Blockchain-oriented dynamic modelling of smart contract design and execution in the supply chain

TLDR

Blockchain technology is reshaping supply chain management by enabling smart contracts to be executed as transactions on the ledger. The study develops and tests a new model for designing smart contracts in supply chains with multiple logistics service providers. The model represents physical operations as virtual operations within cyber service start and completion times, employs state‑control variables to update blockchain status, trigger automated feedback, detect disruptions, and launch re‑scheduling that integrates planning and adaptation in a dynamic control framework. The authors demonstrate that this problem can be formulated as a multi‑processor flexible flow‑shop scheduling problem.

Abstract

Recently, the applications of Blockchain technology have begun to revolutionise different aspects of supply chain (SC) management. Among others, Blockchain is a platform to execute the smart contracts in the SC as transactions. We develop and test a new model for smart contract design in the SC with multiple logistics service providers and show that this problem can be presented as a multi-processor flexible flow shop scheduling. A distinctive feature of our approach is that the execution of physical operations is modelled inside the start and completion of cyber information services. We name this modelling concept 'virtual operation'. The constructed model and the developed experimental environment constitute an event-driven dynamic approach to task and service composition when designing the smart contract. Our approach is also of value when considering the contract execution stage. The use of state control variables in our model allows for operations status updates in the Blockchain that in turn, feeds automated information feedbacks, disruption detection and control of contract execution. The latter launches the re-scheduling procedure, comprehensively combining planning and adaptation decisions within a unified methodological framework of dynamic control theory. The modelling complex developed can be used to design and control smart contracts in the SC.