Hakan Yildiz published in research journal
Mike Ilitch School of Business Associate Professor of Global Supply Chain Management Hakan Yildiz authored an article titled, “The value of Blockchain technology implementation in international trades under demand volatility risk.” The article was published in the International Journal of Production Research (IJPR). The article discusses the implementation of Blockchain technology in international trades.
Published since 1961, IJPR is a leading journal reporting manufacturing, production and operations management research. IJPR publications include papers on innovation management, design of products, manufacturing processes, production and logistics systems.
Yildiz’s co-authors are from Kansas State University and Michigan State University.
This study introduces analytical models that consider the implementation of Blockchain technology in international trades, to test whether the technology improves an exporting firm’s performance under demand volatility risk. The simulation and numerical analysis results show that the reduced lead time and decreased ocean transport cost under Blockchain enable the exporting firm to increase shipment via the ocean, which reduces the quantity shipped via air. In addition, the reduced total unit cost for ocean and air transports leads the firm to effectively reserve spaces for air transport, which implies that Blockchain makes the firm more proactive while preparing a backup plan to more effectively and efficiently react to demand realization. We conclude that Blockchain can be beneficial for firms facing considerable demand volatility in international trades, and that such effectiveness could be more effective for firms that prioritize minimizing lost sales (by efficiently utilizing ocean and effectively exploiting air) over minimizing excess quantity shipped by ocean.