Verlag GmbH Germany, part of Springer Nature 2019
Abstract A two-level RFID-based fresh agricultural product (FAP) supply chain consisting of one manufacturer and one retailer under an emergency is taken into consideration. Firstly, the coordination of FAP supply chain after the application of RFID is studied. Secondly, emergency events will lead to a demand disruption, seriously affecting the profits of supply chain participants, which is not conducive to the sustainable development of the supply chain. As a response to this situation, this study improves the original revenue-sharing contract to coordinate the RFID-based FAP supply chain after the demand disruption. Finally, the impact of RFID application and supply chain coordination on the triple bottom line of sustainable development including corporate profits, social responsibility, and environmental responsibility is analyzed. Keywords RFID-based supply chain · Fresh agricultural product · Emergent event · Revenue-sharing contract · Sustainable development
1 Introduction Since the UN General Assembly put forward 17 sustainable development goals in 2015, many scholars believe that fresh agriculture product (FAP) is the main challenge to achieve sustainable development (Godfray and Garnett 2014; Kuyper * Bo Yan [email protected] Xiaoxu Chen [email protected] Qin Yuan [email protected] Xiaotai Zhou [email protected] 1
School of Economics and Commerce, South China University of Technology, Guangzhou, China
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and Struik 2014; Dania et al. 2016). Food safety, waste reduction and economic performance are important propositions for the sustainable development of FAP. From the perspective of food safety and waste reduction, the loss of FAP is serious, especially during transportation (Yu and Nagurney 2013). Every year, an estimated 1.3 billion tons of agricultural products rot in the supply chain. Many scholars consider how to reduce the loss of FAP supply chain. According to Yan et al. (2015), the radio frequency identification (RFID) technology can reduce the loss of FAPs in the production and logistics process, and improve the profit of the entire FAP supply chain. In addition, RFID technology ensures that consumers at the end can obtain information about agricultural products through tags, thus ensuring food safety (Piramuthu et al. 2013). Therefore, we introduce RFID technology into the two-level FAP supply chain. However, the introduction of RFID technology increases the cost of supply chain. So, it is necessary to coordinate the supply chain in order to ensure the profit of each member of the supply chain and promote the application of RFID technology in FAP supply chain. Economically, the profit of FAP supply chain members is still a key factor for sustainable development. Because the profit margin of FAP is often very low and the compet
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