IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v71y2023ics0969698922002442.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698922002442
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2022.103151?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Min, Hokey, 2019. "Blockchain technology for enhancing supply chain resilience," Business Horizons, Elsevier, vol. 62(1), pages 35-45.
    2. Jayashankar M. Swaminathan & Sridhar R. Tayur, 2003. "Models for Supply Chains in E-Business," Management Science, INFORMS, vol. 49(10), pages 1387-1406, October.
    3. Müller-Seitz, Gordon & Dautzenberg, Kirsti & Creusen, Utho & Stromereder, Christine, 2009. "Customer acceptance of RFID technology: Evidence from the German electronic retail sector," Journal of Retailing and Consumer Services, Elsevier, vol. 16(1), pages 31-39.
    4. Nativi, Juan Jose & Lee, Seokcheon, 2012. "Impact of RFID information-sharing strategies on a decentralized supply chain with reverse logistics operations," International Journal of Production Economics, Elsevier, vol. 136(2), pages 366-377.
    5. Ilkyeong Moon & Won Young Yun & Biswajit Sarkar, 2022. "Effects of variable setup cost, reliability, and production costs under controlled carbon emissions in a reliable production system," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 16(4), pages 371-397.
    6. Taleizadeh, Ata Allah & Tafakkori, Keivan & Thaichon, Park, 2021. "Resilience toward supply disruptions: A stochastic inventory control model with partial backordering under the base stock policy," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    7. Kristoffer Francisco & David Swanson, 2018. "The Supply Chain Has No Clothes: Technology Adoption of Blockchain for Supply Chain Transparency," Logistics, MDPI, vol. 2(1), pages 1-13, January.
    8. Giannoccaro, Ilaria & Pontrandolfo, Pierpaolo, 2002. "Inventory management in supply chains: a reinforcement learning approach," International Journal of Production Economics, Elsevier, vol. 78(2), pages 153-161, July.
    9. Guodong Yu & Fei Li & Yu Yang, 2017. "Robust supply chain networks design and ambiguous risk preferences," International Journal of Production Research, Taylor & Francis Journals, vol. 55(4), pages 1168-1182, February.
    10. Ritu Motla & Ashok Kumar & S. R. Singh & Neha Saxena, 2021. "A fuzzy integrated inventory system with end of life treatment: a possibility in sports industry," OPSEARCH, Springer;Operational Research Society of India, vol. 58(4), pages 869-888, December.
    11. Oryani, Bahareh & Moridian, Ali & Sarkar, Biswajit & Rezania, Shahabaldin & Kamyab, Hesam & Khan, Muhammad Kamran, 2022. "Assessing the financial rеsоurсе curse hypothesis in Iran: Thе nоvеl dynаmiс АRDL approach," Resources Policy, Elsevier, vol. 78(C).
    12. Syam, Siddhartha S. & Bhatnagar, Amit, 2015. "A decision support model for determining the level of product variety with marketing and supply chain considerations," Journal of Retailing and Consumer Services, Elsevier, vol. 25(C), pages 12-21.
    13. V. K. Manupati & Tobias Schoenherr & M. Ramkumar & Stephan M. Wagner & Sai Krishna Pabba & R. Inder Raj Singh, 2020. "A blockchain-based approach for a multi-echelon sustainable supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 58(7), pages 2222-2241, April.
    14. Kurata, Hisashi, 2019. "Is the information of customer types and preferences to personal selling worth the investment in innovative technology? A modeling approach," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 371-379.
    15. Moiseeva, Anastasia & Timmermans, Harry, 2010. "Imputing relevant information from multi-day GPS tracers for retail planning and management using data fusion and context-sensitive learning," Journal of Retailing and Consumer Services, Elsevier, vol. 17(3), pages 189-199.
    16. Taleizadeh, Ata Allah & Shokr, Iman & Konstantaras, Ioannis & VafaeiNejad, Mahyar, 2020. "Stock replenishment policies for a vendor-managed inventory in a retailing system," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    17. Gérard P. Cachon & Marshall Fisher, 2000. "Supply Chain Inventory Management and the Value of Shared Information," Management Science, INFORMS, vol. 46(8), pages 1032-1048, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Hua & Ma, Ruili & He, Guangyao & Lamrabet, Abdesslam & Fu, Shaoling, 2023. "The impact of blockchain technology on the online purchase behavior of green agricultural products," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    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).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sharfuddin Ahmed Khan & Muhammad Shujaat Mubarik & Simonov Kusi‐Sarpong & Himanshu Gupta & Syed Imran Zaman & Mobashar Mubarik, 2022. "Blockchain technologies as enablers of supply chain mapping for sustainable supply chains," Business Strategy and the Environment, Wiley Blackwell, vol. 31(8), pages 3742-3756, December.
    2. 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).
    3. Vincenzo Varriale & Antonello Cammarano & Francesca Michelino & Mauro Caputo, 2021. "Sustainable Supply Chains with Blockchain, IoT and RFID: A Simulation on Order Management," Sustainability, MDPI, vol. 13(11), pages 1-23, June.
    4. Mahmoona Khalil & Kausar Fiaz Khawaja & Muddassar Sarfraz, 2022. "The adoption of blockchain technology in the financial sector during the era of fourth industrial revolution: a moderated mediated model," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(4), pages 2435-2452, August.
    5. Sachin Kumar Mangla & Yiğit Kazançoğlu & Abdullah Yıldızbaşı & Cihat Öztürk & Ahmet Çalık, 2022. "A conceptual framework for blockchain‐based sustainable supply chain and evaluating implementation barriers: A case of the tea supply chain," Business Strategy and the Environment, Wiley Blackwell, vol. 31(8), pages 3693-3716, December.
    6. Juan Pedro Sepúlveda-Rojas & Rodrigo Ternero, 2020. "Analysis of the Value of Information and Coordination in a Dyadic Closed Loop Supply Chain," Sustainability, MDPI, vol. 12(20), pages 1-18, October.
    7. Caridi, Maria & Crippa, Luca & Perego, Alessandro & Sianesi, Andrea & Tumino, Angela, 2010. "Do virtuality and complexity affect supply chain visibility?," International Journal of Production Economics, Elsevier, vol. 127(2), pages 372-383, October.
    8. Prajogo, Daniel & Olhager, Jan, 2012. "Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration," International Journal of Production Economics, Elsevier, vol. 135(1), pages 514-522.
    9. Hau L. Lee & V. Padmanabhan & Seungjin Whang, 2004. "Comments on "Information Distortion in a Supply Chain: The Bullwhip Effect"," Management Science, INFORMS, vol. 50(12_supple), pages 1887-1893, December.
    10. Manu Sharma & Sudhanshu Joshi & Sunil Luthra & Anil Kumar, 2022. "Managing disruptions and risks amidst COVID-19 outbreaks: role of blockchain technology in developing resilient food supply chains," Operations Management Research, Springer, vol. 15(1), pages 268-281, June.
    11. Li, Xiuhui & Wang, Qinan, 2007. "Coordination mechanisms of supply chain systems," European Journal of Operational Research, Elsevier, vol. 179(1), pages 1-16, May.
    12. Clarissa Amico & Roberto Cigolini, 2024. "Improving port supply chain through blockchain-based bills of lading: a quantitative approach and a case study," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 26(1), pages 74-104, March.
    13. Hu, Hui & Xu, Jiajun & Liu, Mengqi & Lim, Ming K., 2023. "Vaccine supply chain management: An intelligent system utilizing blockchain, IoT and machine learning," Journal of Business Research, Elsevier, vol. 156(C).
    14. Elnaz Irannezhad, 2020. "The Architectural Design Requirements of a Blockchain-Based Port Community System," Logistics, MDPI, vol. 4(4), pages 1-31, November.
    15. Teck Ming Tan & Jari Salo, 2023. "Ethical Marketing in the Blockchain-Based Sharing Economy: Theoretical Integration and Guiding Insights," Journal of Business Ethics, Springer, vol. 183(4), pages 1113-1140, April.
    16. Arshinder & Kanda, Arun & Deshmukh, S.G., 2008. "Supply chain coordination: Perspectives, empirical studies and research directions," International Journal of Production Economics, Elsevier, vol. 115(2), pages 316-335, October.
    17. Abderahman Rejeb & Karim Rejeb & Steve Simske & Horst Treiblmaier, 2021. "Blockchain Technologies in Logistics and Supply Chain Management: A Bibliometric Review," Logistics, MDPI, vol. 5(4), pages 1-28, October.
    18. Ciancimino, Elena & Cannella, Salvatore & Bruccoleri, Manfredi & Framinan, Jose M., 2012. "On the Bullwhip Avoidance Phase: The Synchronised Supply Chain," European Journal of Operational Research, Elsevier, vol. 221(1), pages 49-63.
    19. Venkataiah Chittipaka & Satish Kumar & Uthayasankar Sivarajah & Jana Lay-Hwa Bowden & Manish Mohan Baral, 2023. "Blockchain Technology for Supply Chains operating in emerging markets: an empirical examination of technology-organization-environment (TOE) framework," Annals of Operations Research, Springer, vol. 327(1), pages 465-492, August.
    20. Kar, Sumi & Basu, Kajla & Sarkar, Biswajit, 2023. "Advertisement policy for dual-channel within emissions-controlled flexible production system," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:71:y:2023:i:c:s0969698922002442. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.