Blockchain-Enhanced Inventory Management in Decentralized Supply Chains for Finite Planning Horizons

Abstract

This research introduces a decentralized supply chain optimization model that incorporates blockchain technology.The model, implemented through an optimized iterative method, integrates ordering, holding, and purchasing costs to offer a comprehensive view of total costs for both retailers and suppliers.The model's uniqueness and optimality are demonstrated through theoretical analysis, highlighting the optimal ordering interval as the sole solution to the derived equation.Employing an algorithmic methodology, optimal replenishment schedules are efficiently calculated using Wolfram Mathematica 13.0.A numerical example and sensitivity analysis illustrate the impact of key parameters on replenishment cycles, order quantity, and costs, encompassing wholesale prices, demand uncertainty, and holding/ordering costs.Managerial insights derived from sensitivity analysis guide decision-makers in optimizing supply chain management, emphasizing strategies such as wholesaler price balance and strategic blockchain information management.In essence, this research contributes to an enhanced understanding of decentralized supply chain models with blockchain, providing a systematic decisionmaking optimization approach for increased efficiency and resilience.

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