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Digital Supply Chain through Dynamic Inventory and Smart Contracts

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  • Pietro De Giovanni

    (Department of Business and Management, LUISS University, 00197 Rome, Italy)

Abstract

This paper develops a digital supply chain game, modeling marketing and operation interactions between members. The main novelty of the paper concerns a comparison between static and dynamic solutions of the supply chain game achieved when moving from traditional to digital platforms. Therefore, this study proposes centralized and decentralized versions of the game, comparing their solutions under static and dynamic settings. Moreover, it investigates the decentralized supply chain by evaluating two smart contracts: Revenue sharing and wholesale price contracts. In both cases, the firms use an artificial intelligence system to determine the optimal contract parameters. Numerical and qualitative analyses are used for comparing configurations (centralized, decentralized), settings (static, dynamic), and contract schemes (revenue sharing contract, wholesale price contract). The findings identify the conditions under which smart revenue sharing mechanisms are worth applying.

Suggested Citation

  • Pietro De Giovanni, 2019. "Digital Supply Chain through Dynamic Inventory and Smart Contracts," Mathematics, MDPI, vol. 7(12), pages 1-25, December.
    • Handle: RePEc:gam:jmathe:v:7:y:2019:i:12:p:1235-:d:297592
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    References listed on IDEAS

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    Cited by:

    1. De Giovanni, Pietro & Cariola, Alfio, 2021. "Process innovation through industry 4.0 technologies, lean practices and green supply chains," Research in Transportation Economics, Elsevier, vol. 90(C).
    2. Biswas, Debajyoti & Jalali, Hamed & Ansaripoor, Amir H. & De Giovanni, Pietro, 2023. "Traceability vs. sustainability in supply chains: The implications of blockchain," European Journal of Operational Research, Elsevier, vol. 305(1), pages 128-147.
    3. Farajpour, Farnoush & Hassanzadeh, Alireza & Elahi, Shaban & Ghazanfari, Mehdi, 2022. "Digital supply chain blueprint via a systematic literature review," Technological Forecasting and Social Change, Elsevier, vol. 184(C).

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