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

Reza Lotfi; Mohsen Rajabzadeh; Abolfazl Zamani; Mohammad Sadra Rajabi

doi:10.1007/s10479-022-05119-y

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

Ann Oper Res. 2022 Dec 16:1-20. doi: 10.1007/s10479-022-05119-y. Online ahead of print.

Authors

Reza Lotfi^{1

2}, Mohsen Rajabzadeh³, Abolfazl Zamani⁴, Mohammad Sadra Rajabi⁵

Affiliations

¹ Department of Industrial Engineering, Yazd University, Yazd, Iran.
² Behineh Gostar Sanaye Arman, Tehran, Iran.
³ Department of Management, Kheradgarayan Motahar Institute of Higher Education, Mashhad, Iran.
⁴ Faculty of Industrial Engineering, Faculty of Engineering, Zahedan Azad University, Zahedan, Iran.
⁵ School of Civil Engineering, College of Engineering, University of Tehran, Tehran, Iran.

Abstract

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.

Keywords: Blockchain; Risk; Robustness; Vendor managed inventory; Viable supply chain.

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