Based on the influence of block chain technology on information sharing among supply chain participants, mean-CVaR (conditional value at risk) is used to characterize retailersâ risk aversion behavior, while a Stackelberg game is taken to study the optimal decision-making of manufacturers and retailers during decentralized and centralized decision-making processes. Finally, the mean-CVaR-based revenue-sharing contract is used to coordinate the supply chain and profit distribution. The research shows that, under the condition of decentralized decision-making, when the retailerâs optimal order quantity is low, it is an increasing function of the weighted proportion and the risk aversion degree, while, when the retailerâs optimal order quantity is high, it is an increasing function of the weighted proportion, and has nothing to do with the risk aversion degree. The manufacturerâs blockchain technology application degree is a reduction function of the weighted proportion. When the retailerâs order quantity is low, the manufacturerâs blockchain technology application degree is a decreasing function of risk aversion, while, when the retailerâs order quantity is high, the manufacturerâs blockchain technology application is independent of risk aversion. The profit of the supply chain system under centralized decision-making is higher than that of decentralized decision-making. The revenue sharing contract can achieve the coordination of the supply chain to the level of centralized decision-making. Through blockchain technology, transaction costs among members of the supply chain can be reduced, information sharing can be realized, and the benefits of the supply chain can be improved. Finally, the specific numerical simulation is adopted to analyze the weighted proportion, risk aversion and the impact of blockchain technology on the supply chain, and verify the relevant conclusions.
Sebastian Geiger, Daniel Schall, Sebastian Meixner, Andreas Egger
This paper introduces a novel Machine Sharing Economy (MSE) approach to support machine owners in sharing idle machine capacities by means of a marketplace. Manufacturing networks and supply chains are thus no longer static and driven by long-term agreements, but rather dynamic and time-bound. In such distributed manufacturing systems, it is important to keep track of the operations that have been performed, including relevant production information such as the actual machines performing a task, tools, and their parameters. We propose a tamper-proof blockchain-based framework to close the feedback cycle by emitting relevant events of the production process and storing process values in the blockchain. This paper describes the overall architecture of the system including a detailed discussion how the feedback cycle for distributed manufacturing systems has been realized using blockchains. In addition, we perform an empirical validation at a real-world digital factory and present our lessons learned.
Thomas K. Dasaklis, Fran Casino, Constantinos Patsakis
Identifying the optimal granularity level of traceable units is necessary when implementing traceability, particularly in food supply chains. In this paper we propose a generic framework for defining granularity levels based on product's unique characteristics, supply chain processes and stakeholders engagement. We determine different levels of granularity by using smart contracts within a blockchain-enabled supply chain traceability architecture. The granularity relates to different levels depending on the application of information within a company and between companies across complex supply chain networks. The applicability of the proposed framework is demonstrated with a food supply chain use case scenario by developing a local private blockchain-enabled architecture. The overall benefits of the proposed model are discussed along with several fruitful areas for further research directions.
In this paper, we develop a more general framework of block-structured Markov processes in the queueing study of blockchain systems, which can provide analysis both for the stationary performance measures and for the sojourn time of any transaction or block. In addition, an original aim of this paper is to generalize the two-stage batch-service queueing model studied in Li et al. (Blockchain queue theory. In: International conference on computational social networks. Springer: New York; 2018 . p. 25â40) both âfrom exponential to phase-typeâ service times and âfrom Poisson to MAPâ transaction arrivals. Note that the MAP transaction arrivals and the two stages of PH service times make our blockchain queue more suitable to various practical conditions of blockchain systems with crucial factors, for example, the mining processes, the block generations, the blockchain building and so forth. For such a more general blockchain queueing model, we focus on two basic research aspects: (1) using the matrix-geometric solution, we first obtain a sufficient stable condition of the blockchain system. Then, we provide simple expressions for the average stationary number of transactions in the queueing waiting room and the average stationary number of transactions in the block. (2) However, on comparing with Li et al. ( 2018 ), analysis of the transactionâconfirmation time becomes very difficult and challenging due to the complicated blockchain structure. To overcome the difficulties, we develop a computational technique of the first passage times by means of both the PH distributions of infinite sizes and the RG factorizations. Finally, we hope that the methodology and results given in this paper will open a new avenue to queueing analysis of more general blockchain systems in practice and can motivate a series of promising future research on development of blockchain technologies.
Blockchain technology along with Internet of Things (IoT) and Cloud Computing is expected to cause disruption in the existing business processes at unprecedented scale. Smart Contracts which represent business logic are consolidated by blockchain architecture. A smart contract is a self-executing program that may be triggered on events generated by IoT sensors, actuators or tags. Blockchain and smart contracts which find their optimum suitability in multiparty arrangements are anticipated to bring a paradigm shift in the domains of Supply-chain and logistics. This paper presents a comprehensive analysis of the disruptive innovation happening in the logistics processes due to blockchain, smart contracts and Internet of Things. We highlight the some of the most important Key Performance Indicators (KPIs) of the logistics domain being positively affected due to this digital disruption and the required characteristics in the blockchain technologies for this paradigm shift to take place.
Maciel M. Queiroz, Renato Telles, SĂlvia H. Bonilla
Purpose This paper aims to identify, analyse and organise the literature about blockchains in supply chain management (SCM) context (blockchainâSCM integration) and proposes an agenda for future research. This study aims to shed light on what the main current blockchain applications in SCM are, what the main disruptions and challenges are in SCM because of blockchain adoption and what the future of blockchains holds in SCM. Design/methodology/approach This study followed the systematic review approach to analyse and synthesise the extant literature on blockchainâSCM integration. The review analysed 27 papers between 2008 and 2018 in peer-reviewed journals. Findings BlockchainâSCM integration is still in its infancy. Scholars and practitioners are not fully aware of the potential of blockchain technology to disrupt traditional business models. However, the electric power industry seems to have a relatively mature understanding of blockchainâSCM integration, demonstrated by the use of smart contracts. Additionally, the disintermediation provided by blockchain applications has the potential to disrupt traditional industries (e.g. health care, transportation and retail). Research limitations/implications The limitations of this study are represented mainly by the scarcity of studies on blockchainâSCM integration in leading journals and databases. Practical implications This study highlights examples of blockchainâSCM integration, emphasising the need to rethink business models to incorporate blockchain technology. Originality/value This study is the first attempt to synthesise existing publications about the blockchainâSCM integration, shedding light on the disruption caused by, and the necessity of, the SCM reconfigurations.
Praveen Kumare Gopalakrishnan, Varsha Ananth, Kemper Lewis, Sara Behdad
Abstract As the concept of the visible product lifecycle and product tracking becomes important to consumers, emerging technologies such as Internet of Things (IoT)-based networks and Blockchain platforms are considered promising solutions by Original Equipment Manufacturers (OEMs) to increase their brand reputation, improve their consumersâ experiences, and reduce their operational costs. However, costly implementation, data verification issues, and the risk of uploading inaccurate information on those platforms have limited the adoption rate and capabilities offered by the aforementioned technologies. Companies often face the question of what type of distributed ledger technology and verification protocol is more efficient in terms of operational costs as well as security. The purpose of this study is to develop an optimization framework to make a trade-off between the cost of implementation of the technology and the security level. The framework is developed based on utility theory principles. The main focus is to discuss the cost associated with various aspects of technology implementation. Finally, this general cost framework is shown as a demo for an example of the food supply chain.
Integrating triple bottom line (TBL) goals into supply chains (SCs) is a challenging task which necessitates the careful coordination of numerous stakeholdersâ individual interests. Recent technological advancements can impact TBL sustainability by changing the design, structure, and management of modern SCs. Blockchain technology enables immutable data records and facilitates a shared data view along the supply chain. The Physical Internet (PI) is an overarching framework that can be applied to create a layered and comprehensive view of the SC. In this conceptual paper, I define and combine these technologies and derive several high-level research areas and research questions (RQ) to investigate adoption and management as well as structural SC issues. I suggest a theory-based research agenda for the years to come that exploits the strengths of rigorous academic research, while remaining relevant for industry. Furthermore, I suggest various well-established theories to tackle the respective research questions and provide specific directions for future research.
Blockchains are attracting the attention of stakeholders in many industrial domains, including the logistics and supply chain industries. Blockchain technology can effectively contribute in recording every single asset throughout its flow on the supply chain, contribute in tracking orders, receipts, and payments, while track digital assets such as warranties and licenses in a unified and transparent way. The paper provides, through its methodology, a detailed analysis of the blockchain fit in the supply chain industry. It defines the specific elements of blockchain that affect supply chain such as scalability, performance, consensus mechanism, privacy considerations, location proof and cost, and details on the impact that blockchains will have in disrupting the supply chain industry. Discussing the tradeoff between consensus cost, throughput and validation time it proceeds with a suggested high-level architectural approach, and concludes as a result with a discussion on changes needed and challenges faced for an in-vivo deployment of blockchains in the supply chain industry. While the technological features of modern blockchains can effectively facilitate supply chain uses cases, the various challenges that still remain, bring in front of us a wide set of needed changes and further research efforts for achieving a global, production level blockchain for the supply chain industry.
Blockchain possesses the potential of transforming global supply chain management. Gartner predicts that blockchain could be able to track $2 T of goods and services in their movement across the globe by 2023, and blockchain will be a more than $3 trillion business by 2030. Nowadays, a growing number of blockchain initiatives are disrupting traditional business models in each sector. In this paper, we provide a timely and holistic overview of the state-of-the-art, challenges, gaps and opportunities in global supply chain and trade operations for both the private sector and governmental agencies, by synthesising a wide range of resources from business leaders, global international organisations, leading supply chain consulting firms, research articles, trade magazines and conferences. We then identify collaborative schema and future research directions for industry, government, and academia to jointly work together in ensuring that the full potential of blockchain is unleashed amidst the socioeconomic, geopolitical and technological disruptions that global supply chains and trade are facing.
The results show that transparency and auditability, security and indelibility, and distribution and sustainability are the key attributes of blockchain-based solutions in 56% of the articles reviewed. These three aspects represent the foundation of blockchain technologies which may contribute positively to improve supply management processes. Moreover, immutability, tracking and tracing, and smart contracts are also included in nearly a third of the cases. Moreover, efficiencies and costs through this technology would reduce the costs in payment of intermediaries, reduce paperwork, and help in the shipment of physical documents. Supply chain plays a critical role in the global trade and urgently needs to reassess its models in searching for greater efficiencies. Moreover, better results in visibility across the chain will increase trust for the customers and all interested parties. Secure transactions, strong security mechanisms that prevent fraud and illegal practices, could be achieved through the blockchain.
The following article sums up the current problems of the logistics and explains how the Blockchain technology can help to solve some of them. A utility value analysis is used to quantify the scenarios the Blockchain is most likely to be used in. This offers a result that, in comparison to current research, does not only show the opportunities but also how likely they are to be used in these sections. In the next step these scenarios are compared with each other. These results lead to a outlook to potential applications of the Blockchain technology in the logistics.
Mian Wasim Layaq, Alexander Goudz, Bernd Noche, Muhammad Atif
The main purpose of this paper is to investigate the research development in supply chain risk management (SCRM) and to connect the new emerging digital technology Blockchain that could help to mitigate risks in any supply chain. Emerging literature, case studies, citations are used to fulfil this the task. The study will explore Blockchain and supply chain risks in details and will compare, how Blockchain based supply chain can mitigate these risks. There are many risks associated to supply chains but we will limit our study to only supply risk and study different areas of Blockchain application in supply chain with supply risk. Blockchain technologies have a potential to upgrade current supply chains. This will not only increase its performance in terms of speedy flow of raw material, finished goods, information and money flow but also help to mitigate current risk in supply chain by increasing visibility and transparency of supply chain. Smart contracts, IoT and Blockchain can serve together to achieve maximum efficiency and effectiveness in SCM. This research contributes to explore further research fields of Blockchain technology in different areas of supply chain risk management.
Jan 1, 2019·Proceedings of the ... Annual Hawaii International Conference on System Sciences/Proceedings of the Annual Hawaii International Conference on System Sciences
Julian Kolb, Luc Becker, Marcus Fischer, Axel Winkelmann
Disruptive technologies, such as artificial intelligence, machine learning, or the blockchain, have the potential to transform entire industries as previous publications have outlined. They especially offer new opportunities to improve existing processes in the dimensions of performance, cost, and quality. Despite a continuously growing number of contributions, research and practice lack an adequate understanding about how blockchain can be used to achieve these benefits. Against this backdrop, this paper presents the current state of blockchain research in the field of enterprise procurement and outlines several avenues for future research. Therefore, we define relevant processes and functions to build a research framework for structuring and categorizing the current body of literature. Our results suggest that previous work mostly focuses on blockchain application scenarios with a focus on communication and transaction, while widely neglecting numerous fields, such as data integrity and data access.
In the last few years, blockchain technologies have come to the forefront of the research and industrial communities as they bring potential benefits for many industries. Even though the blockchain is a safe, reliable, and innovative mechanism, current blockchain solutions have fatal drawbacks of non-supervision and huge computational overhead. Therefore, they cannot be directly applied for real world operations. To resolve this problem, a novel model is presented in this study where the key idea is to split the transactions among multiple shards while processing them in parallel. To achieve the maximum system efficiency through the shard mechanism, we focus on the cooperative game theory. Based on the egalitarian bargaining solution, total transactions per each time period are divided for each shard. According to the proportional bargaining solution, assigned transactions in each individual shard are validated by blockchain nodes in a distributed manner. The main advantage of our two-phase bargaining game model is to provide an axiom-based strategic solution for the shard-based consensus problem while dynamically responding to the current blockchain network conditions. The numerical simulation results show that the effectiveness and efficiency of our game based approach by comparing the existing state-of-the-art blockchain control schemes. In the conclusion, we present our conclusions and provide important future research directions based on the combination of blockchain with other technologies.
The blockchain technology impacts the supply chain and allows the creation of smart contract. This contract is executed digitally and securely without the presence of a middleman when all requirements are met. West and Central Africa countries produce 70% of worldâs cocoa, while child labour is an issue as millions of children work in that sector. This paper contribution is mainly to enlighten smart contract adoption with respect to child abuse and to contribute to strategies for child labour reduction.
BACKGROUND: An efficient inventory control system would help optimize the use of resources and eventually help improve patient care. OBJECTIVES: The study aimed to find out the surgical consumables using always, better, and control (ABC) and vital, essential, and desirable (VED) technique as well as calculating the lead time of specific category A and vital surgical consumables. METHODS: This was a descriptive, record-based study conducted from January to March 2016 in the surgical stores of the All India Institute of Medical Sciences, New Delhi. The study comprised all the surgical consumables which were procured during the financial year 2014-2015. Stores ledger containing details of the consumption of the items, supply orders, and procurement files of the items were studied for performing ABC analysis and calculating the lead time. A list of surgical consumables was distributed to the doctors, nursing staff, technical staff, and hospital stores personnel to categorize them into VED categories after explaining them the basis for the classification. RESULTS: ABC analysis revealed that 35 items (14%), 52 items (21%), and 171 items (69%) were categorized into A (70% annual consumption value [ACV]), B (20% ACV), and C (10% ACV) category, respectively. In the current study, vital items comprised the majority of the items, i.e., 73% of the total items and essential (E) category of items comprised 26% of all the items. The average internal, external, and total lead time was 17 days (range 3-30 days), 25 days (range 5-38) and 44 days (range 18-98 days), respectively. CONCLUSIONS: Hospitals stores need to implement inventory management techniques to reduce the number of stock-outs and internal lead time.