Abstract
The study proposes a supply chain contractual coordination model based on the product lifecycle information sharing effort and consumers' price sensitivity to a product with the Blockchain system. This paper examined the following five scenarios: (1) centralized supply chain with Blockchain system-based product lifecycle information sharing investment; (2) Stackelberg leader retailer processed and invested Blockchain system scenario; (3) retailer processed the Blockchain system cost-sharing scenario; (4) retailer processed Blockchain system investment through bargaining the revenue-sharing model; (5) Blockchain system investment under the cost and revenue-sharing contract. The study used the game theory reverse induction method to compare the Nash equilibrium solutions under different decision-making scenarios and discussed the chain member’s constraint condition of Blockchain system investment. We simulated and analysed the products’ lifecycle information sharing effort cost factor, the influence of price sensitivity coefficient, and expected profits of the supplier and retailer. The study results show that the product lifecycle information sharing effort under the Blockchain system increases the profit of the whole chain and decreases with the increase of customer’s price sensitivity coefficient.
Highlights
Chain Management (SCM) is concerned with efficient management of the financial, material, and information flows among supply chain (SC) members [1]. e researchers are developing SC coordination, integration, and collaboration subject modes with forward or reverse stream strategies between different economic institutions to improve the overall performance of SC
(i) “Product Lifecycle” demonstrates “the series of stages and functional activities through which a product passes from the point of origin to the point of consumption” and it is mainly based on time and the proper value-added chain members
We first examined a benchmark centralized SC model, which is known as the vertical integration model. e second is a decentralized SC scenario, where the retailer is a Stackelberg leader (SL) with passive Stackelberg follower (SF) supplier structural observation. e third scenario is the decentralized decision mode with Blockchain system cost sharing when the retailer is a SL and the supplier is a SF, similar to [17]. rough the fourth scenario, we examined RS via bargaining model, similar to [18]. e fifth scenario presents the Blockchain system-based strategical approach via cost sharing as well as with revenue sharing among the SC members under the SL retailer structure
Summary
Chain Management (SCM) is concerned with efficient management of the financial, material, and information flows among supply chain (SC) members [1]. e researchers are developing SC coordination, integration, and collaboration subject modes with forward or reverse stream strategies between different economic institutions to improve the overall performance of SC. As a member in the value chain, their decisions and behaviors are mutually influenced. It is imperative that the decentralized SC members make decisions together in an effort to minimize overall total cost and maximize total profit by customer satisfaction [3]. Information sharing system coordination is necessary to support critical business decisions that may impact to price, quality, cost, availability, lead time, and profit share. Is study focuses on SC contractual coordination with Blockchain system-based proper lifecycle information sharing effort. Our model is based on the influence of product lifecycle information sharing effort and consumers’ price sensitivity. The constraints of the member’s choice of blockchain investment are given, and the influence of the Blockchain system cost coefficient and the price sensitivity coefficient on the decision-making behaviors and expected profits of the suppliers and retailers are simulated.
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