How does the retailing industry decide the best replenishment strategy by utilizing technological support through blockchain?

【Author】 Saxena, Neha; Sarkar, Biswajit

【Source】JOURNAL OF RETAILING AND CONSUMER SERVICES

【影响因子】10.972

【Abstract】Practitioners face two significant issues: product inaccuracy and transparency in supply chain management. Blockchain is a highly secure and trustworthy means of storing data. Radio frequency identification incorpo-ration is essential if reliability is at a low level. Incorporating radio frequency identification can improve supply chain management in terms of product's visibility for the best replenishment strategy. A production and replenishment coordination via mathematical modeling is visualized through a three-echelon supply chain with a non-reliable production process, and the retailer deals with misplacement issues. The manufacturer handles the inventory flowing reversely and is responsible for proper end-of-life treatment, either repairing or remanu-facturing. Repairs are sold in bulk on the secondary market, and remanufactured items are used to prevent re-tailers' shortages. In this model, radio frequency identification technology on the physical surface is combined with a blockchain on the cyber surface, containing all the information about the product, including its location and attributes. A comparative study is provided for the traditional supply chain with misplacement versus a blockchain-based supply chain with radio frequency identification. An analytical approach is used to arrive at the optimum policy for the practitioners, and numerical analysis illustrates the problem. Numerical experiments indicate that the technology is highly profitable for supply chain management. Radio frequency identification technology can increase profit by up to 61%. After discrepancy, holding cost is the second most sensitive parameter for the profit function. If the holding cost is higher, profit can be increased by 40% using radio fre-quency identification and blockchain. The negative effect of misplacement is reduced with an increasing demand rate, but the reduction rate is very slow. The choice of not adopting radio frequency identification can only be successful if demand is so high that it can reduce the effect of misplacement.

【Keywords】Retailing industry; Replenishment; Supply chain management; Blockchain technology; Radio frequency identification (RFID)

【发表时间】2023 MAR

【收录时间】2023-01-04

【文献类型】实证数据

【主题类别】

区块链应用-实体经济-供应链