Blockchain-enabled integrated model for production-inventory-delivery problem in Physical Internet

Blockchain technology (BCT) is gaining popularity, but its potential impact on Physical Internet (PI) has not been quantified. This study proposes an architecture that utilizes Ethereum to investigate the production-inventorydelivery problem in PI. To address this issue, we have developed a mixed-integer linear programming (MILP) model and implemented a two-phase iterative heuristic algorithm. Our analysis of a real-life scenario reveals that our algorithm outperforms the other algorithms. However, we find that BCT may not always be the optimal solution due to gas prices and gas consumption associated with executing transactions. Sensitivity analyses demonstrate that the total cost is more influenced by the price of gas and the cost of delayed delivery.

Automated summary

This study proposes an architecture that utilizes Ethereum to investigate the production-inventory-delivery problem in Physical Internet (PI), and develops an iterative heuristic algorithm that outperforms other algorithms. However, due to gas prices and consumption, blockchain technology may not always be the optimal solution.