Matching-Game Approach for Green Technology Investment Strategies in a Supply Chain under Environmental Regulations

2021 ◽  
Author(s):  
Li Liu ◽  
Zhe Wang ◽  
Zaisheng Zhang
Keyword(s):  
Supply Chain ◽  
Environmental Regulations ◽  
Green Technology ◽  
Investment Strategies ◽  
Technology Investment ◽  
Matching Game

scholarly journals Optimal Strategies for Low Carbon Supply Chain with Strategic Customer Behavior and Green Technology Investment

2016 ◽  
Vol 2016 ◽  
pp. 1-13 ◽  
Author(s):  
Wen Jiang ◽  
Xu Chen
Keyword(s):  
Supply Chain ◽  
Carbon Emissions ◽  
Optimal Strategies ◽  
Revenue Sharing ◽  
Green Technology ◽  
Customer Behavior ◽  
Investment Strategies ◽  
Low Carbon ◽  
Technology Investment ◽  
Carbon Supply

Climate change is mainly caused by excessive emissions of carbon dioxide and other greenhouse gases. In order to reduce carbon emissions, cap and trade policy is implemented by governments in many countries, which has significant impacts on the decisions of companies at all levels of the low carbon supply chain. This paper investigates the decision-making and coordination of a low carbon supply chain consisting of a low carbon manufacturer who produces one product and is allowed to invest in green technology to reduce carbon emissions in production and a retailer who faces stochastic demands formed by homogeneous strategic customers. We investigate the optimal production, pricing, carbon trading, and green technology investment strategies of the low carbon supply chain in centralized (including Rational Expected Equilibrium scenario and quantity commitment scenario) and decentralized settings. It is demonstrated that quantity commitment strategy can improve the profit of the low carbon supply chain with strategic customer behavior. We also show that the performance of decentralized supply chain is lower than that of quantity commitment scenario. We prove that the low carbon supply chain cannot be coordinated by revenue sharing contract but by revenue sharing-cost sharing contract.

scholarly journals Green Product Design and Pricing Decisions in a Risk-Averse Supply Chain under Alternative Power Structures

2021 ◽  
Vol 2021 ◽  
pp. 1-20
Author(s):  
Tiantian Xu ◽  
Jizhou Zhan
Keyword(s):  
Supply Chain ◽  
Product Design ◽  
Power Structure ◽  
Green Technology ◽  
Green Product ◽  
Risk Averse ◽  
Sustainable Supply Chain ◽  
Power Structures ◽  
Technology Investment ◽  
Green Product Design

Motivated by the prevailing green product design and the different supply chain power structures, this paper aims to analyse the role of power relationship and risk-aversion in economic and environmental performance of sustainable supply chain. Three game theory models, including the manufacturer Stackelberg (MS) model, retailer Stackelberg (RS) model, and vertical Nash (VN) model, are developed to study the pricing and greenness level decisions in a two-echelon sustainable supply chain, where one risk-averse manufacturer sells green products through one risk-averse retailer. This paper shows that when selling through a more risk-averse retailer, the risk-averse manufacturer prefers to provide a product with a higher level of greenness and achieve a greater utility regardless of the power structure. A manufacturer as a follower may have stronger motivation to increase the product’s level of greenness than one in a more balanced supply chain when the green technology investment coefficient is sufficiently low. With regard to the power structure, the channel leadership is not necessary to for the manufacturer to achieve higher utility, which depends on the green technology investment coefficient, greenness level sensitivity, and players’ risk aversion.

scholarly journals The Implications of Vertical Strategic Interaction on Green Technology Investment in a Supply Chain

2020 ◽  
Vol 12 (18) ◽  
pp. 7441
Author(s):  
Simeng Wang ◽  
Yongsheng Cheng ◽  
Xiaoxian Zhang ◽  
Chenchen Zhu
Keyword(s):  
Supply Chain ◽  
Strategic Interaction ◽  
Green Technology ◽  
Theoretic Approach ◽  
Strategic Interactions ◽  
Green Technologies ◽  
Double Marginalization ◽  
Technology Investment ◽  
Game Theoretic ◽  
The Right

Numerous studies on supply chains have indicated that vertical strategic interactions usually involve the classical double marginalization problem, leading to a downward distortion in profitability. However, at present, the implications of vertical strategic interactions for green technology investment in a supply chain are not all that clear. In particular, such a vertical interaction not only can translate into profits between different parties, but usually also involves differentiated environmental performance. A question which arises is: who is the right undertaker for green technology investment in a supply chain, the supplier or retailer? To answer this question, we highlight the implications of vertical strategic interaction for green technology investment in a supply chain. To fill this gap, using a game-theoretic approach, we formulate two models: (a) Model M, in which an upstream manufacturer adopts technologies to meet consumer demand; and (b) Model R, where a retailer integrates environmental concerns into their supply chain decisions. We find that the retailer, who is closer to the customer, is the more effective undertaker for green technology investment, as this not only creates higher profitability for both parties, but also achieves a more sustainable scheme for our environment. When green technologies are invested in by the manufacturer, the double marginalization effect not only may downward-distort their economic performance but can also reduce the equilibrium of product greenness.

scholarly journals Green Technology Investment in a Decentralized Supply Chain under Demand Uncertainty

2021 ◽  
Vol 13 (7) ◽  
pp. 3752
Author(s):  
Cong Wang ◽  
Zongbao Zou ◽  
Shidao Geng
Keyword(s):  
Supply Chain ◽  
Environmental Sustainability ◽  
Demand Uncertainty ◽  
Green Technology ◽  
Investment Efficiency ◽  
Theoretic Approach ◽  
Technology Investment ◽  
Decentralized Supply Chain ◽  
Game Theoretic ◽  
And Performance

Green technology investment is an important factor that influences the sustainability and performance of the supply chain. In this paper, we use the game-theoretic approach, which is quite suitable to operation decision research, to model a supply chain consisting of one supplier and one retailer and discuss who should invest in green technology in a decentralized supply chain under demand uncertainty. An important result we found is that the retailer has a stronger investment motivation and higher investment efficiency compared to the supplier. The retailer also tends to invest in green technology himself when customers are not so sensitive to the product’s retail price. We analyze the supply chain sustainability, and find that high levels of green technology investments are not always necessarily good for environmental sustainability, it depends on the environmental impact’s sensitivity to green technology. Lastly, a joint investment mechanism is designed to induce the retailer to join in the green technology investment when he has no investment intention, and that realizes a Pareto improvement of the supply chain. Based on the results, we recommend designing more incentive mechanisms to induce the retailers to join in the green technology investment according to supply chain conditions.

scholarly journals Fine Dust and Sustainable Supply Chain Management in Port Operations: Focus on the Major Cargo Handled at the Dry Bulk Port

2020 ◽  
Vol 8 (7) ◽  
pp. 530
Author(s):  
Jeho Hwang ◽  
Sihyun Kim
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Local Community ◽  
Local Level ◽  
Green Technology ◽  
Control Measures ◽  
Fine Dust ◽  
Causality Test ◽  
Sustainable Operations ◽  
Port Operations

Local residents living adjacent to ports are directly affected by the fine dust generated from the port operations. There is a need to prepare detailed measures according to cargo type given the high correlation between the types of dust-producing cargo primarily managed at ports and local industries. This study attempts to establish the attributes of the cargo handled at ports and the relationship between supply chains built for local key industries and the air quality of the local community. It aims to ascertain which cargo needs managing preemptively at the local level, based on the major cargo types handled in a port. A correlation analysis and Granger causality test were performed to investigate the causality between the factor of cargo and fine dust concentrations. The results in this study indicate the necessity for intensive management of scrap metal cargo among the major cargo handled at the target port, which confirms the large effect of management on fine dust reduction, as well as on reduction efficiency. The results suggest requirements to expand the regulations on the emissions of supply chains by cargo type, not by industry type. Additionally, it is required to minimize the blind spots of management and form an eco-friendly supply chain by introducing green technology. The preparation of emission control measures is also necessary. The findings provide useful insights for the sustainable operations of the local supply chain around the target port and will help the strategic agenda for future improvement.

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.

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