A viable supplier selection with order allocation by considering robustness, risk-averse and blockchain technology

Abstract

The research introduces a novel approach called Viable Supplier Selection with Order Allocation considering Robustness and Risk-Aversion (VSSOARR), incorporating Blockchain Technology (BCT). The model utilizes a Robust Stochastic Optimization (RSO) technique with Weighted Value at Risk (WVaR) in the cost function. The objective function of this model combines the expected value and WVaR cost. The BCT platform is recommended to enhance agility in the face of disruptions. The research proposes sustainable requirements such as minimizing CO2 emissions and energy consumption management, ensuring minimum demand satisfaction, and incorporating facility capacity based on specific scenarios to enhance resiliency. The study involves various stakeholders, including suppliers and manufacturers. The main purpose of utilizing BCT is to facilitate swift transactions between components and support risk-averse decision-making. Integrating BCT as an agility instrument resulted in a 16.93% cost reduction for VSSOARR compared to scenarios where BCT was not considered. The research suggests incorporating viability with BCT positively impacts the supply chain’s overall performance. A sensitivity analysis was conducted on the conservatism coefficient, confidence level, agility rate, demand variation, and problem size.