Innovative supply chain network design with two-step authentication and environmentally-friendly blockchain technology

Abstract

AbstractBlockchain Technology (BT) has the potential to revolutionize supply chain management by providing transparency, but it also poses significant environmental and security challenges. BT consumes energy and emits carbon gases, affecting its adoption in Supply Chains (SCs). The substantial energy demand of blockchain networks contributes to carbon emissions and sustainability risks. Moreover, for secure and reliable transactions, mutual authentication needs to be established to address security concerns raised by SC managers. This paper proposes a tri-objective optimization model for the simultaneous design of the SC-BT network, considering a two-step authentication process. The model considers transparency caused by BT members, emissions of BT, and costs related to BT and SC design. It also takes into account uncertainty conditions for participating BT members in the SC and the range of transparency, cost, and emission targets. To solve the model, a Branch and Efficiency (B&E) algorithm equipped with BT-related criteria is developed. The algorithm is implemented in a three-level SC and produces cost-effective and environmentally friendly outcomes. However, the adoption of BT in the SC can be costly and harmful to the environment under uncertain conditions. It is worth mentioning that implementing the proposed algorithm from our article in a three-level SC case study can result in a significant cost reduction of over 16% and an emission reduction of over 13%. The iterative nature of this algorithm plays a vital role in achieving these positive outcomes.