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The Application of Blockchain-Based Life Cycle Assessment on an Industrial Supply Chain

Author

Listed:
  • Xuda Lin

    (Division of Environmental and Ecological Engineering, Purdue University, West Lafayette, IN 47907, USA
    Department of Statistics, Purdue University, West Lafayette, IN 47907, USA)

  • Xing Li

    (School of Civil Engineering, Purdue University, West Lafayette, IN 47907, USA)

  • Sameer Kulkarni

    (School of Mechanical Engineering, Purdue University, West Lafayette, IN 47907, USA)

  • Fu Zhao

    (Division of Environmental and Ecological Engineering, Purdue University, West Lafayette, IN 47907, USA
    School of Mechanical Engineering, Purdue University, West Lafayette, IN 47907, USA)

Abstract

Life cycle assessment (LCA) is a widely recognized tool used to evaluate the environmental impacts of a product or process, based on the environmental inventory database and bills of material. Data quality is one of the most significant factors affecting the analysis results. However, currently, most datasets in inventory databases are generic, i.e., they may represent the material and energy flow of a process at a market average, instead of a specific process used by a manufacturer. As a result, stockholders are unable to track their supply chain to find out the actual environmental impact from each supplier and to compare the environmental performance of alternative options. In this paper, we developed a new framework, i.e., blockchain-based LCA (BC-LCA), where blockchain technology is adapted to secure and transmit inventory data from upstream suppliers to downstream manufacturers. With BC-LCA, more specific data can be acquired along the supply chain in a real-time manner. Moreover, the availability, accuracy, privacy, and automatic update of inventory data can be improved. A case study is provided based on an industrial supply chain to demonstrate the utilization of BC-LCA.

Suggested Citation

  • Xuda Lin & Xing Li & Sameer Kulkarni & Fu Zhao, 2021. "The Application of Blockchain-Based Life Cycle Assessment on an Industrial Supply Chain," Sustainability, MDPI, vol. 13(23), pages 1-15, December.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:23:p:13332-:d:693202
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    References listed on IDEAS

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    1. Sean P. Willems, 2008. "Data Set--Real-World Multiechelon Supply Chains Used for Inventory Optimization," Manufacturing & Service Operations Management, INFORMS, vol. 10(1), pages 19-23, February.
    2. Sara Saberi & Mahtab Kouhizadeh & Joseph Sarkis & Lejia Shen, 2019. "Blockchain technology and its relationships to sustainable supply chain management," International Journal of Production Research, Taylor & Francis Journals, vol. 57(7), pages 2117-2135, April.
    3. Min, Hokey, 2019. "Blockchain technology for enhancing supply chain resilience," Business Horizons, Elsevier, vol. 62(1), pages 35-45.
    4. David Teh & Tehmina Khan & Brian Corbitt & Chin Eang Ong, 2020. "Sustainability strategy and blockchain-enabled life cycle assessment: a focus on materials industry," Environment Systems and Decisions, Springer, vol. 40(4), pages 605-622, December.
    5. Haiyang Fang & Dali Jiang & Tinghong Yang & Ling Fang & Jian Yang & Wu Li & Jing Zhao, 2018. "Network evolution model for supply chain with manufactures as the core," PLOS ONE, Public Library of Science, vol. 13(1), pages 1-28, January.
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