Digital technology based game-theoretic pricing strategies in a three-tier perishable food supply chain

Article Type

Research Article

Publication Title

Annals of Operations Research

Abstract

The purpose of this study is to examine the pricing strategies of a three-tier supply chain for perishable food products, which includes the manufacturer, distributor, and retailer. The study will examine various pricing scenarios, including single- and two-stage pricing system models that take into account the use of digital technologies. The market demand is based on retail price, freshness of product and Blockchain implementation effort. Our model is formulated under three different strategies-centralized, decentralized and revenue-cost sharing contract considering Big data technology. A Stackelberg game plan is also considered under the decentralized scheme, where the manufacturer is the leader and the retailer and distributor are the followers. The findings demonstrate that a number of variables, including the initial product quality level, the rate of deterioration, the cost optimization coefficient, and the cost of each supply chain member’s per unit of technology adoption affect each party’s profitability. Big data and Blockchain technology lead to enhanced profitability for both individual stakeholders and the overall supply chain. This adoption ensures a mutually beneficial scenario where all parties involved experience gains, resulting in a win-win situation. Further, we have explored the influence of key parameters on our model under various strategic scenarios. The outcomes of this research can be used by the academicians and practitioners to implement the best strategy in a perishable food supply chain with the help of digital technology.

DOI

10.1007/s10479-024-06021-5

Publication Date

1-1-2024

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