A blockchain-based approach for a multi-echelon sustainable supply chain

Blockchain technology is destined to revolutionise supply chain processes. At the same time, governmental and regulatory policies are forcing firms to adjust their supply chains in response to environmental concerns. The objective of this study is therefore to develop a distributed ledger-based blockchain approach for monitoring supply chain performance and optimising both emission levels and operational costs in a synchronised fashion, producing a better outcome for the supply chain. We propose the blockchain approach for different production allocation problems within a multi-echelon supply chain (MESC) under a carbon taxation policy. As such, we couple recent advances in digitalisation of operations with increasingly stringent regulatory environmental policies. Specifically, with lead time considerations under emission rate constraints (imposed by a carbon taxation policy), we simultaneously consider the production, distribution and inventory control decisions in a production allocation-based MESC problem. The problem is then formulated as a Mixed Integer Non-Linear Programming (MINLP) model. We show that the distributed ledger-based blockchain approach minimises both total cost and carbon emissions. We then validate the feasibility of the proposed approach by comparing the results with a non-dominated sorting genetic algorithm (NSGA-II). The findings provide support for policymakers and supply chain executives alike.     

Distributed ledger technology in supply chains: a transaction cost perspective

With the emergence of distributed ledger technology (DLT), numerous practitioners and researchers have proclaimed its beneficial impact on supply chain transactions in the future. However, the vast majority of DLT initiatives are discontinued after a short period. With the full potential of DLT laying far down the road, especially managers in supply chain management (SCM) seek for short-term cost-saving effects of DLT in order to achieve long-term benefits of DLT in the future. However, the extant research has bypassed grounding long-term as well as short-term effects of DLT on supply chain transaction with empirical data. We address this shortcoming, following an abductive research approach and combining empirical data from a multiple case study design with the corresponding literature. Our study reveals that the effects of DLT on supply chain transactions are two-sided. We found six effects of DLT solutions that have a cost-reducing or cost avoidance impact on supply chain transactions. In addition, we found two effects that change the power distribution between buyers and suppliers in transactions and a single effect that reduces the dependency of supply chain transactions on third parties. While cost-reducing and avoidance as well as dependency-reducing effects are positive effects, the change in power distribution might come with disadvantages. With these findings, the paper provides the first empirical evidence of the impact of DLT on supply chain transactions, which will enable managers to improve their assessment of DLT usage in supply chains.     

Expert oriented approach for analyzing the blockchain adoption barriers in humanitarian supply chain

In digital era, blockchain technology has been known as the operational innovation that is rapidly joining the context of humanitarian supply chain and relief logistic. Hence, it has the potential to change the humanitarian context fundamentally, but there is still relatively little-published research aimed at improving the understanding of the different barriers of the blockchain adoption in humanitarian supply chain. The goal of this research is to present a comprehensive review of blockchain adoption barriers in the context of humanitarian supply chain management. An integrated approach using Fuzzy Delphi and Best-Worst method (BWM) has been used for analyzing the barriers. Based on the literature, 14 barriers of the blockchain adoption in humanitarian supply chain were identified. According to the Fuzzy Delphi result, 9 barriers were accepted. After that, the BWM calculated the importance of each barrier. The findings showed that regulatory uncertainty, lack of knowledge/employee training and high sustainability costs are the important barriers. This research provides useful guidelines for policy makers so that they can benefit from the results to optimize their solutions.     

Blockchain-oriented dynamic modelling of smart contract design and execution in the supply chain

Recently, the applications of Blockchain technology have begun to revolutionise different aspects of supply chain (SC) management. Among others, Blockchain is a platform to execute the smart contracts in the SC as transactions. We develop and test a new model for smart contract design in the SC with multiple logistics service providers and show that this problem can be presented as a multi-processor flexible flow shop scheduling. A distinctive feature of our approach is that the execution of physical operations is modelled inside the start and completion of cyber information services. We name this modelling concept ‘virtual operation’. The constructed model and the developed experimental environment constitute an event-driven dynamic approach to task and service composition when designing the smart contract. Our approach is also of value when considering the contract execution stage. The use of state control variables in our model allows for operations status updates in the Blockchain that in turn, feeds automated information feedbacks, disruption detection and control of contract execution. The latter launches the re-scheduling procedure, comprehensively combining planning and adaptation decisions within a unified methodological framework of dynamic control theory. The modelling complex developed can be used to design and control smart contracts in the SC.     

Preparing construction supply chains for blockchain technology: An investigation of its potential and future directions

Blockchain, a peer-to-peer, controlled, distributed database structure, has the potential to profoundly affect current business transactions in the construction industry through smart contracts, cryptocurrencies, and reliable asset tracking. The construction industry is often criticized for being slow in embracing emerging techno-logies and not effectively diffusing them through its supply chains. Often, the extensive fragmentation, traditional procurement structures, destructive competition, lack of collaboration and transparency, low-profit margins, and human resources are shown as the main culprits for this. As blockchain technology makes its presence felt strongly in many other industries like finance and banking, this study investigates the preparation of construction supply chains for blockchain technology through an explorative analysis. Empirical data for the study were collected through semi-structured interviews with 17 subject experts. Alongside presenting a strengths, weaknesses, opportunities, and threats analysis (SWOT), the study exhibits the requirements for and steps toward a construction supply structure facilitated by blockchain technology.     

RFID research and testing for packages of apparel,consumer goods and fresh produce in the retail distribution environment

Radio frequency identification (RFID) is a term used for any device that can be sensed at a distance by radio frequencies with few problems of obstruction. The origins of the term lie in the invention of tags that reflect or retransmit a radio‐frequency signal. According to a recent article by Forrester Research, the minimal ‘Slap and Ship’ approach to RFID compliance will cost an individual company between $2 million and $20 million. Because retailers like Wal‐Mart plan to share with their suppliers all the RFID‐generated data points (from when a case/pallet enters their distribution centre until it leaves their stockroom), suppliers will eventually be able to use this data as a powerful forecasting tool. RFID is an enabling technology that can potentially facilitate a real‐time, end‐to‐end supply chain visibility system. Suppliers who integrate full‐scale RFID systems will realize efficiencies in time, material movement, inventory planning, shipping and warehousing both internally and externally. This paper provides a brief overview of the RFID technology, mandates by retailers and federal agencies, advances towards global standardization and typical consumer level RFID applications, and discusses RFID initiatives taken by some of the global leaders in apparel, consumer goods and fresh produce industries. Copyright © 2007 John Wiley & Sons, Ltd.     

Unearthing the determinants of Blockchain adoption in supply chain management

The behavioural intention to adopt Blockchain for supply chain management (BCSCM) is studied in this paper. The research framework adopted considers how Performance Expectancy (PE), Effort Expectancy (EE), Facilitating Condition (FC), Technology Readiness (TR), Technology Affinity (TA) and Trust (TT) can lead to the adoption of the technology. Data gathered from 157 firms is analysed using SPSS version 2 while the quality of the measurement is tested using WarpPLS. Findings revealed that FC, TR and TA have a positive influence on intention to use BCSCM and regulatory support moderates the effect of FC. This study offers valuable insights into the applicability of Blockchain technology for supply chain management.     

Multi-period hedging and coordination in a prefabricated construction supply chain

In this paper, a multi-period buffer space hedging coordination between a building contractor (BC) and a logistics provider (LP) is investigated. In order to facilitate the application of the construction lead-time hedging (CLTH) strategy, adopted by the BC, extra buffer space needs to be reserved at LP’s intermediate warehouse for contingency usage. This strategy is defined as ‘buffer space hedging (BSH)’ and it increases the pressure of LP on involving extra storage and maintenance cost. Two coordination mechanisms are adopted for solving this BSH problem. One scheme is by introducing a cost-sharing term. A Nash game model is studied to find the individual optimal decisions. Another scheme is a cooperative game model with proper side-payments. We show that adjusting the BSH amount for each review period benefits the supply chain. Both coordination mechanisms enable a win–win outcome. Especially, if system resources are sufficient, the cooperative game outperforms the Nash game. Numerical experiments further demonstrate that the benefit of the proposed model is more significant under the case with lower unit enlarging/rearrangement cost, higher tardiness penalty and unpredictable and uncontrollable construction process-determined assembled and installed prefabs.     

Geoengineering and the blockchain: Coordinating Carbon Dioxide Removal and Solar Radiation Management to tackle future emissions

Geoengineering is a proposed response to anthropogenic global warming (AGW). Conventionally it consists of two strands: Solar Radiation Management (SRM), which is fast-acting, incomplete but inexpensive, and Carbon Dioxide Removal (CDR), which is slower acting, more expensive, and comprehensive. Pairing SRM and CDR offers a contractually complete solution for future emissions if effectively-scaled and coordinated. SRM offsets warming, while CDR takes effect. We suggest coordination using a blockchain, i.e. smart contracts and a distributed ledger. Specifically, we integrate CDR futures with time and volume-matched SRM orders, to address emissions contractually before release. This provides an economically and environmentally proportionate solution to CO2 emissions at the wellhead, with robust contractual transparency, and minimal overhead cost. Our proposal offers a ‘polluter pays’ implementation of Long & Shepherds SRM ‘bridge’ concept. This ‘polluter geoengineers’ approach mandates and verifies emissions-linked payments with minimal friction, delay, or cost. Finally, we compare alternative market designs against this proposal, finding that this proposal offers several advantages. We conclude that blockchain implementation of the ‘polluter geoengineers’ approach is attractive and feasible for larger wellhead contracts. We also identify a handful of advantages and disadvantages that merit further study.     

A strategic model for exact supply chain network design and its application to a global manufacturer

This paper presents a comprehensive model that captures significant strategic decisions involved in designing or redesigning high-performance supply chains from the perspective of the manufacturer. The problem considers deterministic demand by multiple clients, for multiple products, over the periods of a long-term horizon. The design decisions involve selection of suppliers, establishment or resizing of production facilities and distribution centres, possible subcontracting of related activities, and selection of transportation modes and routes. The problem is formulated by a Mixed Integer Linear Programming model. Its objective is to minimise the overall costs associated with procurement, production, inventory, warehousing, and transportation over the design horizon. Appropriate constraints model the complex relationships among the links of the supply chain. The proposed model has been applied to a large case study of a global manufacturing firm, providing valuable insights into the transformation of the firm’s current supply chain network, as well as into the potential of the proposed approach.     

Integrated innovative product design and supply chain tactical planning within a blockchain platform

In globalised manufacturing and production environments, companies increasingly tend to exploit public contribution advantages within designing, manufacturing and marketing processes. To be benefited from outbound capabilities, this paper presents a tactical supply chain planning model to integrate the designing process in the form of open innovation within the supply chain main processes. In this regard, a fuzzy mathematical model is proposed to optimise the tactical decisions according to supply chain objectives and open innovation considerations. On the other hand, intellectual property issues and protecting the rights of innovators are significant concerns that sometimes avoid companies to be engaged in open innovation initiatives. Therefore, this paper proposes a registering mechanism in which the ideas and creative works are collected, refined and finally approved within a blockchain platform. Furthermore, in order to deal with epistemic environmental uncertainty, the fuzzy set theory is utilised. To investigate the applicability of the developed model, a case study in home appliances domain is employed. The results show that the company can achieve favourable designs by spending approximately 1% of the supply chain total cost. Additionally, benefiting the registering mechanism can decrease the cost of using non-original designs more than 41%.     

产品与供应链匹配对企业绩效的影响研究

依据需求波动、预测难易性、变动复杂度、产品创新等指标得分,将产品划分为功能性和创新性两类,依据战略目标、合作关系、柔性、反应速度等指标得分,把供应链划分为效率型和反应型两种类型.结合产品和供应链匹配理论建立其对企业绩效影响的理论假设,对回收的111家企业调研问卷采用独立样本T检验方法进行分析.发现产品和供应链相匹配企业...     

Grammatical evolution in developing optimal inventory policies for serial and distribution supply chains

Recently, there has been a growing literature on biologically inspired algorithms, particularly genetic algorithms and genetic programming, applied to supply chain modelling and inventory control optimisation. Due to the rigidity of the genetic algorithms approach, it is difficult to change the underlying model logic and add richness to the supply chain. While genetic programming provides a more flexible approach than that provided by genetic algorithms, to date its application has been limited to small supply chain modelling problems in relation to optimal inventory policies. This research applies Grammatical Evolution, a relatively new biologically inspired algorithm, to the field of supply chain optimisation, employing human readable rules called grammars. These grammars provide a single mechanism to describe a variety of complex structures and can incorporate the domain knowledge of the practitioner to bias the algorithm towards regions of the search space containing better solutions. Results are presented showing Grammatical Evolution is at least competitive in cost terms, and superior in flexibility, with these methods applicable to any supply chain of the serial or distribution type. Furthermore, Grammatical Evolution shows an adaptive ability that augurs well for supply chains in dynamic environments, such as disruption.     

Minimising general setup costs in a two-stage production system

This paper addresses a problem arising in the coordination between two consecutive stages of a production system. Production is organised in batches of identical jobs. Each job is characterised by two distinct attributes, and all jobs sharing the same attributes are processed together as a single batch. Due to the structural and organisational characteristics of the production system, the two stages have to process the same batch sequence. When two consecutive batches with different attributes are processed, at least one stage must pay a setup, in order to reconfigure its own devices. Each stage incurs a setup cost that is a general non-decreasing function of the number of its own setups, and the problem consists of finding a batch sequence minimising the total setup costs of the production system. We present an original solution approach for the considered problem that is shown to be very effective using an extensive experimental campaign.     

供应链多阶响应周期的运作特点研究

首先说明了研究的背景和目的,介绍了研究方法、研究对象和多阶响应周期的构成,接着深入分析研究了供应链多阶响应周期各子周期和功能周期,总结了相应的运作特点,最后,研究了不同的管理模式对多阶响应周期的影响。结果表明,缩短多阶响应周期的关键是在供应链组织中建立起广义生产组织模式。     

Integration of global manufacturing networks and supply chains: a cross case comparison of six global automotive manufacturers

Striving for new business opportunities automotive original equipment manufacturers established overseas plants in emerging markets and global manufacturing networks evolved. In this regard so-called knocked down supply chains have been the key for the establishment of successful overseas operations. Importing all parts required from the original plants in form of easy to be handled kits secures a high product quality and stable supply despite lacking qualification of local workforce and supplier bases. Over time the overseas plants and global manufacturing networks have matured by increasingly taking over value adding processes and integrating local suppliers. However, the supply chain structure and management have not been adapted accordingly and still comprise high inventory buffers and lead times. There is little research on the integrated design of global manufacturing networks and knocked down supply chains. This research aims to contribute to close this research gap by means of a cross-case study with six globally operating OEMs investigating the fit of knocked down supply chains and global manufacturing networks. On the basis of transaction cost theory, we develop an integrated framework to align global manufacturing networks and knocked down supply chain design that can serve as guideline to open logistics performance and cost potentials.     

Inventory misplacement and demand forecast error in the supply chain: profitable RFID strategies under wholesale and buy-back contracts

We investigate RFID adoption strategies under wholesale price and buy-back contracts in a supply chain with one manufacturer and one retailer who faces inventory misplacement and demand forecast error. RFID can alleviate the misplacement problem, and can reduce demand forecast error by shortening order lead time. By a newsvendor model, we characterise the optimal contract terms in the supply chain without and with RFID adoption, respectively. We further analyse how the contract terms depend on RFID-related parameters (e.g. salable rate and demand forecast error). We find that both without and with RFID, the wholesale price contract will lead to the double marginalisation problem, while the buy-back contract can coordinate the supply chain. We show that the supply chain adopts RFID if and only if the tagging cost is below a threshold; the threshold is in negative correlation to the demand forecast error. The supply chain is more willing to adopt RFID under the buy-back contract than under the wholesale price contract. RFID adoption can sometimes lessen the double marginalisation problem under the wholesale price contract, improving the supply chain efficiency. A smaller RFID tagging cost or a reduced forecast error do not necessarily lead to higher supply chain efficiency.     

正确理解供应链与价值链的关系

首先较系统地概述了供应链和价值链的涵义,发展和研究状况,在此基础上深入地探讨了两者的本质区别与联系。两者有不尽相同的地方,如价值链思想是面向效益,着眼点是企业的价值增值过程;供应链思想是面向效率,主要是围绕物流、降低成本和提高生产率方面。但两者也有许多交叉的地方,如价值链研究把成本优势作为重要方面之一,供应链的发展也逐渐强调联系的重要性等。正确理解供应链与价值链的关系可以为实现两者的有效管理提供一     

Blockchain technology for enhancing swift-trust,collaboration and resilience within a humanitarian supply chain setting

There has been tremendous interest in blockchain technology (BT) (also known as distributed ledger technology) around the globe and across sectors. Following significant success in the financial sector, other sectors, such as humanitarian sector, have started deploying BT at various levels. Although the use of BT in the humanitarian sector is in its infancy, donors and government agencies are increasingly calling for building BT-enabled swift-trust (ST) and more collaborative relationships among various humanitarian actors in order to improve the transparency and traceability of disaster relief materials, information exchanges and flow of funds in disaster relief supply chains. Our study, which is informed by organisational information processing theory and relational view, proposes a theoretical model to understand how BT can influence operational supply chain transparency (OSTC) and ST among actors engaged in disaster relief operations. Our model also shows how BT-enabled ST can further improve collaboration (CO) among actors engaged in disaster relief operations and enhance supply chain resilience (SCR). We formulated and tested six research hypotheses, using data gathered from international non-governmental organisations with the help of the Coordinator for Humanitarian Affairs (OCHA) database. We received 256 usable responses using a pre-tested survey-based instrument designed for key informants. Our results confirm that our six hypotheses were supported. Our study offers significant and valid contributions to the literature on ST, CO and SCR and BT/distributed ledger technology. We have also noted the limitations of our study and have offered future research directions.