Product Extended Warranty Service Supply Chain Decision-Making Based on Blockchain Technology

Abstract

Consumer distrust seriously restricts the development of the extended warranty service industry, and investing in blockchain technology can enhance consumer trust and bring trust utility to enterprises, while also increasing the huge cost of blockchain applications. This paper analyzes the changes in the equilibrium solution of the supply chain before and after the technology investment, explore the sufficient conditions for the implementation of blockchain in the extended warranty service supply chain under the condition of technical and economic value objectives, and finally analyze the results. Studies have shown that in the absence of blockchain implementation, the weakening factor of extended warranty services will negatively affect the equilibrium solution of the supply chain. When the fixed cost of implementing a blockchain is greater than a certain limit, the manufacturer's profit after implementing the blockchain is less than the profit before the implementation of the blockchain. When considering trust utility, supply chain members are more relaxed in implementing blockchain than when utility is not considered, and retailers are the most relaxed in implementing blockchain. There is an optimal poor level of consumer trust, making the fullest conditions for manufacturers to invest in blockchain technology under the goal of technical value.