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Research on Decision Analysis with CVaR for Supply Chain Finance Based on Blockchain Technology

Author

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  • Shujian Ma

    (School of Economics & Management, Nanjing Tech University, Nanjing 211816, China
    Institute of Block Chain and Complex Systems, Nanjing Tech University, Nanjing 211816, China
    School of Mathematical and Physical Sciences, Nanjing Tech University, Nanjing 211816, China)

  • Jilong Cai

    (Institute of Block Chain and Complex Systems, Nanjing Tech University, Nanjing 211816, China
    School of Mathematical and Physical Sciences, Nanjing Tech University, Nanjing 211816, China)

  • Gang Wang

    (School of Mathematical and Physical Sciences, Nanjing Tech University, Nanjing 211816, China)

  • Xiangxiang Ge

    (Institute of Block Chain and Complex Systems, Nanjing Tech University, Nanjing 211816, China
    School of Mathematical and Physical Sciences, Nanjing Tech University, Nanjing 211816, China)

  • Ying Teng

    (School of Economics & Management, Nanjing Tech University, Nanjing 211816, China
    Institute of Block Chain and Complex Systems, Nanjing Tech University, Nanjing 211816, China)

  • Hua Jiang

    (School of Mathematical and Physical Sciences, Nanjing Tech University, Nanjing 211816, China)

Abstract

The application of blockchain has become a trend in the development of supply chain finance. Aiming to bridge the gap in the existing literature, this paper investigates a supply chain finance system based on blockchain technology which contains a manufacturer, a retailer and a financial institution and incorporates blockchain costs into the model. Firstly, this paper establishes a supply chain finance model based on blockchain technology and it presents a comparison with the process employed under the traditional model. Secondly, this paper establishes the revenue mathematical model of supply chain finance based on blockchain technology. Thirdly, the optimal decisions of each participant under centralized and decentralized decision-making are proved and obtained, respectively, and the influencing factors of the optimal decisions are analyzed. Finally, the conclusions are verified via simulations. This study finds that, when blockchain is used, the benefits of each participant in the chain are increased. In addition, centralized decision-making, which is more optimal in the traditional model, is also enhanced under blockchain. This paper demonstrates the superiority of blockchain-enabled supply chain finance in terms of model and revenue. This provides some suggestions for companies in the supply chain with regard to solving the problem of financing difficulties.

Suggested Citation

  • Shujian Ma & Jilong Cai & Gang Wang & Xiangxiang Ge & Ying Teng & Hua Jiang, 2024. "Research on Decision Analysis with CVaR for Supply Chain Finance Based on Blockchain Technology," Mathematics, MDPI, vol. 12(3), pages 1-25, January.
    • Handle: RePEc:gam:jmathe:v:12:y:2024:i:3:p:438-:d:1329162
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    References listed on IDEAS

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