Inference of product quality by using RFID-enabled traceability information a study on the US pharmaceutical supply chain

Abstract

We present a stochastic model to infer a product quality index by using product traceability information. We propose a model by using Bayesian Network and apply it to the US pharmaceutical supply chain where regulations to mandate exchanging of traceability information for individual prescription drugs are being studied. In supply chains where traceability information of only a few products is available, consumers simply take the quality of products with traceability information is higher than those without traceability information. But when traceability information of many products becomes available, consumers need to understand the difference and choose the products that have a suitable quality for them. Our model can be used in this situation. We show that our model successfully differentiate product quality indices by using a numerical study with a hypothetical scenario.