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Sustainable development of the fresh agricultural products supply chain through the application of RFID technology

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Abstract

This study discusses the sustainable development of a fresh agricultural product (FAP) supply chain, which consists of one manufacturer and one retailer, from the perspective of supply chain coordination. The study includes a centralized FAP supply chain, a decentralized FAP supply chain, and a decentralized FAP supply chain under a “revenue-sharing” contract. The study also establishes the profit models of the three FAP supply chains before and after investment in the radio-frequency identification (RFID) technique. Afterwards, the models are compared and the critical values of the cost of the RFID tags are calculated. Finally, the sustainable development of the FAP supply chain is obtained. The revenue-sharing contract facilitates the coordination of the FAP supply chain. In addition, RFID technology application can reduce the loss rate of FAP transportation as well as increase the production cost of FAP and the utilization rate of RFID tag recycling. Furthermore, the RFID technology application itself can be simplified in the future. The more significant these three changes are, the greater the willingness of companies in the FAP supply chain to invest in RFID.

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Acknowledgments

The authors thank the anonymous referees and guest editors for their valuable and helpful suggestions for the improvement of this paper. This work was supported by the Humanities and Social Sciences Research Planning Fund Project of the Ministry of Education (11YJA630173), the Agriculture Science Technology Achievement Transformation Fund (2013GB2E000353), the Guangdong Province Soft Science Research Project (2013B070206013), the Major Program (71090403/71090400), the Major International (Regional) Joint Research Project (71420107024), and the General Program (71172075) of the National Natural Science Foundation of China.

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Authors and Affiliations

  1. School of Economics and Commerce, South China University of Technology, Guangzhou Higher Education Mega Centre, Panyu District, Guangzhou, 51006, China

    Bo Yan, Song Shi, Bing Ye, Xiaotai Zhou & Ping Shi

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  1. Bo Yan
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  2. Song Shi
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  3. Bing Ye
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  4. Xiaotai Zhou
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  5. Ping Shi
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Correspondence to Bo Yan.

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Yan, B., Shi, S., Ye, B. et al. Sustainable development of the fresh agricultural products supply chain through the application of RFID technology. Inf Technol Manag 16, 67–78 (2015). https://doi.org/10.1007/s10799-014-0196-y

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  • DOI: https://doi.org/10.1007/s10799-014-0196-y

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