Viable supply chain with vendor-managed inventory approach by considering blockchain, risk and robustness

This research shows a Viable Supply Chain with Vendor Managed Inventory approach by considering Blockchain, Risk, and Robustness. We embedded Blockchain Technology (BCT) to improve SC agility. To tackle risk and robustness, we suggest a new objective function with the weighted expected value, worst case, and Entropic Value at Risk for considering risk and robustness under different scenarios. This model is Mixed-Integer Linear Programming, and GAMS-Bonmin is utilized to solve it. The case study of this research is on the Pharmacy industry. We compare problems in the situation with BCT and without BCT. The results show that the cost function of the main problem without BCT is greater than the same problem with BCT, and its gaps are 0.61%. Finally, the cost function increase by increasing the conservative coefficient and decreasing the resiliency coefficient. The cost function reduces by increasing the confidence level. We change the scale of the problem and define problems. By increasing the scale of the problem, the solution time increased.

Automated summary

This research focuses on improving supply chain agility through the use of blockchain technology, and considers risk and robustness by incorporating weighted expected value, worst case, and Entropic Value at Risk in the objective function. The findings show that the cost function is reduced when using blockchain technology, and can be increased by adjusting the conservative coefficient and resiliency coefficient.