scholarly journals Low Carbon Distribution Channel Coordination with a Capital-Constrained Retailer

2018 ◽  
Vol 2018 ◽  
pp. 1-13 ◽  
Author(s):  
Jun Wang ◽  
Xianxue Cheng ◽  
Shuhua Zhang
Keyword(s):  
Supply Chain ◽  
Distribution Channel ◽  
Carbon Price ◽  
Green Technology ◽  
Low Carbon ◽  
Order Quantity ◽  
Carbon Distribution ◽  
Supply Chain Efficiency ◽  
Reduce Emissions ◽  
The Government

Capital constraints exist in many supply chains. We examine a low carbon distribution channel that consists of a manufacturer and a retailer, in which the retailer is constrained by capital. The retailer can be financed by bank credit from a competitive bank market. A Stackelberg model is developed to analyze the integrated decision-making process of ordering, financing, and emission reduction. By comparing the decentralized and centralized channels, we obtain that the manufacturer’s green technology investment should be linearly proportional to the retailer’s order quantity in both channels. Thus, a large order quantity leads to increased efforts to reduce emissions. Results further show that the centralized channel in some cases has fewer emissions and can generate more profits for the whole supply chain compared with the decentralized channel. We therefore propose a revenue sharing contract with a function form to coordinate the distribution channel. When the government allocates appropriate quotas to the supply chain, high carbon price can benefit the environment and supply chain efficiency.

Low Carbon Footprint

2015 ◽  
pp. 324-347 ◽  
Author(s):  
Muhammad Shabir Shaharudin ◽  
Yudi Fernando
Keyword(s):  
Supply Chain ◽  
Carbon Emissions ◽  
Manufacturing Industry ◽  
Green Building ◽  
Green Technology ◽  
Low Carbon ◽  
Supply Chain Networks ◽  
Government Organizations ◽  
Carbon Supply ◽  
The Government

Malaysia has committed to a 40% reduction of carbon emissions by 2020. The government has encouraged industry, society, and non-government organizations to work together to achieve this objective. The government has provided incentives through several energy programmes such as energy efficiency, renewable energy, green technology, and green building. One key area that has been targeted is logistics and supply chain, which has been contributing to high carbon emissions in manufacturing industries. Scholars and practitioners have only recently begun to pay attention to creating a low carbon supply chain. Furthermore, Small Medium Enterprises (SMEs) have faced several challenges in adopting low carbon activities. SMEs are unable to take the advantage of energy initiatives because of a lack of knowledge, a shortage of funds, and inadequate facilities. Almost 90% of firms are in the service industry working with large manufacturing firms and some SMEs working in manufacturing industry are working closely with their supply chain networks; achieving low carbon targets is hampered by the readiness of the manufacturing itself. This chapter discusses the challenges and future agenda of creating low carbon supply chains in manufacturing in Malaysia. Possible solutions are provided at the end of the chapter.

Studying the Complexity of Multichannel Supply Chain with Different Power Structures Under Carbon Subsidy Policy

2021 ◽  
Vol 31 (11) ◽  
pp. 2150166
Author(s):  
Junhai Ma ◽  
Yi Tian ◽  
Liu Chengjin
Keyword(s):  
Supply Chain ◽  
Low Carbon ◽  
Order Quantity ◽  
Power Structures ◽  
Bifurcation And Chaos ◽  
Supply Chain System ◽  
Subsidy Policy ◽  
Subsidy Rate ◽  
Dual Channel ◽  
The Government

The game characteristics and equilibrium strategies of a triple-channel supply chain under the carbon subsidy policy are studied in this work with three different game power structures. There are simultaneous decision-making, manufacturer-dominated market and retailer-dominated market. The decision mechanism for order quantity of manufacturer and dual-channel retailer, is discussed. Meanwhile, their complex dynamic characteristics are studied. It is found that when the government implements dual low-carbon subsidies, the supply chain system in which the manufacturer dominates the market is more stable. The government should pay attention to the power structure of the market to determine an appropriate subsidy rate. The over-adjustment of order quantity from manufacturer’s direct sales channel and retailer’s online channel both will lead to large periodical fluctuations in the system, and even bifurcation and chaos. These will cause substantial fluctuations and even loss in the profits of supply chain companies. This analysis shows that delayed feedback can effectively stabilize the periodic bifurcation and chaos in the system.

Low Carbon Footprint

2017 ◽  
pp. 1414-1437
Author(s):  
Muhammad Shabir Shaharudin ◽  
Yudi Fernando
Keyword(s):  
Supply Chain ◽  
Carbon Emissions ◽  
Manufacturing Industry ◽  
Green Building ◽  
Green Technology ◽  
Low Carbon ◽  
Supply Chain Networks ◽  
Government Organizations ◽  
Carbon Supply ◽  
The Government

Malaysia has committed to a 40% reduction of carbon emissions by 2020. The government has encouraged industry, society, and non-government organizations to work together to achieve this objective. The government has provided incentives through several energy programmes such as energy efficiency, renewable energy, green technology, and green building. One key area that has been targeted is logistics and supply chain, which has been contributing to high carbon emissions in manufacturing industries. Scholars and practitioners have only recently begun to pay attention to creating a low carbon supply chain. Furthermore, Small Medium Enterprises (SMEs) have faced several challenges in adopting low carbon activities. SMEs are unable to take the advantage of energy initiatives because of a lack of knowledge, a shortage of funds, and inadequate facilities. Almost 90% of firms are in the service industry working with large manufacturing firms and some SMEs working in manufacturing industry are working closely with their supply chain networks; achieving low carbon targets is hampered by the readiness of the manufacturing itself. This chapter discusses the challenges and future agenda of creating low carbon supply chains in manufacturing in Malaysia. Possible solutions are provided at the end of the chapter.

scholarly journals Tax or Subsidy? Optimal Carbon Emission Policy: A Supply Chain Perspective

2020 ◽  
Vol 12 (4) ◽  
pp. 1548 ◽  
Author(s):  
Xing Yin ◽  
Xiaolin Chen ◽  
Xiaolin Xu ◽  
Lianmin Zhang
Keyword(s):  
Supply Chain ◽  
Carbon Emission ◽  
Negative Impact ◽  
Green Technology ◽  
Manufacturing Firm ◽  
Numerical Studies ◽  
The Social ◽  
The Government ◽  
Increasing Demand ◽  
The Cost

With a rigid requirement for environment protection, governments need to make appropriate policies to induce firms to adopt green technology in consideration of the rapidly increasing demand for environmentally friendly products. We investigated the government policy from the perspective of a supply chain, which consisted of the upstream government (she) and the downstream manufacturing firm (he). The government decided on the policy (tax or subsidy) to maximize the social welfare, while the firm decided on the greenness level of the product, which affects the consumers’ choice behavior and hence his own demand. Assuming else being equal, the government should adopt the tax policy if consumers are very sensitive to the greenness, the cost of greening is high, or the negative impact due to carbon emission is large, and subsidize the firm otherwise. We also conduct some numerical studies when price is endogenous. The main insights can be carried over.

scholarly journals Constructing the Embodied Carbon Flows and Emissions Landscape from the Perspective of Supply Chain

2018 ◽  
Vol 10 (11) ◽  
pp. 3865 ◽  
Author(s):  
Qingjian Zhao ◽  
Zuomin Wen ◽  
Anne Toppinen
Keyword(s):  
Supply Chain ◽  
Process Management ◽  
Hot Spot ◽  
Carbon Sources ◽  
Pulp And Paper ◽  
Chain Model ◽  
Low Carbon ◽  
Embodied Carbon ◽  
Multi Level ◽  
The Government

From the perspective of supply chain, benchmarking the embodied carbon flows and emissions landscape is to study the carbon footprint in supply chain production and process management. On the basis of the theory of a green supply chain, this paper conducted its research through the following steps. First, a multi-level supply chain model was proposed and established, and various sectors, production and management processes, and inputs and outputs of different resources were integrated into the supply chain network, and then divided into multiple levels. Second, a multi-level embodied carbon flow and emissions model was established through the Leontief Inverse. Third, based on the operation data of forestry-pulp and paper companies, the embodied carbon flows and emissions at all levels and sectors were estimated and analyzed. Finally, the dismantling and processing methods of complex carbon network structures were explored, the hot-spot carbon sources and paths were obtained, and the low-carbon innovation and development strategies were proposed. The research results show that: (1) Supply chain is a new idea and carrier to study the spatial and state changes of carbon, and also provides a platform for spatial landscape analysis of carbon; (2) The modeling and calculation of carbon flows and emissions offer a new solution of evaluating the environmental performance of companies with high pollution and emission such as forestry-pulp and paper companies, and provide the government effective technical support to implement environmental regulations and formulate carbon emission reduction policies.

Cost-Sharing Contract in Low Carbonization Supply Chain Based on Improving Demand for Low-Carbon Products

2014 ◽  
Vol 1073-1076 ◽  
pp. 2539-2544
Author(s):  
Yan Ju Zhou ◽  
Yu Qing Huang
Keyword(s):  
Supply Chain ◽  
Cost Sharing ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Retail Price ◽  
Market Demand ◽  
Low Carbon ◽  
Order Quantity ◽  
Carbon Emission Reduction ◽  
Reduction Cost

For the existence of carbon emission reduction cost, the retail price of the products is so high that the market demand is low, which restricts the promotion of low-carbon products. On the background of a bilateral-monopoly supply chain consisting of a single manufacturer and a single retailer, we establish Stackelberg models based on the carbon emission reduction cost-sharing. And we analyze the changes of the order quantity, the profits of each member and the whole supply chain before and after the implementation of the carbon emission reduction cost-sharing contract. According to the research, when the carbon emission reduction cost-sharing contract is introduced into the model, it leads to a good consequence that the optimal order quantity of the low-carbon product increases, the retail price decreases, and the manufacturer and the retailer will get Pareto improvement on certain condition. Then we derivate the necessary conditions that the profit of the retailer and the manufacturer could both increase.

scholarly journals The Farmers’ Channel Selection and Sustainable Analysis under Carbon Tax Policy

2019 ◽  
Vol 11 (10) ◽  
pp. 2765 ◽  
Author(s):  
Cong Zheng ◽  
Quangui Pang ◽  
Tianpei Li ◽  
Guizheng Wang ◽  
Yiji Cai ◽  
...  
Keyword(s):  
Supply Chain ◽  
Carbon Emissions ◽  
Stackelberg Game ◽  
Carbon Tax ◽  
Product Yield ◽  
Channel Selection ◽  
Low Carbon ◽  
Deterioration Rate ◽  
Dual Channels ◽  
The Government

This paper examines a farmer’s channel selection in a supply chain led by a retailer, considering carbon emissions and products’ deterioration. Three channels—online channels, retail channels, and dual channels—are proposed. The inventory model of perishable products and the two-stage Stackelberg game model are used to illustrate the operational process. To compare performances of the three channel structures, we further determine the critical points consisting of the profits and the carbon emissions among these channels. The results provide useful insights for supply chain members and the government. Farmers can choose a channel to optimize profit with respect to deterioration rate and product yield, but it might conflict with the aim of least carbon emissions. When the deterioration rate is high, the online channel is not a suitable choice. For the government, the carbon tax contributes to the reduction of carbon emissions, but it also leads to the loss of the farmer’s profit. Additionally, numerical results further illustrate that, from the perspective of the government, transporting and inventory processes are two major sources of emissions, and it is essential to implement carbon tax and exploit low-carbon transportation.

scholarly journals The Low-Carbon Supply Chain Coordination Problem with Consumers’ Low-Carbon Preference

2020 ◽  
Vol 12 (9) ◽  
pp. 3591 ◽  
Author(s):  
Dan Wu ◽  
Yuxiang Yang
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Cost Sharing ◽  
Supply Chain Coordination ◽  
Low Carbon ◽  
Order Quantity ◽  
Coordination Problem ◽  
Emission Abatement ◽  
The Cost ◽  
The Impact

In this paper, we study the supply chain coordination problem between a manufacturer and a retailer regarding consumers’ low-carbon preferences. The retailer considers the market demand to determine the order quantity; the manufacturer chooses how to reduce emissions according to the retailer’s order quantity. We consider four cases, including the non-emission abatement, the emission abatement of decentralized decision-making, the centralized decision-making and the retailer providing a cost-sharing contract. By comparing the four cases, we find that the case of a retailer providing a cost-sharing contract can coordinate the supply chain, achieving a Pareto improvement for the manufacturer and retailer. In addition, we use the Rubinstein bargaining model to determine the cost-sharing ratio. Finally, numerical simulations are given to analyze the impact of the cost-sharing ratio on the equilibrium results, including the profit and the emission abatement level. Furthermore, we investigate the impact of the cost-sharing ratio and consumers’ low-carbon awareness on the profits of the members in the supply chain. We find that the equilibrium results, including the order quantity, the emission abatement level and the profits of the members in the supply chain under contract, are higher than the ones under centralized decision-making. The results show that in the higher low-carbon awareness market, retailers should formulate a reasonable cost-sharing ratio to achieve emission reduction coordination.

Coordinated Drop Shipping Commitment Contract in Dual-Distribution Channel Supply Chain

2012 ◽  
Vol 10 (4) ◽  
pp. 19-30 ◽  
Author(s):  
Jinshi Zhao ◽  
Yongrui Duan ◽  
Shijin Wang ◽  
Jiazhen Huo
Keyword(s):  
Supply Chain ◽  
General Trend ◽  
Distribution Channel ◽  
Customer Acquisition ◽  
Order Quantity ◽  
Terminal Position ◽  
Dual Channel ◽  
Dual Distribution ◽  
Fast Moving Consumer Goods ◽  
Demand Information

It is a general trend for retailers to develop dual channel to serve different customers. Engaging in internet and drop shipping has raised serious awareness and attention in the retailing field. Retailers are competing for dominance from suppliers using terminal position in many industries like appliance and fast moving consumer goods. In this paper, the authors examine such supply chain context and propose the commitment contracts for the drop shipping supply chain. In a drop-shipping model, the retailer focuses on marketing and customer acquisition, so it has more customer demand information than the supplier. To optimize profit, the retailer usually sends over-estimated demand information to the supplier. On the contrary, the supplier has to design a contract to control such a behavior of the retailer. Their study is to optimize the profit of the supplier and the whole supply chain using the commitment contract that can coordinate the retailer and the supplier in dual-channel and drop-shipping supply chain. If the retailer’s order quantity achieves centralized level, the profit of the supply chain can be maximized.

scholarly journals Recycler Reaction for the Government Behavior in Closed-Loop Supply Chain Distribution Network: Based on the System Dynamics

2015 ◽  
Vol 2015 ◽  
pp. 1-11 ◽  
Author(s):  
Xi gang Yuan ◽  
Xiao qing Zhang
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Government Policy ◽  
Distribution System ◽  
Closed Loop ◽  
Distribution Network ◽  
Bullwhip Effect ◽  
Order Quantity ◽  
Closed Loop Supply Chain ◽  
The Government

With system dynamics, we establish three-closed-loop supply chain distribution network system model which consists of supplier, manufacturer, two retailers, and products (parts) recycler. We proposed that recycler make reflect for the government policy by adjusting the recycling ratio and recycling delay. We use vensim software to simulate this model and investigate how the products (parts) recyclers behavior influences the loop supply chain distribution system. The result shows that (1) when recyclers respond positively to government policies, recycling will increase the proportion of recyclers. When recyclers respond negatively to government policy making, recycling will reduce the proportion of recyclers. (2) When the recovery percentage of recyclers improves, manufacturers, Retailer 1, and Retailer 2 quantity fluctuations will reduce and the bullwhip effect will diminish. (3) When the proportion of recycled parts recyclers is lowered, manufacturers, Retailer 1, and Retailer 2 inventory fluctuation will increase and the bullwhip effect will be enhanced. (4) When recyclers recycling product delays increased, volatility manufacturers order quantity will rise, but there is little change in the amount of fluctuation of orders of the two retailers. (5) When recycling parts recyclers delay increases, fluctuations in the supplier order quantity will rise, but there is little change in the amount of fluctuation of orders of the two retailers.

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