National University of Singapore

Department of Industrial Systems Engineering & Management

B.Eng(ISE) Independent Study Module (2021/2022 Semester I)

A BOCR-based AHP-ANP Approach to Sustainable Blockchain-enabled Agri-Food Supply Chain

Yu Minghui

Abstract

Disruptive technologies have been applied to alleviate the problems of Agri-food supply chains (AFSCs) such as insufficient food safety guarantee, low trust among stakeholders, lack of collaboration, and unsatisfactory effectiveness of supply chain operations. Blockchain technologies (BCTs) are changing the way AFSCs function, from traceability systems which tracks product provenance ensuring food quality and safety, to collaborative information sharing mechanisms that completely alter the original coordination structures. Currently, the interaction between BCTs and AFSCs is mainly through third-party blockchain companies at pilot stage that provides services of product traceability. Meanwhile, the BCT-enabled information sharing mechanisms mostly still remain conceptual. Although the existing literature justifies the benefits of implementing BCTs corresponding to its characteristics such as data integrity, immutability, and decentralization, there is blank space identifying a comprehensive scenario which considers both positive and negative impact of the nonidentical use of BCTs combined with different supply chain strategies on AFSCs. Therefore, this paper aims to provide quantitative assessment of BCT-enabled AFSCs regarding two dimensions -sustainability and business performances. The analysis and results may provide valuable insights for decision makers along AFSCs on the relatively more desirable investment directions regarding BCTs and supply chain strategies.

A MCDA approach comprising Analytic Hierarchy Process (AHP), Analytic Network Process (ANP), and Benefits-Opportunities-Costs-Risks (BOCR) analysis is applied with all the complex and conflicting factors involved in the problem context. The newly proposed hybrid BOCR-based AHP-ANP model alternates between AHP and ANP as the subnets or sub hierarchies of the BOCR merits. Such approach resolves certain limitations of a thorough AHP or ANP model. Also, three alternatives in total concerning BCTs and different supply chain strategies are evaluated and prioritized under each subnet or sub hierarchy. Finally, the results of the composite scores are synthesized using five distinct approaches, which yields a conclusion that BCT-enabled traceability systems appear to be most appropriate for producing satisfying business performances and constructive sustainable development. Meanwhile, the results also suggest that the negative impact of adopting BCTs - costs, risks, and other challenges, are profound. This explains why the alternative of a thorough implementation of BCTs in AFSCs is not prioritized. Last but not least, BCT-enabled AFSCs undoubtedly outperform the conventional centralized information-sharing architectures in terms of engendering direct benefits and future opportunities. Based upon the findings of the results, pragmatic recommendation is provided for businesses in AFSCs, which stresses the equal importance of supply chain coordination when concentrating on BCT implementation. It is worthwhile investigating BCT-enabled AFSCs integrated with supply chain coordination strategies with a broader scope and a more detailed context in future studies.