Mathematical Models and Concepts for Blockchain Network Design in Supply Chain

Supply chain network design deals with selecting the members and defining the transportation links among the selected members. Similar to supply chain network design, the blockchain network design problem deals with selecting nodes and links that should participate in the blockchain as a distributed ledger. Therefore, we utilized supply chain network theories and blockchain requirements to build our conceptual and mathematical models. This paper studies the blockchain network design problem using a three-echelon supply chain network. It is supposed that the supply chain network already exists therefore the blockchain network would be a sub-graph of the existing supply chain network. Two concepts as membership and purpose are presented and based on them, six different mathematical models are developed. Each mathematical model can be used according to the specific situation it represents. Moreover, to address the blockchain network requirements, the developed mathematical models should satisfy member coverage, transparency and risk constraints. The mathematical models are evaluated using numerous test problems and our findings approve the developed models can be used in implementing blockchain technology in supply chain operations