Evaluating the impact of carbon tax policy on manufacturing and remanufacturing decisions in a closed-loop supply chain

Author(s):  
Ruiling Luo ◽  
Li Zhou ◽  
Yang Song ◽  
Tijun Fan
2021 ◽  
Vol 13 (11) ◽  
pp. 6425
Author(s):  
Quanxi Li ◽  
Haowei Zhang ◽  
Kailing Liu

In closed-loop supply chains (CLSC), manufacturers, retailers, and recyclers perform their duties. Due to the asymmetry of information among enterprises, it is difficult for them to maximize efficiency and profits. To maximize the efficiency and profit of the CLSC, this study establishes five cooperation models of CLSC under the government‘s reward–penalty mechanism. We make decisions on wholesale prices, retail prices, transfer payment prices, and recovery rates relying on the Stackelberg game method and compare the optimal decisions. This paper analyzes the impact of the government reward-penalty mechanism on optimal decisions and how members in CLSC choose partners. We find that the government’s reward-penalty mechanism can effectively increase the recycling rate of used products and the total profit of the closed-loop supply chain. According to the calculation results of the models, under the government’s reward-penalty mechanism, the cooperation can improve the CLSC’s used products recycling capacity and profitability. In a supply chain, the more members participate in the cooperation, the higher profit the CLSC obtain. However, the cooperation mode of all members may lead to monopoly, which is not approved by government and customers.


2020 ◽  
Vol 2020 ◽  
pp. 1-20 ◽  
Author(s):  
Xiao-qing Zhang ◽  
Xi-gang Yuan ◽  
Da-lin Zhang

In manufacturer-led closed-loop supply chain (CLSC) with two competing retailers, the retailer-1 recycles WEEE whose fixed recycling cost is asymmetric information. Using dynamics game theory and principal-agent theory, three dynamic game models are built including (1) benchmark model without reward-penalty mechanism (RPM); (2) decentralized model with carbon emission RPM; (3) decentralized model with carbon emission RPM and recovery rate RPM. This paper discusses the influence of RPM and retailers competition on the CLSC and members benefits. The results show that (1) the carbon emission RPM increases retail price, but decreases the WEEE recycling motivation usually. On the contrary, the recovery rate RPM guides WEEE recycling and lowers the retail price effectively. (2) In any case, the retailer-1’s profit is higher than that of the retailer-2; apparently it suggests that the retailer recycling WEEE gains competitive advantages. Furthermore, both the recovery rate RPM and retailers competition are beneficial to improve the competitive advantage. The relationship between two retailers’ retail price is affected by many complicated factors. (3) The WEEE buyback price and WEEE recovery rate with high fixed recycling cost (H-type) are always higher than that of low fixed recycling cost (L-type), respectively, which means that the H-type fixed recycling cost has scale advantages; the greater the reward-penalty intensity and the fiercer the competition, the more obvious the scale advantages under certain condition. (4) The retailers’ competition can not only guide WEEE recycling but also improve retailers’ profits. Meanwhile, the impact of competition on the manufacturer is related to RPM, but the fierce competition decreases the manufacturer’s profit.


2020 ◽  
Vol 12 (20) ◽  
pp. 8398
Author(s):  
Juan Pedro Sepúlveda-Rojas ◽  
Rodrigo Ternero

Purpose: This article analyzes the value of information and coordination in a closed loop supply chain (CLSC) and discusses the benefits of a global or local optimization approach and the impact of uncertainty. Methodology: A theoretical dyadic closed loop supply chain is analyzed where the manufacturer re-manufactures products returned by customers, producing “as good as new products” for the retailer. Twelve coordination scenarios were analyzed. For the definition of these scenarios, a framework based on two criteria was proposed: value of information and perimeter of decision making. Findings: Information on returns leads to lower costs than information on demand. In the presence of complete or partial coordination between the actors in the supply chain, it is preferable to have low product return rates. However, if we are in the complete absence of coordination, high rates of return are more convenient as they function as a buffer against uncertainties. The perimeter of decision making (global or local optimization) does not significantly improve the supply chain performance in relation to its costs. Only the exchange of information improves its performance. Therefore, companies should make efforts to exchange information, first, on their lot sizes, then on their returns and finally, on the customer demand. Originality: The novelty of our work relies on an analysis of the closed loop supply chain performance with the simultaneous presence of information, coordination, and uncertainty.


2013 ◽  
Vol 869-870 ◽  
pp. 840-843
Author(s):  
Xin Janet Ge

The Australian carbon pricing scheme (carbon tax) was introduced and became effective on 01 July 2012. The introduction of the carbon tax immediately increases the cost of electricity to a number of industries such as manufacturing and construction. Households were also affected as a result of these costs been passed through the supply chain of the affected industries. The carbon tax policy was introduced to addresses greenhouse emissions and energy consumption in Australia. However, the carbon tax policy may have introduced a number of economic risk factors to the Australian housing market, in particular the impact of housing affordability.


2018 ◽  
Vol 2018 ◽  
pp. 1-16 ◽  
Author(s):  
Yanting Huang

This paper investigates a closed-loop supply chain (CLSC) consisting of a manufacturer and two competing retailers who collect used products through trade-in strategy. Three remanufacturing models with trade-in strategy have been developed: (1) the manufacturer implements trade-in strategy (Model M), (2) single retailer collects used products through trade-in strategy (Model SR), and (3) two retailers undertake trade-in activities (Model TR). We analyze the impact of trade-in strategy on equilibrium decisions and chain members’ profits when retailing is competitive. We show that, as for the manufacturer, he prefers the case where trade-in is implemented by himself due to the direct benefits from remanufacturing, and the case of single retailer implementing trade-in strategy is the most unfavorable for the environment. We also show that, if the net value of a used product is sufficiently large, the retailer only selling products benefits from the case of the manufacturer implementing trade-in strategy because the manufacturer can coordinate both the forward and reverse flows, and Model M dominates Model TR for the retailer who undertakes both product sales and trade-in strategy. Moreover, a larger trade-in rebate can be achieved when two retailers simultaneously conduct trade-in strategy due to the intense competition between two retailers.


2016 ◽  
Vol 2016 ◽  
pp. 1-13 ◽  
Author(s):  
Jie Gao ◽  
Xiong Wang ◽  
Qiuling Yang ◽  
Qin Zhong

The dual-channel closed-loop supply chain (CLSC) which is composed of one manufacturer and one retailer under uncertain demand of an indirect channel is constructed. In this paper, we establish three pricing models under decentralized decision making, namely, the Nash game between the manufacturer and the retailer, the manufacturer-Stackelberg game, and the retailer-Stackelberg game, to investigate pricing decisions of the CLSC in which the manufacturer uses the direct channel and indirect channel to sell products and entrusts the retailer to collect the used products. We numerically analyze the impact of customer acceptance of the direct channel (θ) on pricing decisions and excepted profits of the CLSC. The results show that when the variableθchanges in a certain range, the wholesale price, retail price, and expected profits of the retailer all decrease whenθincreases, while the direct online sales price and manufacturer’s expected profits in the retailer-Stackelberg game all increase whenθincreases. However, the optimal recycling transfer price and optimal acquisition price of used product are unaffected byθ.


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