A Study On Information Sharing Incentive Mechanism In Food Supply Chain

As the foundation of people’s livelihood, the position of food is of greatimportance. The consecutive increase in food production from2004to2012leads toever-increasing attention instead of eliminating people’s concern on food security. Inrecent years, frequent disruptions and strike of multinational food company have anenormous question on the food supply chain operational capacity. Our traditional foodsupply chain ability is low, disadvantage in market competition and each nodeenterprise does not cooperate with each other very well, especially in the informationsharing, which results in disperse operation and poor efficiency for whole supplychain. There are many barriers for information sharing even though it can bring muchbenefit for supply chain members enterprises. Therefore how to build and improveinformation sharing incentive mechanism becomes top priority to help enterprises toovercome the resistance of sharing information and obtain the value of informationsharing. Thus it also becomes a focal point of this paper.Based on general research results of supply chain information sharing, this papermakes a detailed analysis of the characteristics of the food supply chain, In theinformation-sharing model,this paper takes perishable food biochemical propertiesinto account and in the food supply chain information sharing incentive model,thispaper takes government intervention on food price into account, in order to providesome reference for further research on the food supply chain information sharingincentive.On the basis of literature review, this paper firstly defines the concept offood supply chain and the types of information which food supply chain can share,namely inventory information, order information, product information, productioninformation and logistics information. And then this paper discusses the influence ofinformation sharing on food supply chain node enterprise by analyzing the effect ofinformation sharing both on distribution of food processing factory orders and profitdistribution.and consider that information sharing can reduce inventory, optimize theallocation of orders and improve corporate profits. Finally this paper establishes a twolevel supply chain that consists of food processing factories and food retailers, anddiscusses the validity incentive conditions and corresponding measures of informationsharing incentive by comparative analysis of both the game model and principal agentmodel. Studies suggest that two ways can be used to drive food supply chainenterprises to share information: on the one hand, the food supply chain upstream anddownstream enterprises can make use of economic means such as preferential priceand order, profits distribution to promote enterprises with information superiority toactively share information; on the other hand, government should give corresponding reward to those food supply chain enterprises which actively share information.