Journal of Quality Engineering and Management

Abstract Purpose: This paper examines how blockchain technology can improve reliability and operational performance in hospital pharmaceutical supply chains with a focus on inventory variability and responsiveness to demand.
Methodology: A system dynamics model of a three-echelon chain (manufacturer–distributor–hospital) is developed. Two information-sharing scenarios are compared: a traditional setting with centralized, delayed information and a blockchain setting with real-time, decentralized data sharing.
Findings: Results indicate that blockchain adoption enhances behavioral stability, reduces the persistence of hospital backlog, and shortens mean delivery lead time. Specifically, mean lead time decreases by ~15.1% and mean hospital backlog decreases by ~15.8% (both statistically significant). However, the difference in mean hospital inventory is not significant; stability improves, with inventory SD decreasing by ~21.5% and lead-time SD decreasing by ~10%. Taken together, these effects strengthen service reliability and overall supply-chain performance.
Originality/Value: By integrating blockchain-based decentralized data sharing with system dynamics modeling in the hospital pharmaceutical context, this study provides quantitative evidence of how transparency supports quality-oriented supply chain management.