Information Sharing in Food Supply Chain Systems: Towards Increasing Efficiency and Sustainability Under Uncertainty

Abstract

Inefficiencies in the food supply chain system negatively affect consumer pricing, the carbon footprint, food waste, and expected freshness. In the absence of consistent and well-designed certification processing, inefficiencies between producers and suppliers are estimated to be $60 billion annually. We present a multi-tier supply chain food system consisting of suppliers and retailers that provide perishable goods to consumers, and provide a framework to assess the efficiency, resiliency and sustainability of such a system. Inventory is used to optimize the flow of goods through the supply chain, and the effect of inventory-information sharing between suppliers and retailers is considered, which effectively corresponds to blockchain adoption. We present early results from a data-driven model that is able to incorporate a) state-dependent price schedule, b) state-dependent demand function, and c) uncertainty in production capacity and delivery times.