Sustainable Supplier Selection and Order Allocation using Blockchain

This study explores the application of blockchain technology in supply chain management to optimize order allocation between a producer and multiple suppliers. The objective is to maximize profit by considering cost reduction, improved quality, and reduced pollution. A reward system based on higher-quality and less-polluting products influences the producer's ordering policy and demand. The study employs a genetic algorithm and finds that using blockchain positively impacts the producer's ordering policy, quality, and environmental considerations. Increased demand has minimal effect on pollution, and vehicles play a vital role in pollution reduction. Integrating blockchain offers benefits in decision-making for product quality, sustainability, and profitability.

Keywords:

Blockchain technology , Supply chain , Sustainable supplier selection