On the Value of Smart Contract and Blockchain in Designing Fresh Product Supply Chains

Abstract

The growing demand for fresh products presents a formidable challenge for managers to design a supply chain that is both cost-effective and efficient while maintaining the freshness of the products. This article examines the use of blockchain technology as a solution for enhancing resource sharing and improving the efficiency and sustainability of fresh product supply chains. In particular, we propose a smart contract that deals with the intricacies of the facility location-routing optimization problem, taking into account both resource sharing and product freshness requirements. To tackle this problem, we propose a hybrid solution approach that integrates a greedy clustering algorithm and the YALMIP toolbox. Our computational experiments validate the effectiveness of the proposed model and the feasibility of the presented solution method. Our research findings reveal the potential of blockchain technology in the fresh product industry, underscoring its significance in the development of sustainable and efficient supply chains. Furthermore, the proposed model and adopted solution method contribute to the advancement of the fresh product supply chain and provide practical suggestions for managers and policymakers.