Managing a sustainable dual-channel supply chain for fresh agricultural products using blockchain technology

Abstract

The use of blockchain technology in the supply chain for fresh agricultural products (FAP) is becoming an issue for decision-makers who want to improve control and performance. Blockchain can give consumers real information about a product, which is good for building trust in a brand. However, its profits and associated costs must be well-adjusted when executing blockchain solutions. This study looks at a two-step FAP supply chain with only one retailer and one producer. The FAP is produced and processed by the manufacturer, who then supplies it to the retailer. The manufacturer simultaneously operates an online/e-tail channel to sell its product. The company gives consumers the right certificates using sustainable organic production and green packaging. End consumers' demand is based on the retail price, the e-tail price, how fresh the product is, how long it takes to check the quality level, and how real the green certificates are. Two models of decentralized decision-making are created to investigate the execution criteria of blockchain technology. A centralized decision-making model with blockchain technology is also being developed to get the best channel performance. We use subgame-perfect equilibrium to resolve channel conflict and for coordination. Then, extended alternative offer bargaining is suggested as a way for the retailer and the manufacturer to decide how to split the extra money. Finally, a numerical example depicted that although blockchain technology benefits the supply chain members, consumers have to pay more to get the service. It is also found that if a firm can form and maintain a trustworthy atmosphere for its FAP then it may continue its business without implementing the blockchain.