The impact of government subsidy and tax policy on the competitive decision-making of remanufacturing supply chains

2018 ◽  
Vol 12 (1) ◽  
pp. 18-29 ◽  
Author(s):  
Zhen Li ◽  
Wei Zheng ◽  
Qingfeng Meng ◽  
Shuai Jin
Keyword(s):  
Decision Making ◽  
Supply Chains ◽  
Tax Policy ◽  
Government Subsidy ◽  
The Impact

Determining a reasonable concession period for risky transportation BOT projects with government subsidies based on cumulative prospect theory

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jian Guo ◽  
Junlin Chen ◽  
Yujie Xie
Keyword(s):  
Decision Making ◽  
Traffic Volume ◽  
Decision Makers ◽  
Government Subsidy ◽  
Contingency Analysis ◽  
Content Type ◽  
Government Subsidies ◽  
Concession Period ◽  
Private Investors ◽  
The Impact

PurposeThis paper explores the impact of both government subsidies and decision makers' loss-averse behavior on the determination of transportation build-operate-transfer (BOT) concession periods based on cumulative prospect theory (CPT). The prospect value of a transportation project under traffic risk can be formulated according to the value function for gains and losses and the decision weight for gains and losses. As an extra income for investors, government subsidy is designed for highly risky aspects of BOT transportation projects: uncertain initial traffic volumes and fluctuating growth rates.Design/methodology/approachA decision-making model determining the concession period of a transportation BOT project is proposed by using the Monte-Carlo simulation method based on CPT, and the effects of risky behaviors of private investors on concession period decision making are analyzed. A subsidy method related to the internal rate-of-return (IRR) corresponding to a specific initial traffic volume and growth rate is proposed. The case of an actual BOT highway project is examined to illustrate how the method proposed can be used to determine the concession period of a transportation BOT project considering decision makers' loss-averse behavior and government subsidy. Contingency analysis is discussed to cope with possible misestimating of key factors such as initial traffic volume and cost coefficients. Sensitivity analysis is employed to investigate the impact of CPT parameters on the concession period decisions. An actual BOT case which failed to attract private capital is introduced to show the practical application. The results are then interpreted to conclude this paper.FindingsBased on comparisons drawn between a concession period decision-making model considering the psychological behaviors of decision makers and a model not considering them, the authors conclude that the concession period based on CPT is distinctly different from that of the loss-neutral model. The concession period based on CPT is longer than the loss-neutral concession period. That is, loss-averse private investors tend to ask for long concession periods to make up for losses they will face in the future. Government subsidies serve as extra income for investors, allowing appointed profits to be secured sooner. For the benefit side of contingency variables, the normal state of initial traffic volume, average annual traffic growth rate and bias degree and the government subsidy need to be paid close attention during the project life span. For the cost side of contingency variables, the annual operating cost variable has a significant impact on the length of predicted concession period, while the large-scale cost variable has minor impact.Originality/valueWith an actual BOT highway project, the determination of transportation BOT concession periods based on the psychological behaviors of decision makers is analyzed in this paper. As the psychological behaviors of decision makers heavily impact the decision-making process, the authors analyze their impacts on concession period decision making. Government subsidy is specifically designed for various states of initial traffic volume and fluctuating growth rates to cope with corresponding high risks and mitigate private investors' loss-averse behaviors. Contingency analysis and sensitivity analysis are discussed as the estimated values of parameters may not be authentic in actual situations.

scholarly journals If We Could Choose The Way We Pay: The Impact Of Decision Complexity On Tax Scheme Preference

2011 ◽  
Vol 22 (3) ◽  
Author(s):  
Jeffrey P. Katz ◽  
Richard L. Ott
Keyword(s):  
Decision Making ◽  
Experimental Design ◽  
Tax Policy ◽  
Organizational Psychology ◽  
Tax Structure ◽  
Business Decisions ◽  
Tax Simplification ◽  
Policy Impacts ◽  
Decision Complexity ◽  
The Impact

A continuing debate exists about how the complex U.S. tax code has resulted in counter-productive business decisions. Our study examines how tax policy impacts taxpayer decision-making. We present a model addressing factors impacting taxpayer decision-making and test our resulting hypotheses using an experimental design drawn from industrial and organizational psychology. We find that the context of the taxpayer's personal situation significantly affects the decision to favor changes in tax policy. Consistent with our hypotheses, we find that taxpayers having a more complex tax situation will tend to support a tax simplification proposal less than those with simpler tax situations. Our study provides unique evidence that taxpayers having more complex tax situations feel more in control of their decisions under the existing tax structure than those having simpler tax situations. Implications for decision-making researchers and tax policymakers are offered.

scholarly journals The impact of government subsidy on supply Chains’ sustainability innovation

Omega ◽  
2019 ◽  
Vol 86 ◽  
pp. 42-58 ◽  
Author(s):  
Jen-Yi Chen ◽  
Stanko Dimitrov ◽  
Hubert Pun
Keyword(s):  
Supply Chains ◽  
Government Subsidy ◽  
The Impact

Towards more balanced sourcing strategies – are supply chain risks caused by the COVID-19 pandemic driving reshoring considerations?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Remko van Hoek ◽  
David Dobrzykowski
Keyword(s):  
Decision Making ◽  
Risk Management ◽  
Supply Chain ◽  
Supply Chains ◽  
Research Process ◽  
Manufacturing Companies ◽  
Content Type ◽  
Management Techniques ◽  
The Many ◽  
The Impact

Purpose Reshoring is one of the supply chain risk management techniques suggested in literature. However, literature suggests that the decision-making involved in reshoring is complex and not fully understood. In the context of the COVID-19 pandemic, reshoring may represent a way to reduce reliance on global sources and improve resilience of their supply chains. This paper aims to explore if the pandemic is driving reshoring decisions and if the pandemic will actually lead to companies reshoring parts of their supply chain. Design/methodology/approach This paper critically engages with senior(-most) supply chain managers from three manufacturing companies as they proceed through reshoring decision-making. This enables to develop experiential knowledge about reshoring decision-making processes and their context, as well as insights into the relevance of existing knowledge about reshoring. While not a full multiple case study, the opportunity to engage directly with senior(-most) supply chain managers as they consider reshoring, enables near real-time learning. Not only is reshoring a very timely topic literature has also called for more event-based empirical research. Further to that, it is hoped that this can complement this special issue and support, in a timely manner, the many researchers that are actively studying the impact of the pandemic on supply chains. Findings Reshoring was being actively considered by all three companies during the research process in Q3 and Q4 of 2020. During this period the pandemic has not yet led to substantial implementation of reshoring, at least by the companies studied in this paper. In response to tariffs on Chinese imports, companies had been diversifying their supply base away from China, but doing so by developing alternative, global sources. Additionally, companies are using alternative risk management techniques, such as supplier collaboration, in the short to medium term. Reshoring decision-making is indeed found to be complex and requires a longer-term time horizon for decision-making and implementation. Logistical challenges and growth in demand do drive a willingness of consumers to pay a premium for locally sourced products. However, when supply normalizes these considerations might lose relevance well before reshoring decision-making and implementation can be completed. Originality/value This paper studies reshoring in a real-world setting, learning directly from insights from industry as they emerge. This paper develops four extensions to existing knowledge, develop these in frameworks and hope that this will support ongoing consideration in industry and support the many researchers that are active in this domain today. This paper also suggests several directions for further research.

scholarly journals Corporate Governance and Low Carbon Supply Chains: Why Integrity Matters?

2020 ◽  
Vol 3 (2) ◽  
Author(s):  
Norma Mohter ◽  
Yudi Fernando
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Supply Chain ◽  
Firm Performance ◽  
Supply Chains ◽  
Low Carbon ◽  
Board Of Director ◽  
Carbon Supply ◽  
Social Expectation ◽  
The Impact

In this study, we aimed to understand the role of integrity in low carbon supply chain and their benefits towards firm performance and corporate governance. This paper also discussed the importance of Board of Director (BoD) in decision making in the supply chain.  As stakeholders continue to increasingly emphasize integrity practices in their supply chains, the firm should understand and practice the integrity especially involved low carbon supply chain (LCSC) by provided accurate carbon disclosure and report carbon verification and etc. This is important to shareholder especially Board of Director to make sure the firm performance meet their expectation. By monitoring the decision making in the low carbon supply chain, the BoD believe can avoid unethical issues such as corruption, manipulation and fraud. Practising integrity in the supply chain, the firm will obtain many advantages in their firm performance.  The firm’s performance will increase other than being more trustable and gain competitive advantages from the competitor. The BoD is concern about the impact of decision making on society.  The BoD believe by being integrity in the firm’s management they will meet the social expectation.

scholarly journals Closed Product Life Cycle as a Basis of the Circular Economy

2021 ◽  
Vol 5 (4) ◽  
pp. 36-50
Author(s):  
Maria Vetrova ◽  
Dinara Ivanova
Keyword(s):  
Decision Making ◽  
Life Cycle ◽  
Supply Chains ◽  
Circular Economy ◽  
Product Life Cycle ◽  
Digital Technologies ◽  
Economic Feasibility ◽  
Decision Support Model ◽  
Product Life ◽  
The Impact

Objective – The circular economy aims to preserve the value of products and materials within a closed supply chain. The existing models and decision-making methods for managing the end of the product life cycle are mostly focused on the economic aspects. While the circular economy is aimed at combining environmental, economic and social goals. This article aims to develop a model for enterprise decision-making on the disposal of used products, taking into account socio-environmental and economic factors. Methodology/Technique – The article analyzes the impact of digital technologies on the formation of closed supply chains and the development of a circular economy. At the same time, special attention is focused on the model of a closed product life cycle, as a fundamental element in the formation of a circular economy at the micro and nano levels, as well as the importance of using digital technologies at all stages of the product life cycle. Findings –The methods of product management at the end of the life cycle studied in the article have made it possible to form a simulation decision support model regarding the method of product disposal, taking into account environmental and economic feasibility. Novelty – This study identified the main trends in the development of closed supply chains under the influence of digital technologies in the context of a circular economy. Type of Paper: Review JEL Classification: F42, F43 Keywords: Circular Economy; Digital Technology; Decision-making Model; Closed-loop Supply Chains Reference to this paper should be made as follows: Vetrova, M; Ivanova, D. (2021). Closed Product Life Cycle as a Basis of the Circular Economy, Journal of Business and Economics Review, 5(4) 36–50. https://doi.org/10.35609/jber.2021.5.4(4)

scholarly journals Application of Agent Based Simulation to analyze the impact of tax policy on soybean supply chain

2018 ◽  
Vol 15 (2) ◽  
pp. 193-208
Author(s):  
Carlos Henrique Viégas De Rosis ◽  
Marco Aurélio De Mesquita
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Tax Policy ◽  
Agent Based ◽  
Tax Legislation ◽  
Supply Chain Efficiency ◽  
Trade Offs ◽  
Grain Distribution ◽  
Behavioral Validation ◽  
The Impact

This work seeks to explore and demonstrate the use of Agent Based Simulations (ABS) in modelling and simulating supply chains. Such methodology was applied to develop a model to evaluate the impact of current tax policies in soy supply chain in Brazil. The model brought interesting insights on how the country’s current tax structure induces logistics and tributary trade-offs, therefore generating a suboptimal grain distribution. This is accomplished by going through the conception and implementation of an Agent Based Model. First there is the definition and delimitation of the main agents acting upon soy’s supply chain, such as producers, trader and consumers. Those agents then have their behaviors studied and translated into programable patterns. Finally, the model considers the environmental interactions with the mentioned players, including the effects of infrastructure capacities, transportation costs, storage costs and tax legislation. After quantitative and behavioral validation, the simulation is then able to mimic the actual allocation of corn, soy and soymeal productions in their respective supply chains. This would allow inferring how the system could work in different tax conditions, thus quantifying the tributary impact in terms of congestions, idle infrastructure and delays. The analysis of such results points out that a path dependant tax system may induce agents to opt for inefficient logistic solutions, if such alternatives are cheaper when taking taxes into account. From those simulations it is possible to conclude that there are opportunities for supply chain efficiency gains in the design of a new tax policy.

Sign in / Sign up

Export Citation Format

Share Document