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How does the retailing industry decide the best replenishment strategy by utilizing technological support through blockchain?

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  • Saxena, Neha
  • Sarkar, Biswajit

Abstract

Practitioners face two significant issues: product inaccuracy and transparency in supply chain management. Blockchain is a highly secure and trustworthy means of storing data. Radio frequency identification incorporation is essential if reliability is at a low level. Incorporating radio frequency identification can improve supply chain management in terms of product's visibility for the best replenishment strategy. A production and replenishment coordination via mathematical modeling is visualized through a three-echelon supply chain with a non-reliable production process, and the retailer deals with misplacement issues. The manufacturer handles the inventory flowing reversely and is responsible for proper end-of-life treatment, either repairing or remanufacturing. Repairs are sold in bulk on the secondary market, and remanufactured items are used to prevent retailers' shortages. In this model, radio frequency identification technology on the physical surface is combined with a blockchain on the cyber surface, containing all the information about the product, including its location and attributes. A comparative study is provided for the traditional supply chain with misplacement versus a blockchain-based supply chain with radio frequency identification. An analytical approach is used to arrive at the optimum policy for the practitioners, and numerical analysis illustrates the problem. Numerical experiments indicate that the technology is highly profitable for supply chain management. Radio frequency identification technology can increase profit by up to 61%. After discrepancy, holding cost is the second most sensitive parameter for the profit function. If the holding cost is higher, profit can be increased by 40% using radio frequency identification and blockchain. The negative effect of misplacement is reduced with an increasing demand rate, but the reduction rate is very slow. The choice of not adopting radio frequency identification can only be successful if demand is so high that it can reduce the effect of misplacement.

Suggested Citation

  • Saxena, Neha & Sarkar, Biswajit, 2023. "How does the retailing industry decide the best replenishment strategy by utilizing technological support through blockchain?," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:joreco:v:71:y:2023:i:c:s0969698922002442
    DOI: 10.1016/j.jretconser.2022.103151
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    References listed on IDEAS

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    2. Datta, Alotosh & Sarkar, Biswajit & Dey, Bikash Koli & Sangal, Isha & Yang, Liu & Fan, Shu-Kai S. & Sardar, Suman Kalyan & Thangavelu, Lakshmi, 2024. "The impact of sales effort on a dual-channel dynamical system under a price-sensitive stochastic demand," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    3. Taheri, Babak & Yousaf, Anish & Gannon, Martin & Mishra, Abhishek, 2024. "e-commerce website customer engagement: Delineating the role of UTAUT, vividness, and compulsion," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    4. Hu, Jianhao & Zhang, Xuan & Chen, Hanyu(Yuki) & Li, Wanyue, 2024. "When it rains, it pours? The impact of weather on customer returns in the brick-and-mortar retail store," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    5. Dwivedi, Yogesh K. & Balakrishnan, Janarthanan & Das, Ronnie & Dutot, Vincent, 2023. "Resistance to innovation: A dynamic capability model based enquiry into retailers’ resistance to blockchain adaptation," Journal of Business Research, Elsevier, vol. 157(C).
    6. Rekha Guchhait & Biswajit Sarkar, 2023. "Increasing Growth of Renewable Energy: A State of Art," Energies, MDPI, vol. 16(6), pages 1-29, March.
    7. Sarkar, Biswajit & Kar, Sumi & Basu, Kajla & Seo, Yong Won, 2023. "Is the online-offline buy-online-pickup-in-store retail strategy best among other product delivery strategies under variable lead time?," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    8. Sarkar, Biswajit & Dey, Bikash Koli, 2023. "Is online-to-offline customer care support essential for consumer service?," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    9. Davoudi, Zahra & Seifbarghy, Mehdi & Sarkar, Mitali & Sarkar, Biswajit, 2023. "Effect of bargaining on pricing and retailing under a green supply chain management," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    10. Sarkar, Mitali & Dey, Bikash Koli & Ganguly, Baishakhi & Saxena, Neha & Yadav, Dharmendra & Sarkar, Biswajit, 2023. "The impact of information sharing and bullwhip effects on improving consumer services in dual-channel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    11. Amankou, Kunomboua Anicet Cyrille & Guchhait, Rekha & Sarkar, Biswajit & Dem, Himani, 2024. "Product-specified dual-channel retail management with significant consumer service," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).

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