scholarly journals A Multistage Sustainable Production–Inventory Model with Carbon Emission Reduction and Price-Dependent Demand under Stackelberg Game

2020 ◽  
Vol 10 (14) ◽  
pp. 4878
Author(s):  
Chi-Jie Lu ◽  
Tian-Shyug Lee ◽  
Ming Gu ◽  
Chih-Te Yang
Keyword(s):  
Supply Chain ◽  
Carbon Emissions ◽  
Stackelberg Game ◽  
Carbon Tax ◽  
Inventory Model ◽  
Sustainable Production ◽  
Equilibrium Solutions ◽  
Production Inventory ◽  
Dependent Demand ◽  
Tax Regulation

This paper investigated a multistage sustainable production–inventory model for deteriorating items (i.e., raw materials and finished goods) with price-dependent demand and collaborative carbon reduction technology investment under carbon tax regulation. The model was developed by first defining the total profit of the supply chain members under carbon tax regulation and, second, considering a manufacturer (leader)–retailer (follower) Stackelberg game. The optimal equilibrium solutions that maximize the manufacturer’s and retailer’s total profits were determined through the method analysis. An algorithm complemented the model to determine the optimal equilibrium solutions, which were then treated with sensitivity analyses for the major parameters. Based on the numerical analysis, (a) carbon tax policies help reduce carbon emissions for both the manufacturer and retailer; (b) most carbon emissions from supply chain operations negatively impact the total profits of both members; (c) the retailer may increase the optimal equilibrium selling price to respond to an increase in carbon emissions from supply chain operations or carbon tax; and (d) autonomous consumption positively affects both members’ optimal equilibrium policies and total profits, whereas induced consumption does the opposite. These findings are very managerial and instructive for companies seeking profits and fulfilling environmental responsibility and governments.

scholarly journals A Production Inventory Model for Deteriorating Items with Collaborative Preservation Technology Investment Under Carbon Tax

2019 ◽  
Vol 11 (18) ◽  
pp. 5027 ◽  
Author(s):  
Shen ◽  
Shen ◽  
Yang
Keyword(s):  
Greenhouse Gas Emissions ◽  
Greenhouse Gas ◽  
Carbon Emissions ◽  
Carbon Tax ◽  
Inventory Model ◽  
Gas Emissions ◽  
Technology Investment ◽  
Preservation Technology ◽  
Production Inventory ◽  
Preservation Technology Investment

The increase in carbon emissions is considered one of the major causes of global warming and climate change. To reduce the potential environmental and economic threat from such greenhouse gas emissions, governments must formulate policies related to carbon emissions. Most economists favor the carbon tax as an approach to reduce greenhouse gas emissions. This market-based approach is expected to inevitably affect enterprises’ operating activities such as production, inventory, and equipment investment. Therefore, in this study, we investigate a production inventory model for deteriorating items under a carbon tax policy and collaborative preservation technology investment from the perspective of supply chain integration. Our main purpose is to determine the optimal production, delivery, ordering, and investment policies for the buyer and vendor that maximize the joint total profit per unit time in consideration of the carbon tax policy. We present several numerical examples to demonstrate the solution procedures, and we conduct sensitivity analyses of the optimal solutions with respect to major parameters for identifying several managerial implications that provide a useful decision tool for the relevant managers. We hope that the study results assist government organizations in selecting a more appropriate carbon emissions policy for the carbon reduction trend.

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 Green Procurement Relationships Development under Carbon Emissions Regulations: A Bi-Level Programming Approach

2018 ◽  
Vol 15 (10) ◽  
pp. 2183 ◽  
Author(s):  
Xiao-Ying Bao ◽  
Lei Zhang
Keyword(s):  
Supply Chain ◽  
Carbon Emissions ◽  
Stackelberg Game ◽  
Programming Model ◽  
Carbon Tax ◽  
Raw Materials ◽  
Programming Approach ◽  
Green Procurement ◽  
Multiple Sourcing ◽  
Upper Level

A multi-period Stackelberg game is adopted to study a green procurement relationship between manufacturers and suppliers in a supply chain. The manufacturers are considered as leaders, while the suppliers are modelled as followers in this Stackelberg game. Accordingly, a mixed binary linear bi-level programming model is developed to elaborate the game in consideration of carbon tax scheme. The upper level (the leader) aims at selecting a proper number of suitable suppliers to provide heterogeneous raw materials at the lowest operational cost. The objective of the lower level (the follower) is to find optimal purchasing quantities of raw materials. In addition, two lemmas are introduced to transform the mixed linear bi-level programming model into a single level linear programming model. The numerical example illustrates that: (1) the manufacturer prefers to adopt the multiple sourcing strategy due to the flexibility; (2) keeping stable supplies and large order volumes could effectively reduce carbon emissions for the suppliers and make the supply chain greener.

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 Optimizing a Sustainable Supply Chain Inventory Model for Controllable Deterioration and Emission Rates in a Greenhouse Farm

Mathematics ◽  
2021 ◽  
Vol 9 (5) ◽  
pp. 495
Author(s):  
Umakanta Mishra ◽  
Abu Hashan Md Mashud ◽  
Ming-Lang Tseng ◽  
Jei-Zheng Wu
Keyword(s):  
Supply Chain ◽  
Carbon Emissions ◽  
Trade Credit ◽  
Numerical Study ◽  
Inventory Model ◽  
Green Technology ◽  
Solution Technique ◽  
Emission Rates ◽  
Sustainable Supply Chain ◽  
Green Technologies

This study investigated how greenhouse managers should invest in preservation and green technologies and introduce trade credit to increase their profits. We propose a supply chain inventory model with controllable deterioration and emission rates under payment schemes for shortage and surplus, where demand depends on price and trade credit. Carbon emissions and deterioration are factors affecting global warming, and many greenhouse managers have focused on reducing carbon emissions. Carbon caps and tax-based incentives have been used in many greenhouses to achieve such reduction. Because of the importance of reducing carbon emissions for developing a green supply chain, various studies have investigated how firms deal with carbon emission constraints. In this continuation, we have used green technology to curb the excessive emissions from the environment or make it clean from CO2. In a seller–buyer relationship, the seller can offer a trade credit period to the buyer to manage stock and stimulate demand. Deterioration may become a challenge for most firms as they are under time constraints control, and preservation technology could help. This study proposes three novel inventory strategies for a sustainable supply chain (full backorder, partial backorder, and no backorder), linking all these important issues. The solution optimizes total annual profit for inventory shortage or surplus. We conducted a numerical study with three examples to evaluate the model’s authenticity and effectiveness and demonstrate the solution technique. The deterioration and emission rates can be included in a trade credit policy to increase greenhouse profits. The results suggest that greenhouse managers could apply the proposed model to manage real-world situations.

scholarly journals Decisions and Coordination in E-Commerce Supply Chain under Logistics Outsourcing and Altruistic Preferences

Mathematics ◽  
2021 ◽  
Vol 9 (3) ◽  
pp. 253
Author(s):  
Yuyan Wang ◽  
Zhaoqing Yu ◽  
Liang Shen ◽  
Runjie Fan ◽  
Rongyun Tang
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Stackelberg Game ◽  
Consumer Preferences ◽  
Third Party ◽  
Altruistic Behavior ◽  
Fixed Cost ◽  
Equilibrium Solutions ◽  
Factors Affecting ◽  
Dual Channel

Considering the peculiarities of logistics in the electronic commerce (e-commerce) supply chain (ESC) and e-commerce platform’s altruistic preferences, a model including an e-commerce platform, third-party logistics service provider, and manufacturer is constructed. Based on this, three decision models are proposed and equilibrium solutions are obtained by the Stackelberg game. Then, an “altruistic preference joint fixed-cost” contract is proposed to maximize system efficiency. Finally, numerical analysis is used to validate the findings of the paper. The article not only analyzes and compares the optimal decisions under different ESC models, but also explores the intrinsic factors affecting the decisions. This paper finds that the conclusions of dual-channel supply chains or traditional supply chains do not necessarily apply to ESC, and that the effect of altruistic behavior under ESC is influenced by consumer preferences. Moreover, there is a multiparty win–win state for ESC, and this state can be achieved through the “altruistic preference joint fixed-cost” contract. Therefore, the findings of this paper contribute to the development of an e-commerce market and the cooperation of ESC members.

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