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Motivated by the recent trend of increasing transparency and traceability in the food and pharmaceutical industries, we investigate the impacts of traceability on a supply chain in which a buyer (e.g., a procurement agent or retailer) sources a product from multiple competing suppliers. When a...
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We consider a supply chain where the quality level can be observed by the buyer(s) onlyafter the purchase is completed (experience good). If the delivered quality is below the levels agreed in the contract, the buyer(s) may take action to seek remedy, but this effort is costly. Obviously, this...
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Global sourcing has made quality management a more challenging task, and supplier certification has emerged as a … certification standards on the supplier's investment in quality when a buyer outsources the production process. Based on our results …, deterministic certification may lead to under-investment in quality improvement technology for efficient suppliers, thereby leading …
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