scholarly journals Optimal Operational Decision Making of Manufacturers and Authorized Remanufacturers with Patent Licensing under Carbon Cap-and-Trade Regulations

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-22
Author(s):  
Biyu Liu ◽  
Zhongsheng Hua ◽  
Qinhong Zhang ◽  
Haidong Yang ◽  
Athanasios Migdalas
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Carbon Emissions ◽  
Environmental Benefits ◽  
Cap And Trade ◽  
Royalty Rate ◽  
Yield Rate ◽  
Decentralized Decision Making ◽  
Total Profit ◽  
Operational Decision Making

Constrained by production capacity and the pressure to reduce emissions, many original equipment manufacturers (OEMs) authorize third-party remanufacturers (TPRs) to remanufacture patented products. We investigate the operational decisions of OEMs and authorized TPRs under carbon cap-and-trade regulations in a two-echelon supply chain. We first formulate an operational decision model for OEMs before a TPR enters. Then, for the cases of centralized and decentralized decision making, we formulate an operational decision-making model for the TPR and, subsequently, establish one for the OEM after the TPR enters. We further analyze the effects of carbon emissions cap, trading price of carbon permits, yield rate, and consumer willingness to pay (WTP) on optimal decisions. Our results indicate: whether TPRs accept authorization remanufacturing depending on the ratio of carbon emissions cap to carbon emissions for producing per remanufactured product; royalty rate is negatively affected by trading price of carbon permits and per remanufactured product’ carbon emissions other than that for per new product, and can offset the threat caused by TPRs; the implementation of carbon cap-and-trade regulations causes OEMs to charge TPRs lower royalty rate; centralized decision making increases the total profit of the supply chain and delivers superior environmental benefits. As yield rate and WTP increase, the total profit increases, increasingly sensitive to WTP.

scholarly journals The More Supply Chain Control Power, the Better? A Comparison among Four Kinds of Cooperation Models

2015 ◽  
Vol 2015 ◽  
pp. 1-19 ◽  
Author(s):  
Weihua Liu ◽  
Shuqing Wang ◽  
Donglei Zhu
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chain Coordination ◽  
Wholesale Price ◽  
The Other ◽  
Order Quantity ◽  
Control Power ◽  
Decentralized Decision Making ◽  
Optimal Value ◽  
Total Profit

This paper introduces the parameter of supply chain control power into existing supply chain coordination models and explores the impacts of control power on the profits of manufacturer, retailer, and the overall supply chain under four modes of decision-making, including the decentralized decision-making dominated by manufacturer, the decentralized decision-making dominated by retailer, centralized decision-making, and Nash negotiation decision-making. Some significant conclusions are obtained. Firstly, supply chain control power does have great impact on the supply chain profits. The profit of the whole supply chain with centralized decision-making is higher than those of the other three modes, while the overall profit of supply chain with decentralized decision-making is superior to the profit when retailer and manufacturer dominate the supply chain together. Secondly, with decentralized decision-making, for manufacturer and retailer, it is beneficial to gain the control powers of the supply chain; however, control power has an optimal value, not the bigger, the better. Thirdly, under certain circumstances, order quantity will increase and the wholesale price will decrease when control power is transferred from manufacturer to retailer. In this case, the total profit of supply chain dominated by retailer will be greater than that dominated by manufacturer.

scholarly journals Self-Operated Store or Franchised Store? Optimal Decisions for Online-to-Offline Supply Chain with a Demand Shift

2020 ◽  
Vol 2020 ◽  
pp. 1-15
Author(s):  
Feng Wei ◽  
Yan Zhu
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Coordination Mechanism ◽  
Transfer Payment ◽  
Selling Price ◽  
Supply Chain System ◽  
Optimal Decisions ◽  
Decentralized Decision Making ◽  
Total Profit ◽  
Demand Shifts

Mutual shifts in offline and online demand have become the norm in supply chain operations. The online-to-offline (O2O) supply chain system consists of a platform vendor, a physical store, and a product. The platform vendor sells the product directly online and governs either the centralized decision-making of a self-operated store or the decentralized decision-making of a franchised store offline. In this study, supply chain decision models with and without demand shifts are constructed to obtain optimal wholesale and selling prices and to maximize profit. The coordination mechanism under decentralized decision-making is designed to optimize the O2O supply chain, and the validity and applicability of the model are verified by numerical simulation. Results show that, regardless of whether a store is self-operated or franchised, the total profit of the system increases, and online and offline prices depend on a range of demand shifts. With an increased proportion of online demand shifts, the offline selling price and total profit of the system increase, whereas the online selling price and profit of the platform vendor decrease under decentralized decision-making. When the fixed transfer payment fee is within a certain range, a two-part-tariff contract can effectively coordinate the supply chain. This study not only contributes to the theoretical literature on O2O supply chain systems but also provides practical decision-making support for managers.

scholarly journals Government Low-Carbon Regulations Based on Supply Chain Members’ Behavior and Consumers’ Channel Preference in a Dual-Channel Supply Chain

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-18
Author(s):  
Bingquan Liu ◽  
Xuran Chang ◽  
Boyang Nie ◽  
Yue Wang ◽  
Lingqi Meng
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Carbon Emissions ◽  
Stackelberg Game ◽  
Emissions Reduction ◽  
Low Carbon ◽  
Dual Channel ◽  
Decentralized Decision Making ◽  
The Government ◽  
Dual Channel Supply Chain

As carbon emissions are increasing due to the development of economy, low-carbon supply chain plays an important role in carbon emissions reduction and the dual-channel supply chain has become a hit because online shopping is developing rapidly. Therefore, this paper builds a Stackelberg game model led by the manufacturer in a dual-channel supply chain to examine the reaction of the government under centralized or decentralized decisions-making structures with different low-carbon strategies. The result shows that the government can achieve higher profits by taking incentive or punitive measures for centralized decision-making supply chain no matter they invest in emissions reduction or not. Moreover, for decentralized decision-making mode, increasing low-carbon subsidies for retailers can achieve a win-win result between the supply chain and the government; and, finally, channel competition is good for improving the supply chain and social benefits. Therefore, the government is responsible for taking reasonable subsidy policies, formulate industry’s low-carbon standards, and properly guide competition between supply chain members to achieve higher profits.

scholarly journals Integrated Production and Transportation Scheduling in E-Commerce Supply Chain with Carbon Emission Constraints

2021 ◽  
Vol 16 (7) ◽  
pp. 2554-2570
Author(s):  
Weixin Wang ◽  
Shizhen Wang ◽  
Jiafu Su
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Carbon Emissions ◽  
Carbon Emission ◽  
Supply Chain Scheduling ◽  
Scheduling Optimization ◽  
Integrated Production ◽  
Decentralized Decision Making ◽  
Transportation Scheduling ◽  
The Impact

Carbon emission constraints and trading policies in e-commerce environments have brought huge challenges to the operation of supply chain enterprises. In order to ensure the good operation of the e-commerce supply chain in a low-carbon environment, a supply chain scheduling optimization method based on integration of production and transportation with carbon emission constraints is proposed; we use it to analyze the impact of centralized decision-making mode and decentralized decision-making mode on supply chain scheduling and establish a scheduling optimization model that aims at optimal carbon emissions and costs. A multilevel genetic algorithm was designed according to the characteristics of the model, and numerical examples are used to verify the effectiveness of the model and algorithm. The results show that the centralized decision-making mode plays the role of the carbon emission constraints to the greatest extent; the carbon emissions and the cost are smallest in the centralized decision-making mode. The decentralized decision-making mode leads to the overall cost preference of the supply chain due to separate decisions made by enterprises, and the carbon emissions in the supply chain are greater. Transportation experts, business managers and government departments are interesting for integrated production and transportation scheduling in e-commerce supply chain with carbon emission constraints. Further research should address integrated production and transportation scheduling in dual-channel low supply chains.

scholarly journals Supply-Chain Pricing and Coordination for New Energy Vehicles Considering Heterogeneity in Consumers’ Low Carbon Preference

2020 ◽  
Vol 12 (4) ◽  
pp. 1306 ◽  
Author(s):  
Bengang Gong ◽  
Xuan Xia ◽  
Jinshi Cheng
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Marginal Effect ◽  
Low Carbon ◽  
Green Consumers ◽  
Decentralized Decision Making ◽  
New Energy ◽  
Total Profit ◽  
The Impact ◽  
New Energy Vehicles

Given consumers’ willingness to pay different prices for new energy vehicles (NEVs) and traditional vehicles, we construct a utility model of ordinary and green consumers. We establish pricing game models for centralized and decentralized decisions in an NEV’s supply chain in order to study the impact of changes in consumers’ low carbon preference heterogeneity on supply chain pricing and member profit. The results show that consumers’ low carbon preferences and the ratio of green consumers increases with the ex-factory and selling prices of NEVs. An increase in the percentage of green consumers under centralized decision-making will reduce the total profit of the supply chain. Manufacturers’ profits under decentralized decision-making are greater than the dealers’ profits, and the sum of the two members’ profits under decentralized decision-making is less than the total profit of the supply chain under centralized decision-making. We design a revenue-sharing contract to eliminate the double marginal effect.

scholarly journals Sustainable Production–Inventory Model in Technical Cooperation on Investment to Reduce Carbon Emissions

Processes ◽  
2020 ◽  
Vol 8 (11) ◽  
pp. 1438 ◽  
Author(s):  
JiaLiang Pan ◽  
Chui-Yu Chiu ◽  
Kun-Shan Wu ◽  
Hsiu-Feng Yen ◽  
Yen-Wen Wang
Keyword(s):  
Supply Chain ◽  
Carbon Emissions ◽  
Carbon Emission ◽  
Inventory Model ◽  
Capital Investments ◽  
Cap And Trade ◽  
Green Technologies ◽  
Supply Chain System ◽  
Production Inventory ◽  
Total Profit

Carbon cap-and-trade and carbon offsets are common and important carbon emission reduction policies in many countries. In addition, carbon emissions from business activities can be effectively reduced through specific capital investments in green technologies. Nevertheless, such capital investments are costly and not all enterprises can afford these investments. Therefore, if all members of a supply chain agree to share the investments in the facilities, the supply chain can reduce carbon emissions and generate more profit. Under carbon cap-and-trade and carbon tax policies, this study proposes a production–inventory model in which the buyer and vendor in the integrated supply chain agree to co-invest funds to reduce carbon emissions. We planned to integrate production, delivery, replenishment, and technology to reduce carbon emissions so as to maximize the total profit of the supply chain system. Several examples are simulated and the sensitivity analysis of the main parameters is carried out. The optimal solutions and joint total profit under various carbon emission policies are also compared. The future carbon emission control trend is expected to enable companies to share risks by co-investing and developing sustainable supply chains.

scholarly journals Effect of service quality on software sales and coordination mechanism in IT service supply chain

2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Tinghai Ren ◽  
Kaifu Yuan ◽  
Dafei Wang ◽  
Nengmin Zeng
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Service Provider ◽  
Sales Price ◽  
Software Developer ◽  
It Service ◽  
Service Supply Chain ◽  
Decentralized Decision Making ◽  
Total Profit

<p style='text-indent:20px;'>Currently, the upstream software developer usually cooperates with the downstream service provider to sell software and related services to client enterprises. Furthermore, the quality of pre-sale services provided by the provider has significant impact on software sales and on the performance of IT service supply chain (ITSSC). However, the existing research on IT service supply chain management (ITSSCM) lacks attention to this issue. In this study, we consider an ITSSC with a software developer, a service provider and client enterprises. Two scenarios are discussed in this study. Our study finds that the quality of pre-sale services provided by the provider and the price of extended warranty service (EWS) provided by the developer (in centralized decision-making (CDM)) are both higher than those in decentralized decision-making (DDM); when the sensitivity of clients to the software price is lower than a certain critical value, the software sales price (in CDM) is unexpectedly higher than that in DDM; however, when it is higher than the certain value, the software sales price (in CDM) is lower than that in DDM. Due to the double marginal effect between the developer and the provider, the total profit of ITSSC (in DDM) is always lower than that in CDM. By providing a combined coordination contract based on "guiding price <inline-formula><tex-math id="M1">\begin{document}$ + $\end{document}</tex-math></inline-formula> service cost sharing <inline-formula><tex-math id="M2">\begin{document}$ + $\end{document}</tex-math></inline-formula> product revenue sharing", not only the total profit of ITSSC can be increased, but also the profit of ITSSC members can be Pareto improved.</p>

scholarly journals Achieve a low carbon supply chain through product mix

2017 ◽  
Vol 117 (10) ◽  
pp. 2468-2484 ◽  
Author(s):  
Xu Chen ◽  
Xiaojun Wang
Keyword(s):  
Supply Chain ◽  
Trade Policy ◽  
Carbon Emissions ◽  
Channel Structure ◽  
Low Carbon ◽  
Cap And Trade ◽  
Product Mix ◽  
Content Type ◽  
Carbon Supply ◽  
Trade Offs

Purpose In the era of climate change, industrial organizations are under increasing pressure from consumers and regulators to reduce greenhouse gas emissions. The purpose of this paper is to examine the effectiveness of product mix as a strategy to deliver the low carbon supply chain under the cap-and-trade policy. Design/methodology/approach The authors incorporate the cap-and-trade policy into the green product mix decision models by using game-theoretic approach and compare these decisions in a decentralized model and a centralized model, respectively. The research explores potential behavioral changes under the cap-and-trade in the context of a two-echelon supply chain. Findings The analysis results show that the channel structure has significant impact on both economic and environmental performances. An integrated supply chain generates more profits. In contrast, a decentralized supply chain has lower carbon emissions. The cap-and-trade policy makes a different impact on the economic and environmental performances of the supply chain. Balancing the trade-offs is critical to ensure the long-term sustainability. Originality/value The research offers many interesting observations with respect to the effect of product mix strategy on operational decisions and the trade-offs between costs and carbon emissions under the cap-and-trade policy. The insights derived from the analysis not only help firms to make important operational and strategic decisions to reduce carbon emissions while maintaining their economic competitiveness, but also make meaningful contribution to governments’ policy making for carbon emissions control.

scholarly journals Financing and pricing strategies of construction supply chain under capital constraint

2021 ◽  
Vol 336 ◽  
pp. 09004
Author(s):  
Yuxin Wen ◽  
Linyi Wu ◽  
Fengmin Yao
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Stackelberg Game ◽  
Distribution Model ◽  
Pricing Strategies ◽  
External Financing ◽  
Pricing Decision ◽  
Decentralized Decision Making ◽  
Internal Financing ◽  
Decision Making Model

Affected by factors such as cost, the financial constraints faced by the supply chain are becoming more and more severe. This paper constructs a financing and pricing decision-making model for the construction supply chain under capital constraints, and uses Stackelberg game theory to analyze and obtain the best financing and pricing strategy for the construction supply chain under the internal and external financing modes. The study found that when centralized decision-making is adopted, there is a profit distribution model that makes the profits obtained by construction developers and contractors greater than the profits obtained in decentralized decision-making; the internal financing model of the construction supply chain is better than external financing, and can enable the construction supply chain get higher profits.

scholarly journals Optimal Decisions for Two Risk-Averse Competitive Manufacturers under the Cap-and-Trade Policy and Uncertain Demand

2020 ◽  
Vol 17 (3) ◽  
pp. 1010 ◽  
Author(s):  
Hongxia Sun ◽  
Jie Yang ◽  
Yang Zhong
Keyword(s):  
Decision Making ◽  
Carbon Emissions ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Reduction Rate ◽  
Risk Averse ◽  
Cap And Trade ◽  
Carbon Emission Reduction ◽  
Optimal Decisions ◽  
The Government

With the increasingly serious problem of environmental pollution, reducing carbon emissions has become an urgent task for all countries. The cap-and-trade (C&T) policy has gained international recognition and has been adopted by several countries. In this paper, considering the uncertainty of market demand, we discuss the carbon emission reduction and price policies of two risk-averse competitive manufacturers under the C&T policy. The two manufacturers have two competitive behaviors: simultaneous decision making and sequential decision making. Two models were constructed for these behaviors. The optimal decisions, carbon emission reduction rate, and price were obtained from these two models. Furthermore, in this paper the effects of some key parameters on the optimal decision are discussed, and some managerial insights are obtained. The results show that the lower the manufacturers’ risk aversion level is, the higher their carbon emission reduction rate and utilities. As the carbon quota increases, the manufacturers’ optimal carbon reduction rate and utilities increase. Considering consumers’ environmental awareness, it is more beneficial for the government to reduce the carbon quota and motivate manufacturers’ internal enthusiasm for emission reduction. The government can, through macro control of the market, make carbon trading prices increase appropriately and encourage manufacturers to reduce carbon emissions.

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