# Leveraging Blockchain and Consignment Contracts to Optimize Food Supply Chains Under Uncertainty
## 2 Literature Review  
Blockchain technology is still in its infancy and can have potentially transformational and fundamental effects on the food supply chain (FSC) as described in [5; 6]. Regarding the advantages of the technology, these papers reported that adopting blockchain may boost FSC collaboration partnerships, increase food traceability, maximize operational efficiencies, and support food trading operations. Three categories--technical, organizational, and regulatory barriers--cover the majority of the drawbacks of blockchain technology. The main obstacles preventing the mainstream adoption of the technology are concerns about blockchain scalability, security, and privacy. [PERSON] et al. [7] derived closed-form expressions for the retailer's anticipated profit growth and food waste reduction brought about by blockchain adoption, which demonstrated the importance of blockchain-enabled freshness transparency. A case study for the dairy sector was proposed by [PERSON] et al. [1]. However, they ignored the concept of consignment policy in their study. [PERSON] et al. [8] described an extension of the newsvendor problem for important commodities or items with larger excess or shortage costs but to the same degree. The authors discuss several estimators of the ideal order quantity based on a random sample of demand while also assuming that the parameters of the demand distribution are unknown. [PERSON] et al. [9] present the basic ideas of smart contracts and NFTs, discussing how they can transform the market by reducing these transaction costs. [PERSON] et al. [10] investigated the commercial methods used by many product and service platforms. comparing the benefits of various blockchain capabilities for operations management. [PERSON] et al. [11] provide a distributionally sound method to address the newsvendor issue. The method offers a lower bound on the expected profit and only requires the first and second moments of the redemption rate and demand distributions  
Blockchain technology is fundamentally transforming the food supply chain by facilitating unprecedented levels of transparency and traceability. This decentralized ledger framework meticulously records each phase of a food product's trajectory, from agricultural production to consumption, thereby ensuring both immutability and security. Such enhanced visibility permits swift identification and containment of foodborne illness outbreaks, significantly mitigating public health risks. Furthermore, blockchain technology empowers consumers to make well-informed decisions by authenticating the provenance, quality, and sustainability practices associated with their food products. By optimizing operational processes and diminishing administrative burdens, blockchain also enhances efficiency and cost-effectiveness for enterprises. Ultimately, blockchain technology equips stakeholders throughout the food supply chain, promoting trust, accountability, and a safer, more sustainable food ecosystem. [PERSON] et al. [12] discussed developing knowledge and information on how to maximise the application of blockchain technology to fortify the food supply chain's traceability system. [PERSON] and [PERSON] [13] proposed investigating food conditions and the numerous challenges experienced by carriers when selling fresh food by integrating blockchain technology with Internet of Things (IoT) devices. [PERSON] et al. [14] developed a distribution-free newsvendor model considering environmental impacts and shortages with price-dependent stochastic demand. Blockchain technology presents a revolutionary approach for fostering sustainable supply chains by improving traceability, transparency, and accountability. Through the establishment of an immutable and decentralized ledger, blockchain meticulously documents the progression of products from their origin to the final consumer, thereby ensuring adherence to ethical and sustainable practices throughout the supply chain ([PERSON] and [PERSON] [15]).