Abstract for: The Dynamics of Brand Strategy for Food Safety and Quality in Food Supply Chain
With the economic globalization and the rapid change in food demand pattern, diverse ranges of store brand agri-products are entering into the market with reduced lifecycle which leads to food safety issues. This paper develops a system dynamics framework for the closed-loop of branded food supply chain with small multiple suppliers and a manufacturer. In the simulation study, this paper investigates the influences of various factors including quality elasticity, brand effort, price elasticity, revenue sharing and supplier number on the system key variables. The results show: food quality is determined by all suppliers with prisoner’s dilemma game.There is a information delay between the actual and the perceived quality and presents the goal-seeking structure causing oscillation behavior around the desired and finally approaching. The manufacturer & consumer brand value model is characterized by third-order information delay structures and presents oscillation behavior, which is caused by the three first-order information delays from brand value, quality perception to quality improvement with the increase of consumer desire. Whether suppliers or manufacturer, the shared revenue of the centralized decision-making is higher than that of the decentralized. This not only motivates suppliers to improve raw materials quality, but manufacturer is still the biggest beneficiary.