scholarly journals Achieve a low carbon supply chain through product mix

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.

Author(s):  
Mohsen Varsei ◽  
Katherine Christ ◽  
Roger Burritt

Purpose Given that currently around ten billion litres of wine are transported long distances to overseas consumers per year, the purpose of this paper is to provide a foundation for understanding the trade-offs between cost, water usage and carbon emissions in decisions about the location of wine bottling plants in a global supply chain. Design/methodology/approach This paper presents a case-based analytical modelling study and employs actual data from one of Australia’s major wine companies. A descriptive analytical model is developed for assessing wine supply chain scenarios using three indicators of economic and environmental impacts – supply chain cost, risk-weighted water usage and carbon emissions. Findings The research highlights trade-offs required when considering optimal supply chain design, and finds possibilities for reshaping a global wine supply chain in order to improve the selected economic and environmental impacts. Originality/value The originality of this paper lies in its analytical focus on examining the interplay between supply chain cost, risk-weighted water usage and carbon emissions in a global supply chain, which has not previously been addressed.


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):  
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.


2019 ◽  
Vol 30 (1) ◽  
pp. 146-179 ◽  
Author(s):  
Sudhir Ambekar ◽  
Anand Prakash ◽  
Vishal Singh Patyal

Purpose The purpose of this paper is to propose a low carbon culture (LCC) adoption model for gaining the right carbon capabilities by integrating the dimensions of flexibility or control and external or internal of competing values framework (CVF) with that of level of carbon emission (LCE). Design/methodology/approach This study reviewed literature related to low carbon supply chain, CVF and carbon capabilities to synthesize currently available frameworks for assessing culture and carbon-related insights. Based on these insights, this study proposes the carbon culture adoption model and presents some research propositions. Findings This study has extended categorization of culture suggested in CVF from four categories to eight distinct categories by adding “LCE” as a third dimension. The new categories of carbon culture are: “Red,” “Antagonist,” “Obligatory,” “Early Adopter,” “Follower,” “Transitive,” “Pragmatist” and “Green.” This categorization of organizations would help in selecting appropriate low carbon practices (LCPs). Research limitations/implications This study presents purely conceptual framework with some research propositions which needs to be empirically tested. Practical implications Organizations can formulate right policies for low carbon capabilities based on the LCC of their supply chain. Originality/value With increasing awareness about environment across stakeholders, organizations around the world are under pressure to reduce their carbon footprints. The extent of reduction in carbon footprints depends on the right capabilities across the supply chain which in turn depends on selection of the right combination of LCPs based on the supply chain culture.


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.


2018 ◽  
Vol 29 (2) ◽  
pp. 398-428 ◽  
Author(s):  
Chiranjit Das ◽  
Sanjay Jharkharia

Purpose The purpose of this paper is to review the relevant literature on low carbon supply chain management (LCSCM) and classify it on contextual base. It also aims at identifying key decision-making issues in LCSCM. This paper also highlights some of the future challenges and scope of research in this domain. Design/methodology/approach A content analysis is carried out by systematically collecting the literature from major academic sources over a period of 18 years (2000-2017), identifying structural dimensions and classifying it on contextual base. Findings There is an increasing trend of research on LCSCM, but this research is still in a nascent stage. All supply chain functions such as supplier selection, inventory planning, network design and logistic decisions have been redefined by integrating emissions-related issues. Research limitations/implications Limitation of this study is inherent in its unit of analysis. Only peer-reviewed journal articles published in English language have been considered in this study. Practical implications Findings of prior studies on low carbon inventory control, transportation planning, facility allocation, location selection and supply chain coordination have been highlighted in this study. This will help supply chain practitioners in decision making. Originality/value Though there are an increasing number of studies about carbon emission-related issues in supply chain management, the present literature lacks to provide a review of the overarching publications. This paper addresses this gap by providing a comprehensive review of literature on emissions-related issues in supply chain management.


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.


2018 ◽  
Vol 52 (4-5) ◽  
pp. 1043-1067 ◽  
Author(s):  
Yuyao Fan ◽  
Min Wang ◽  
Lindu Zhao

The increasing amount of carbon emissions has caused global warming and challenged the sustainable development of environment. Governments around the world have implemented carbon policies including carbon cap-and-trade policy. In this paper, we focus on how a two-echelon supply chain manages its carbon footprints in production and inventory under carbon cap-and-trade policy. We extend the classical EOQ (economic order quantity) model and study decisions on production-inventory, carbon trading and emission reduction investment in the decentralized and centralized situations. The results show that emission permit sharing can effectively reduce the total cost and total carbon emissions of the supply chain. Moreover, the manufacturer’s emission reduction effort rises with the increase of the buying and selling prices of emission permits under centralized decision-making. In addition, a compensation mechanism is proposed for the centralized supply chain with emission permit sharing. It is observed that the buying and selling prices of emission permits have a positive influence on the permit sharing price in the compensation mechanism. Meanwhile, the retailer pays less for using the emission permits if it has a higher carbon cap, while the manufacturer with a higher carbon cap is more capable to provide a high compensation for the retailer.


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