IDEAS home Printed from https://ideas.repec.org/a/spr/joinma/v31y2020i8d10.1007_s10845-020-01548-3.html
   My bibliography  Save this article

Pricing strategy and system performance in a cloud-based manufacturing system built on blockchain technology

Author

Listed:
  • Xiaobao Zhu

    (University of Cincinnati)

  • Jing Shi

    (University of Cincinnati)

  • Fengjie Xie

    (Xi’an University of Posts and Telecommunications)

  • Rouqi Song

    (University of Cincinnati)

Abstract

Blockchain technology has been enjoying rapid development in numerous areas where trust, safety, and global payments are deemed important. In this research, we introduce a framework that integrates blockchain technology with the emerging concept of cloud manufacturing. It has the potential to dramatically improve the feasibility and applicability of cloud manufacturing. Our focus is on the pricing strategies for service providers in bidding for jobs in such a system. A scenario is developed based on cloud additive manufacturing services. A game theoretic approach for pricing simulation is proposed in the research, and a fuzzy algorithm is employed in the pricing decision. Two pricing policies are considered: one is that the information of players is unknown to each other, and the other is that the information of players who are within a limit of Euclidean space is known to each other. The effects of system load and the weight coefficients in KNN recommendation algorithm are also studied. The results show that the pricing policy has significant effect on revenue generation for providers, and the increase of system load helps to grow revenue for providers only when the machine utilization is low and job waiting time is short. In addition, the system seems to be less sensitive to the change of KNN weights in terms of individual provider and system revenues.

Suggested Citation

  • Xiaobao Zhu & Jing Shi & Fengjie Xie & Rouqi Song, 2020. "Pricing strategy and system performance in a cloud-based manufacturing system built on blockchain technology," Journal of Intelligent Manufacturing, Springer, vol. 31(8), pages 1985-2002, December.
  • Handle: RePEc:spr:joinma:v:31:y:2020:i:8:d:10.1007_s10845-020-01548-3
    DOI: 10.1007/s10845-020-01548-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10845-020-01548-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10845-020-01548-3?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. Andrew Kusiak, 2020. "Service manufacturing = Process-as-a-Service + Manufacturing Operations-as-a-Service," Journal of Intelligent Manufacturing, Springer, vol. 31(1), pages 1-2, January.
    2. Mingtao Wu & Zhengyi Song & Young B. Moon, 2019. "Detecting cyber-physical attacks in CyberManufacturing systems with machine learning methods," Journal of Intelligent Manufacturing, Springer, vol. 30(3), pages 1111-1123, March.
    3. Kadambala, Dinesh K. & Subramanian, Nachiappan & Tiwari, Manoj K. & Abdulrahman, Muhammad & Liu, Chang, 2017. "Closed loop supply chain networks: Designs for energy and time value efficiency," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 382-393.
    4. Asma Talhi & Virginie Fortineau & Jean-Charles Huet & Samir Lamouri, 2019. "Ontology for cloud manufacturing based Product Lifecycle Management," Journal of Intelligent Manufacturing, Springer, vol. 30(5), pages 2171-2192, June.
    5. Toly Chen & Hsin-Chieh Wu, 2017. "A new cloud computing method for establishing asymmetric cycle time intervals in a wafer fabrication factory," Journal of Intelligent Manufacturing, Springer, vol. 28(5), pages 1095-1107, June.
    6. Kshetri, Nir, 2017. "Blockchain's roles in strengthening cybersecurity and protecting privacy," Telecommunications Policy, Elsevier, vol. 41(10), pages 1027-1038.
    7. Yuanfeng Cai & Dan Zhu, 2016. "Fraud detections for online businesses: a perspective from blockchain technology," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 2(1), pages 1-10, December.
    8. Jie Xu & Nan Liu, 2017. "Erratum to: Research on closed loop supply chain with reference price effect," Journal of Intelligent Manufacturing, Springer, vol. 28(1), pages 65-67, January.
    9. Yu-yan Wang & Yuan-yuan Zhang, 2017. "Remanufacturer’s production strategy with capital constraint and differentiated demand," Journal of Intelligent Manufacturing, Springer, vol. 28(4), pages 869-882, April.
    10. Minghai Yuan & Hongyan Yu & Jinting Huang & Aimin Ji, 2019. "Reconfigurable assembly line balancing for cloud manufacturing," Journal of Intelligent Manufacturing, Springer, vol. 30(6), pages 2391-2405, August.
    11. Jie Xu & Nan Liu, 2017. "Research on closed loop supply chain with reference price effect," Journal of Intelligent Manufacturing, Springer, vol. 28(1), pages 51-64, January.
    12. Juha Puttonen & Andrei Lobov & Maria A. Cavia Soto & José L. Martinez Lastra, 2019. "Cloud computing as a facilitator for web service composition in factory automation," Journal of Intelligent Manufacturing, Springer, vol. 30(2), pages 687-700, February.
    13. Yuqian Lu & Hongqiang Wang & Xun Xu, 2019. "ManuService ontology: a product data model for service-oriented business interactions in a cloud manufacturing environment," Journal of Intelligent Manufacturing, Springer, vol. 30(1), pages 317-334, January.
    14. Xifan Yao & Jiajun Zhou & Yingzi Lin & Yun Li & Hongnian Yu & Ying Liu, 2019. "Smart manufacturing based on cyber-physical systems and beyond," Journal of Intelligent Manufacturing, Springer, vol. 30(8), pages 2805-2817, December.
    15. Minjae Yoo & Yoojae Won, 2018. "A Study on the Transparent Price Tracing System in Supply Chain Management Based on Blockchain," Sustainability, MDPI, vol. 10(11), pages 1-15, November.
    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. Reza Vatankhah Barenji, 2022. "A blockchain technology based trust system for cloud manufacturing," Journal of Intelligent Manufacturing, Springer, vol. 33(5), pages 1451-1465, June.

    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. Shiyong Yin & Jinsong Bao & Jie Zhang & Jie Li & Junliang Wang & Xiaodi Huang, 2020. "Real-time task processing for spinning cyber-physical production systems based on edge computing," Journal of Intelligent Manufacturing, Springer, vol. 31(8), pages 2069-2087, December.
    2. Sadjady Naeeni, Hannan & Sabbaghi, Navid, 2022. "Sustainable supply chain network design: A case of the glass manufacturer in Asia," International Journal of Production Economics, Elsevier, vol. 248(C).
    3. Ehsan Shekarian & Simme Douwe Flapper, 2021. "Analyzing the Structure of Closed-Loop Supply Chains: A Game Theory Perspective," Sustainability, MDPI, vol. 13(3), pages 1-32, January.
    4. Luttiely Santos Oliveira & Ricardo Luiz Machado, 2021. "Application of optimization methods in the closed-loop supply chain: a literature review," Journal of Combinatorial Optimization, Springer, vol. 41(2), pages 357-400, February.
    5. Yixin Zhang & Xifu Wang, 2021. "Optimal pricing and sourcing strategies in the presence of supply uncertainty and competition," Journal of Intelligent Manufacturing, Springer, vol. 32(1), pages 61-76, January.
    6. Dutta, Pankaj & Choi, Tsan-Ming & Somani, Surabhi & Butala, Richa, 2020. "Blockchain technology in supply chain operations: Applications, challenges and research opportunities," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    7. Zhichao Zhang & Qing Zhang & Zhi Liu & Xiaoxue Zheng, 2018. "Static and Dynamic Pricing Strategies in a Closed-Loop Supply Chain with Reference Quality Effects," Sustainability, MDPI, vol. 10(1), pages 1-31, January.
    8. Chirantan Mondal & Bibhas C. Giri & Sanjib Biswas, 2022. "Integrating Corporate Social Responsibility in a closed-loop supply chain under government subsidy and used products collection strategies," Flexible Services and Manufacturing Journal, Springer, vol. 34(1), pages 65-100, March.
    9. Yande Gong & Mengze Chen & Yuliang Zhuang, 2019. "Decision-Making and Performance Analysis of Closed-Loop Supply Chain under Different Recycling Modes and Channel Power Structures," Sustainability, MDPI, vol. 11(22), pages 1-26, November.
    10. Xuemei Zhang & Jian Cao & Yang Zhao & Jiansha Lu, 2022. "Fairness Concern in Remanufacturing Supply Chain—A Comparative Analysis of Channel Members’ Fairness Preferences," Sustainability, MDPI, vol. 14(7), pages 1-23, March.
    11. Lingyu Gao & Xiaoli Wang, 2019. "Healthcare Supply Chain Network Coordination Through Medical Insurance Strategies with Reference Price Effect," IJERPH, MDPI, vol. 16(18), pages 1-23, September.
    12. Dulani Jayasuriya Daluwathumullagamage & Alexandra Sims, 2021. "Fantastic Beasts: Blockchain Based Banking," JRFM, MDPI, vol. 14(4), pages 1-43, April.
    13. Jacob Lohmer & Elias Ribeiro da Silva & Rainer Lasch, 2022. "Blockchain Technology in Operations & Supply Chain Management: A Content Analysis," Sustainability, MDPI, vol. 14(10), pages 1-88, May.
    14. William Derigent & Olivier Cardin & Damien Trentesaux, 2021. "Industry 4.0: contributions of holonic manufacturing control architectures and future challenges," Journal of Intelligent Manufacturing, Springer, vol. 32(7), pages 1797-1818, October.
    15. Hadi Sahebi & Shayan Ranjbar & Ashkan Teymouri, 2022. "Investigating different reverse channels in a closed-loop supply chain: a power perspective," Operational Research, Springer, vol. 22(3), pages 1939-1985, July.
    16. Juan José Montero Jiménez & Rob Vingerhoeds & Bernard Grabot & Sébastien Schwartz, 2023. "An ontology model for maintenance strategy selection and assessment," Journal of Intelligent Manufacturing, Springer, vol. 34(3), pages 1369-1387, March.
    17. Min Huang & Pengxing Yi & TieLin Shi, 2017. "Triple Recycling Channel Strategies for Remanufacturing of Construction Machinery in a Retailer-Dominated Closed-Loop Supply Chain," Sustainability, MDPI, vol. 9(12), pages 1-19, December.
    18. Zhang, Jie & Chiang, Wei-yu Kevin, 2020. "Durable goods pricing with reference price effects," Omega, Elsevier, vol. 91(C).
    19. Reza Vatankhah Barenji, 2022. "A blockchain technology based trust system for cloud manufacturing," Journal of Intelligent Manufacturing, Springer, vol. 33(5), pages 1451-1465, June.
    20. Jiatong Yu & Jiajue Wang & Taesoo Moon, 2022. "Influence of Digital Transformation Capability on Operational Performance," Sustainability, MDPI, vol. 14(13), pages 1-20, June.

    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:spr:joinma:v:31:y:2020:i:8:d:10.1007_s10845-020-01548-3. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.