An inventory model for deteriorating items with blockchain process: how will it transform inventory management system

This paper presents a structured mathematical model based on blockchain technology that enhances supply chain management by ensuring end-to-end information availability for suppliers, retailers, and entrepreneurs. The proposed study examines the impact of blockchain investment on the per-unit holding cost of deteriorating items, discussing three different scenarios for extended profit analysis: (1) the implementation of blockchain technology, (2) the absence of blockchain technology, and (3) the unavailability of immediate and additional stock for customers. A mathematical model is proposed that addresses ramp-type demand, which varies based on price and time, to create a more realistic inventory scenario that incorporates the blockchain effect simultaneously. Previously discussed cases allow retailers, manufacturers, and suppliers to increase their profits while maintaining an uninterrupted supply chain for perishable items in the market. Additionally, an optimal solution can be explored by comparing several cases. A sensitivity analysis will identify the most critical variables and their behavior, which will help evaluate their impacts on various factors that are essential for overcoming specific market risks due to changes in demand parameters. This study aims to improve managerial decisions for industries, suppliers, retailers, and entrepreneurs. Consequently, the proposed mathematical model facilitates more effective supply chain and inventory management.