Integration of blockchain-enabled closed-loop supply chain and robust product portfolio design

Abstract

Blockchain technology is one of the latest financial concepts influencing international trades, which contributes to speeding the supply chains by managing faster and more accurate financial transactions. Moreover, the product portfolio is highly effective on the financial flow of the supply chain. Accordingly, in this research, a comprehensive framework is proposed to design a blockchain-enabled closed-loop supply chain (BCSC), considering the role of the product portfolio. First, a mathematical model for robust product portfolio design is proposed. Next, a closed-loop supply chain network is designed where the financial flow via blockchain is of concern. To optimize this supply chain, the change in equity, as well as satisfaction from the blockchain network, is maximized. An exact solution method using GAMS software is applied to optimize the proposed mathematical model. The results obtained by implementation and analysis of this proposed framework indicate that by designing a product portfolio based on a robust model, BCSC would achieve the ideal value for its financial indexes, the change in equity in specific. Comparison of this newly proposed framework with the integrated portfolio-supply chain model reveals a 0.33% average error and a 1.5% reduction in lost revenue. It is concluded that this proposed framework assists supply chain managers in reducing their inaccurate decisions in both the physical and financial flow considerably.