Design and Analysis of Supply Chain Networks with Low Carbon Emissions

2017 ◽  
Vol 52 (4) ◽  
pp. 1353-1374 ◽  
Author(s):  
Tsai-Chi Kuo ◽  
Ming-Lang Tseng ◽  
Hsiao-Min Chen ◽  
Ping-Shun Chen ◽  
Po-Chen Chang
Author(s):  
Muhammad Shabir Shaharudin ◽  
Yudi Fernando

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.


2017 ◽  
pp. 1414-1437
Author(s):  
Muhammad Shabir Shaharudin ◽  
Yudi Fernando

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.


2013 ◽  
Vol 291-294 ◽  
pp. 1407-1412 ◽  
Author(s):  
Liang Jie Xia ◽  
Dao Zhi Zhao ◽  
Bai Yun Yuan

In low carbon economy, carbon emissions permit has become a kind of resource; in the market economy system, new economic relations between enterprises have appeared, these characteristics make enterprise operation cost structure and profiting pattern changed. The paper reviews the previous literature on carbon footprint, production optimization theory individual enterprise and supply chain operation management with carbon emissions constraints. Then the paper put forward four worth further research directions: Carbon emission cost distribution and scientific measurement in supply chain; supply chain operation based on consumer behavior in Low Carbon Economy Era; optimizing the allocation of carbon emissions permit in supply chain; Dynamic Multi-period operation optimization of carbon efficient supply chain.


2017 ◽  
Vol 117 (10) ◽  
pp. 2468-2484 ◽  
Author(s):  
Xu Chen ◽  
Xiaojun Wang

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.


2016 ◽  
pp. 235-266
Author(s):  
Yu Mei Wong

Large amounts of carbon emissions and pollution are generated during the manufacturing process for consumer goods. Low carbon manufacturing has been increasingly enquired or requested by stakeholders. However, international trade blurs the responsibility for carbon emissions reduction and raises the questions of responsibility allocation among producers and consumers. Scholars have been examining the nexus of producer versus consumer responsibility among supply chains. Recently, there have been discussions on the share of producer and consumer responsibility. Both producer and consumer responsibility approaches have intrinsic shortcomings and are ineffective in curbing the rise of carbon emissions in supply chains. Shared responsibility based on the equity principle attempts to address these issues. This chapter relates a case study of carbon impact on China's export and economy with scenarios which show that the benefits of carbon reduction by producers can trickle down along the supply chain and motivate the sharing responsibility under certain circumstances. The share of producer and consumer responsibility for low carbon manufacturing can be enabled when embodied carbon emissions in goods and services are priced and such accurate information is available. A mechanism engaging the global participation is recommended. The author calls for further research on the system pricing embodied carbon emission, the universal standard to calculate the embodied carbon emissions and to disclose the information, and the way to secure global cooperation and participation.


2019 ◽  
Vol 11 (10) ◽  
pp. 2765 ◽  
Author(s):  
Cong Zheng ◽  
Quangui Pang ◽  
Tianpei Li ◽  
Guizheng Wang ◽  
Yiji Cai ◽  
...  

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.


Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-14 ◽  
Author(s):  
Zheng Liu ◽  
Bin Hu ◽  
Bangtong Huang ◽  
Lingling Lang ◽  
Hangxin Guo ◽  
...  

Affected by the Internet, computer, information technology, etc., building a smart city has become a key task of socialist construction work. The smart city has always regarded green and low-carbon development as one of the goals, and the carbon emissions of the auto parts industry cannot be ignored, so we should carry out energy conservation and emission reduction. With the rapid development of the domestic auto parts industry, the number of car ownership has increased dramatically, producing more and more CO2 and waste. Facing the pressure of resources, energy, and environment, the effective and circular operation of the auto parts supply chain under the low-carbon transformation is not only a great challenge, but also a development opportunity. Under the background of carbon emission, this paper establishes a decision-making optimization model of the low-carbon supply chain of auto parts based on carbon emission responsibility sharing and resource sharing. This paper analyzes the optimal decision-making behavior and interaction of suppliers, producers, physical retailers, online retailers, demand markets, and recyclers in the auto parts industry, constructs the economic and environmental objective functions of low-carbon supply chain management, applies variational inequality to analyze the optimal conditions of the whole low-carbon supply chain system, and finally carries out simulation calculation. The research shows that the upstream and downstream auto parts enterprises based on low-carbon competition and cooperation can effectively manage the carbon footprint of the whole supply chain through the sharing of responsibilities and resources among enterprises, so as to reduce the overall carbon emissions of the supply chain system.


Author(s):  
Yu Mei Wong

Large amounts of carbon emissions and pollution are generated during the manufacturing process for consumer goods. Low carbon manufacturing has been increasingly enquired or requested by stakeholders. However, international trade blurs the responsibility for carbon emissions reduction and raises the questions of responsibility allocation among producers and consumers. Scholars have been examining the nexus of producer versus consumer responsibility among supply chains. Recently, there have been discussions on the share of producer and consumer responsibility. Both producer and consumer responsibility approaches have intrinsic shortcomings and are ineffective in curbing the rise of carbon emissions in supply chains. Shared responsibility based on the equity principle attempts to address these issues. This chapter relates a case study of carbon impact on China’s export and economy with scenarios which show that the benefits of carbon reduction by producers can trickle down along the supply chain and motivate the sharing responsibility under certain circumstances. The share of producer and consumer responsibility for low carbon manufacturing can be enabled when embodied carbon emissions in goods and services are priced and such accurate information is available. A mechanism engaging the global participation is recommended. The author calls for further research on the system pricing embodied carbon emission, the universal standard to calculate the embodied carbon emissions and to disclose the information, and the way to secure global cooperation and participation.


Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chuanxu Wang ◽  
Qiaoyu Peng ◽  
Lang Xu

Purpose This paper aims to explore how upstream supply chain companies will control the carbon emissions and price decisions of products when the government implements environmental tax policy on consumers. It provides some suggestions to control carbon emissions for the government and manufacturers. Design/methodology/approach This study establishes two-echelon Stackelberg game models with and without the implementation of environmental tax policy on consumers in a centralized scenario and a decentralized scenario. Through the comparative analysis of the four models, the optimal emission abatement and pricing strategies are obtained. Findings This paper concludes that implementing environmental tax policy on consumers within the market’s acceptable range is more beneficial to the retailer and the environment, as well as the overall social welfare, except for the manufacturer. Moreover, consumer’s low-carbon preference always has a broader impact on carbon abatement and corporate profits than environmental tax coefficient. Finally, the side-payment self-executing contract can effectively ensure that the supply chain members make rational decisions spontaneously while achieving a win-win solution of centralized scenario. Originality/value This paper first considers how the government’s environmental tax policy on consumers will affect the decision-making of supply chain companies, and proposes an improved side-payment self-enforcing contract to maximize environmental and economic benefits of centralized scenario. In addition, it provides a reference for the government to adopt both the carbon cap policy and the environmental tax policy.


Author(s):  
Xiaoli Zhang ◽  
Guoyi Xiu ◽  
Fakhar Shahzad ◽  
Caiquan Duan

The reduction in carbon emissions by industrial enterprises is an important means for promoting environmental protection and achieving sustainable development. To determine the impact of carbon emissions reduction on supply chain operation and financing decision-making, in this study we designed three financing strategies, i.e., bank loan financing, equity financing, and hybrid financing (a combination of bank loan financing and equity financing), for a manufacturer (leader) and a low-carbon supply chain composed of a capital-constrained retailer, constructed Stackelberg game models, solved the equilibrium results under each financing strategy using the reverse recursion method, and revealed the financing preference of the supply chain member companies through comparative analysis. The results showed that the increase in the consumers’ low-carbon preference and equity financing ratio have positive impacts on supply chain equilibrium, a result that is opposite that for the impact of the interest rate of bank loan financing; additionally, the abovementioned three factors jointly determine the profit of the manufacturer of the low-carbon supply chain, while the retailer’s profit is affected by the equity dividend ratio. Finally, we present the conditions for the financing preference of the manufacturer and the retailer. The findings of this study can provide references for low-carbon supply chain companies to make appropriate management decisions.


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