A blockchain-based system for a network design problem considering pricing decisions and sustainability

Abstract

The emergence of cryptocurrency and blockchain technology revolutionizes supply chains. In addition, blockchain technology can result in novel models ensuring supply chain transparency, originality, and traceability. This research is aimed to develop a blockchain-based system ascertaining supply chain transparency and originality. To this aim, a joint pricing and sustainable network design model is developed for a closed-loop supply chain. Labeling products with internet-of-thing (IoT) and radio frequency identification (RFID) technology strengthens originality and traceability in this supply chain. Afterward, smart contracts deal with transparency concerns while pricing the used products in reverse flow and controlling CO2 emissions. By triggering smart contracts in disorder time, each facility's optimal price and demand can be optimized in an iterative process until the final solution is yielded. Then, the optimization phase of the blockchain-based system starts using data from a distributed ledger form. Then, a fuzzy satisfying approach is used to find the optimal solution across the Pareto regions. Finally, the model is evaluated using real data from the Hamedan glass industry, and sensitivity analyses are done to derive managerial insights, conducting further practitioners and managers of food, agriculture, health, and other supply chains.