scholarly journals Pricing and Safety Investment Decisions in Food Supply Chains with Government Subsidy

2021 ◽  
Vol 2021 ◽  
pp. 1-18
Author(s):  
Yanan Yu ◽  
Yong He ◽  
Melissza Salling

As the demand for safe food has been rapidly increasing these years, more and more stakeholders are dedicated to the safety of the food in the supply chain of this sector. To expand the market share of safe food, governments of some countries also provide subsidies to encourage food processors to invest in better food safety efforts. This paper establishes a three-stage game model between the government and a two-stage food supply chain that consists of one supplier and one processor, where the government subsidizes processors to invest in food safety efforts; furthermore, this paper determines the optimal wholesale price, marginal profit, food safety investment, and government subsidies. This paper analyzes the effects of the government subsidies and risk aversion of the food processor and introduces the mode of order quantity-based payment and demand-based payment; moreover, it also analyzes the impacts of subsidies and different payment methods on demands. The results show that suppliers can increase the market share of products by adopting the demand-based payment, but this method does not always benefit the members of the supply chain. As the processor is more risk-averse, the optimal subsidy is higher, encouraging the processor to invest in more efforts. Finally, the supplier’s profit increases with the processor’s risk aversion indicator.

2020 ◽  
Vol 12 (6) ◽  
pp. 2281 ◽  
Author(s):  
Chang Su ◽  
Xiaojing Liu ◽  
Wenyi Du

This study examined how to arrange the generation and pricing of supply chain members in the case of consumer green preference with different government subsidies. The green supply chain comprises a manufacturer and a retailer; the government subsidizes manufacturers who produce green products and consumers who buy green products. The study built a green supply chain pricing decision model with different forms of subsidy under various power structures. By backward induction and sensitivity analysis, this study analyzed optimal strategies of green supply chain under various modes, and we discuss how the government subsidy coefficient affects the optimal decision of a green supply chain. The results show that, firstly, whether the government subsidizes the manufacturers or the consumers, the wholesale price offered by the manufacturer is directly proportional to the subsidy coefficient under the two power structures. Secondly, when the government subsidizes the manufacturer, the carbon-emission level and the retail price are inversely proportional to the subsidy coefficient under the manufacturer leader; the carbon-emission level and the retail price are all directly proportional to the subsidy coefficient under the retailer leader. Finally, when the government subsidizes the consumers, the carbon-emission level and the retail price are directly proportional to the subsidy coefficient under the two power structures.


2020 ◽  
Vol 2020 ◽  
pp. 1-12
Author(s):  
Qingfeng Meng ◽  
Mengwan Li ◽  
Zhen Li ◽  
Jing Zhu

This paper fully considers the complexity characteristics of the consumer group, such as the heterogeneity of consumer environmental preferences and consumption levels and constructs a two-stage price decision model of green supply chain composed of the manufacturer and retailers. Under the four different scenarios, no government subsidies, government subsidies are given to the manufacturer, government subsidies are given to the green product retailer, and government subsidies are given to green product consumers, the impact of government subsidies on green supply chain member price decisions is analyzed, and the validity of the model is verified by an example. The results show that compared with the no government subsidies, government subsidies to the manufacturer will reduce the wholesale and sales prices of green products, and subsidies to the green product retailer will lead to higher wholesale prices and lower sales prices of green products, and subsidies to green product consumers will increase the wholesale and sales prices of green products. No matter which object is subsidized by the government, the wholesale price of general products will not change and the sales price will decrease. Government subsidies will facilitate the sales of green products, thereby expanding the market share of green products.


Electronics ◽  
2021 ◽  
Vol 10 (11) ◽  
pp. 1223
Author(s):  
Ilianna Kollia ◽  
Jack Stevenson ◽  
Stefanos Kollias

This paper provides a review of an emerging field in the food processing sector, referring to efficient and safe food supply chains, ’from farm to fork’, as enabled by Artificial Intelligence (AI). The field is of great significance from economic, food safety and public health points of views. The paper focuses on effective food production, food maintenance energy management and food retail packaging labeling control, using recent advances in machine learning. Appropriate deep neural architectures are adopted and used for this purpose, including Fully Convolutional Networks, Long Short-Term Memories and Recurrent Neural Networks, Auto-Encoders and Attention mechanisms, Latent Variable extraction and clustering, as well as Domain Adaptation. Three experimental studies are presented, illustrating the ability of these AI methodologies to produce state-of-the-art performance in the whole food supply chain. In particular, these concern: (i) predicting plant growth and tomato yield in greenhouses, thus matching food production to market needs and reducing food waste or food unavailability; (ii) optimizing energy consumption across large networks of food retail refrigeration systems, through optimal selection of systems that can be shut-down and through prediction of the respective food de-freezing times, during peaks of power demand load; (iii) optical recognition and verification of food consumption expiry date in automatic inspection of retail packaged food, thus ensuring safety of food and people’s health.


2021 ◽  
Vol 13 (3) ◽  
pp. 1115
Author(s):  
Shufan Zhu ◽  
Kefan Xie ◽  
Ping Gui

Incorporating the impact of the COVID-19 pandemic on the mask supply chain into our framework and taking mask output as a state variable, our study introduces the differential game to study the long-term dynamic cooperation of a two-echelon supply chain composed of the supplier and the manufacturer under government subsidies. The study elaborates that government subsidies can provide more effective incentives for supply chain members to cooperate in the production of masks compared with the situation of no government subsidies. A relatively low wholesale price can effectively increase the profits of supply chain members and the supply chain system. The joint contract of two-way cost-sharing contract and transfer payment contract can promote production technology investment efforts of the supply chain members, the optimum trajectory of mask production, and total profit to reach the best state as the centralized decision scenario within a certain range. Meanwhile, it is determined that the profits of supply chain members in the joint contract can be Pareto improvement compared with decentralized decision scenario. With the increase of production technology investment cost coefficients and output self-decay rate, mask outputs have shown a downward trend in the joint contract decision model. On the contrary, mask outputs would rise with growing sensitivity of mask output to production technology investment effort and increasing sensitivity of mask demand to mask output.


2010 ◽  
Vol 20-23 ◽  
pp. 1040-1045 ◽  
Author(s):  
Cheng Hua Shi ◽  
Zi Lai Sun ◽  
Kun Jing Dong

Food is the most basic material conditions of survival and development of human society, its security situation is relation to the health and safety of consumer directly. This paper analyze the reasons of causing problems of food quality and safety in the agricultural products supply chain from the perspective of the game theory as well as the government incentive and regulatory mechanisms affect the decision-making of farmers and food producers respectively. In the game between crop growers - farmers and food producers, the government play the outsider role and should give farmers subsidies to encourage them to grow high-quality green crops, as far as possible to ensure food safety from the source. In the game between producers and regulators, the government, as the game participant, should be asked to improve the supervision efficiency and the control ability to prevent unqualified food products entering the market.


2014 ◽  
Vol 697 ◽  
pp. 482-487
Author(s):  
Shi Ying Jiang ◽  
Chun Yan Ma

Background on two stages green supply chain consisting of a manufacturer and a retailer, considering the degree of risk aversion and product greenness, consumer preferences and other factors, the centralized decision-making game model and manufacturer-leading Stackelberg game model are established.Then two game models are compared. The interaction of product greenness, wholesale price, product price,and risk aversion utility for manufacturers and retailers are also disscussed. Finally, the revenue sharing contract is applied to coordinate the green supply chain . The results show that:(1) In the centralized decision-making model, there is a critical value of the product green degree; (2)In manufacturer-leading Stackelberg game model, the higher the green degree of the product, the higher the manufacturer's wholesale price,and the wholesale price increases as risk aversion degree of manufacturers improves;(3)The revenue sharing contract can coordinate this type of green supply chain under manufacturers risk-averse.


2021 ◽  
Vol 5 ◽  
Author(s):  
Md Saad Nurul Eiman ◽  
Firdaus Muhammad Nurul Azmi Aida ◽  
Trias Mahmudiono ◽  
Siva Raseetha

The novel coronavirus disease 2019, or COVID-19, is a recent disease that has struck the entire world. This review is conducted to study the impacts of the COVID-19 pandemic to food safety as well as the food supply chain. The pandemic has caused various changes around the world as numerous countries and governments have implemented lockdowns and restrictions to help curb the rising cases due to COVID-19. However, these restrictions have impacted many aspects of everyday life, including the economic sectors such as the food industry. An overview of the current COVID-19 situation in Malaysia was discussed in this review along with its implication on food safety and food supply chain. This is followed by a discussion on the definition of food safety, the impact of the pandemic to food safety, as well as the steps to be taken to ensure food safety. Hygiene of food handlers, complete vaccination requirement, kitchen sanitation and strict standard operating procedures (SOPs) should be in place to ensure the safety of food products, either in food industries or small scale business. Additionally, the aspect of the food supply chain was also discussed, including the definition of the food supply chain and the impact of COVID-19 to the food supply chain. Travel restriction and lack of manpower had impacted the usual operation and production activities. Lack of customers and financial difficulties to sustain business operational costs had even resulted in business closure. As a conclusion, this article provides insight into crucial factors that need to be considered to effectively contain COVID-19 cases and highlights the precaution methods to be taken through continuous monitoring and implementation by Malaysian government.


2021 ◽  
Vol 6 (2) ◽  
pp. 31
Author(s):  
Amit Agrawal ◽  
Murli Manju ◽  
Amrita Ghosh ◽  
Ranabir Pal ◽  
GabrielAlexander Quiñones-Ossa ◽  
...  

2021 ◽  
Author(s):  
Beth Armstrong ◽  
Lucy King ◽  
Robin Clifford ◽  
Mark Jitlal

Food and You 2 is a biannual survey which measures self-reported consumer knowledge, attitudes and behaviours related to food safety and other food issues amongst adults in England, Wales, and Northern Ireland. The survey is primarily carried out online using a methodology known as ‘push-to-web’. Fieldwork was conducted between 20 November 2020 and 21 January 2021. A total of 5,900 adults from 3,955 households across England, Wales and Northern Ireland completed the survey. Topics covered in the Food and You 2: Wave 2 Key Findings report include: Trust in FSA and the food supply chain Concerns about food Food security Eating out and takeaways Food allergy, intolerance, and other hypersensitivities Food safety in the home


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