Manufacturing and selling tactics for a green supply chain under a green cost sharing and a refund agreement

2020 ◽  
Vol 15 (4) ◽  
pp. 1419-1450 ◽  
Author(s):  
Ata Allah Taleizadeh ◽  
Mahsa Noori-Daryan ◽  
Shib Sankar Sana

Purpose This paper aims to deal with optimal pricing and production tactics for a bi-echelon green supply chain, including a producer and a vendor in presence of three various scenarios. Demand depends on a price, refund and quality where the producer controls quality and the vendor proposes a refund policy to purchasers to encourage them to order more. Design/methodology/approach In the first scenario, the members seek to optimize their optimum decision variables under a centralized decision-making method while in the second scenario, a decentralized system is assumed where the members make a decision about variables and profits under a non-cooperative game. In the third scenario, a cost-sharing agreement is concluded between the members to provide a high-quality item to the purchasers. Findings The performance of the proposed model is investigated by illustrating a numerical example. A sensitivity analysis of some key parameters has been done to study the effect of the changes on the optimal values of the decision variables and profits. From sensitivity analysis, the real features are observed and mentioned in this section. Originality/value This research examines the behavior of partners in a green supply chain facing with a group of purchasers whose demand is the function of a price, greenery degree and refund rate. This proposed mathematical model is developed and analyzed which has an implication in supply chain model.

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vinay Ramani ◽  
Sanjeev Swami ◽  
Debabrata Ghosh

Purpose The purpose of this paper is to study the impact of collaboration between supply chain entities in a dyadic setting where the manufacturer invests in greening and technology adoption effort leading to a price premium effect for the supply chain players. Design/methodology/approach The paper uses game theoretic approach to analyze the model of inter-firm interaction in a vertical channel setting consisting of a retailer and manufacturer. The paper studies strategic decisions of the channel members in a decentralized and centralized structure and extends this to decision making under contractual settings. Findings A two-part tariff completely coordinates the green supply chain, while a cost sharing and revenue sharing contract only achieve partial coordination. Nevertheless, a cost sharing, as well as a revenue sharing contract, increases the greening and technological adoption effort by the manufacturer while yielding the supply chain members a strictly larger profit. Furthermore, a revenue sharing contract in comparison to a cost sharing contract, leads to a larger greening and technological adoption effort by the manufacturer, lower wholesale and retail prices and a strictly larger profit for both the manufacturer and the retailer. Originality/value This paper contributes to the green supply chain pricing, technology and contract literature considering strategic interactions between a manufacturer and retailer in a supply chain under price premium effects of greening activities and technological advancements.


2020 ◽  
Vol 2020 ◽  
pp. 1-23
Author(s):  
Mengyue Zhai ◽  
Mingwu Liu ◽  
Hong Fu ◽  
Qiaoling Fu

This paper considers a multinational green supply chain (MGSC), composed of a manufacturer and a foreign retailer affected by import tariff. The main theme of this paper is to explore supply chain decisions and coordination contract. Four decision models were investigated: (1) the centralized decision supply chain model (model CS), (2) the decentralized decision supply chain model (model DS), (3) the R&D cost sharing contract model (model RD) with the retailer sharing a portion of green R&D cost, and (4) the quantity discount-cost sharing contract model (model QD), which combined a quantity discount contract with a cost sharing contract. The equilibrium decisions of these models were derived. The R&D cost sharing contract was found to improve greenness and performance of the supply chain but cannot reach the optimal performance compared to the centralized decision model. While the quantity discount-cost sharing contract can achieve a perfect coordination of MGSC. Furthermore, import tariff has an adverse effect on the performance of MGSC. The increase in tariff shrinks the threshold of the highest wholesale price and quantity discount coefficient offered by the manufacturer, which will hamper the cooperation of supply chain. However, the enhancement of consumers’ green preference is conducive to encourage the retailer to participate in cooperation and smoothen the adverse effects of tariff fluctuation. In the same model, the adverse effect of tariff on product greenness and the retail price does not change with the increase in its value. However, the adverse effect on the green performance price ratio and the profits from all parties in the supply chain are slow.


Humanomics ◽  
2017 ◽  
Vol 33 (2) ◽  
pp. 189-210 ◽  
Author(s):  
Issa Salim Moh’d ◽  
Mustafa Omar Mohammed ◽  
Buerhan Saiti

Purpose This paper aims to identify the appropriate model to address the financial challenges in agricultural sector in Zanzibar. Since the middle of 1960, clove production has continually and significantly decreased because of some problems and challenges that include financial ones. The financial intermediaries such as banks, cooperatives and micro-enterprises provide micro-financing to the farmers with high interest rates along with collateral requirements. The numerous programmes, measures and policies adopted by the relevant parties to find out the solutions to the dwindling clove production have failed. Design/methodology/approach The authors will review and examine several existing financial models, identify the issues and challenges of the current financial models and propose an appropriate Islamic financing model. Findings The numerous programmes, measures and policies adopted by the relevant parties to find out the solutions to the dwindling clove production have failed. This study, therefore, proposed a Waqf-Muzara’ah-supply chain model to address the financial challenge. Partnership arrangement is also suggested in the model to mitigate the issues of high interest rates and collateral that constrains the financial ability of the farmers and their agricultural output. Originality/value The contribution of the agricultural sector to the economic development of Zanzibar Islands is considerable. As one of the important agricultural sectors, the clove industry was the economic backbone of the government of Zanzibar. This study is believed to be a pioneering work; hence, it is the first study that investigates empirically the challenges facing the clove industry in Zanzibar.


2014 ◽  
Vol 5 (2) ◽  
pp. 312-337 ◽  
Author(s):  
Hardeep Chahal ◽  
Ramesh Dangwal ◽  
Swati Raina

Purpose – The purpose of the study is twofold. First, to examine the domain of green marketing construct in the context of small and medium enterprises (SMEs) operating in emerging economies (i.e. India) across electrical industries and, second, to assess its impact on the SMEs performance. Design/methodology/approach – All the owners of electrical industries (SMEs) operating in Jammu District, that is, 152, were contacted using census method. Findings – The study identifies and confirms five factors, namely, greening the process, green supply chain management, green strategic policy initiative, proactive energy conservation and green innovation of green marketing as important dimensions of green marketing orientation (GMO) scale. All the dimensions of the GMO scale have positive and significant impacts on performance of the firms. In addition, there exists stronger impact of green marketing dimensions on the customer business to business (B2B) satisfaction and employee retention. Research limitations/implications – The research has certain unavoidable limitations. First, the study is based on only one sector, that is, electrical industries operating in developing industrial region of India and hence future research is suggested to comprehend green marketing in other green-savvy manufacturing sectors like pharmaceutical sector and service sector like hotels and hospitals. Further, the study has focussed on the development of GMO scale and future studies need to extend research to include variables like green satisfaction, green trust and green loyalty to understand their mediating role in green marketing and performance relationship. Furthermore, the moderating role of variables such as nature and age of the SMEs can also be studied in future research. Practical implications – GMO allows managers to understand how their firms facilitate green environment and they affect the business outcomes. Furthermore, GMO takes into consideration all important aspects (greening the process, green supply chain management, green strategic policy initiatives, proactive energy conservation and green promotion) which provide better explanatory power and identification of priority areas for managerial attention. GMO can be used by managers to determine which strategies and practices will have the most positive influence on employees’ outcome. Originality/value – This paper can help managers in identifying the perspectives of GMO in electrical sector for the developing countries. Unlike the three dimensions confirmed by studies, this study established five dimensions of green marketing, namely, greening the process green supply chain management, green strategic policy initiatives, proactive energy conservation and green promotion.


2018 ◽  
Vol 25 (8) ◽  
pp. 2660-2687 ◽  
Author(s):  
Sachin Kumar Mangla ◽  
Sunil Luthra ◽  
Suresh Jakhar

PurposeThe purpose of this paper is to facilitate green supply chain (GSC) managers and planners to model and access GSC risks and probable failures. This paper proposes to use the fuzzy failure mode and effects analysis (FMEA) approach for assessing the risks associated with GSC for benchmarking the performance in terms of effective GSC management adoption and sustainable production.Design/methodology/approachInitially, different failure modes are defined using FMEA analysis, and in order to decide the risk priority, the risk priority number (RPN) is determined. Such priority numbers are typically acquired from the judgment decisions of experts that could contain the element of vagueness and imperfection due to human biases, and it may lead to inaccuracy in the process of risk assessment in GSC. In this study, fuzzy logic is applied to conventional FMEA to overcome the issues in assigning RPNs. A plastic manufacturer GSC case exemplar of the proposed model is illustrated to present the authenticity of this method of risk assessment.FindingsResults indicate that the failure modes, given as improper green operating procedure, i.e. process, operations, etc. (R6), and green issues while closing the loop of GSC (R14) hold the highest RPN and FRPN scores in classical as well as fuzzy FMEA analysis.Originality/valueThe present research work attempts to propose an evaluation framework for risk assessment in GSC. This paper explores both sustainable developments and risks related to efficient management of GSC initiatives in a plastic industry supply chain context. From a managerial perspective, suggestions are also provided with respect to each failure mode.


2018 ◽  
Vol 13 (3) ◽  
pp. 605-625 ◽  
Author(s):  
Mohammad Khalilzadeh ◽  
Hadis Derikvand

Purpose Globalization of markets and pace of technological change have caused the growing importance of paying attention to supplier selection problem. Therefore, this study aims to choose the best suppliers by providing a mathematical model for the supplier selection problem considering the green factors and stochastic parameters. This paper aims to propose a multi-objective model to identify optimal suppliers for a green supply chain network under uncertainty. Design/methodology/approach The objective of this model is to select suppliers considering total cost, total quality parts and total greenhouse gas emissions. Also, uncertainty is tackled by stochastic programming, and the multi-objective model is solved as a single-objective model by the LP-metric method. Findings Twelve numerical examples are provided, and a sensitivity analysis is conducted to demonstrate the effectiveness of the developed mathematical model. Results indicate that with increasing market numbers and final product numbers, the total objective function value and run time increase. In case that decision-makers are willing to deal with uncertainty with higher reliability, they should consider whole environmental conditions as input parameters. Therefore, when the number of scenarios increases, the total objective function value increases. Besides, the trade-off between cost function and other objective functions is studied. Also, the benefit of the stochastic programming approach is proved. To show the applicability of the proposed model, different modes are defined and compared with the proposed model, and the results demonstrate that the increasing use of recyclable parts and application of the recycling strategy yield more economic savings and less costs. Originality/value This paper aims to present a more comprehensive model based on real-world conditions for the supplier selection problem in green supply chain under uncertainty. In addition to economic issue, environmental issue is considered from different aspects such as selecting the environment-friendly suppliers, purchasing from them and taking the probability of defective finished products and goods from suppliers into account.


Author(s):  
Abednico Lopang Montshiwa

Purpose This study aims to present a competitive advantages framework suited for disaster prone regions in the era of climate change, present supply chain cooperation (SCC) as an integral part of GrSCM within the automobile industry and evaluate the competitive advantages framework merits based on SCC as a new implementation tool. Design/methodology/approach In an effort to address limited green supply chain management implementation strategies in disaster prone regions, the paper presents SCC as an economic, social and political implementation tool. To explore this; the study introduces SCC in a three-phase competitive advantages model adopted from the Barney 1995 model (with slight differences). Smart PLS 3.0 software package was adopted to carry out multi-variable data analysis. The study’s assumption is a capital economic system and bases its argument of analysis on stockholder theoretical lenses. Findings Big company size does not significantly affect SCC, suggesting that companies of all size can organize and enhance their network to be cooperative. Companies with cooperative supply chain network tend to have competitive advantages. SCC is also a viable way to manage business risks, be there internal or external. Research limitations/implications One of the study’s limitation is the stockholder theory it adopts, which shoulders its assumptions on a capital economic model of operation. Indeed, the study covered China, which is seen to be a communist-based economy. Another study’s limitation is that it narrows its data collection to disaster prone areas as documented by Guha-Sapir et al. (2012). Consequently, the findings of this study might be only applicable to areas that experience significant level of disruptions usually caused by disaster incidents. Originality/value The study is also the first of its kind to propose a model for automobile manufacturing in disaster prone regions. This is done by introducing SCC as an economic, social and political factor, while risk ranking is introduced as an environmental factor to constitute the external changes that Barney 1995 introduced.


2022 ◽  
Vol 9 ◽  
Author(s):  
Fuqiang Wang ◽  
Huimin Li ◽  
Yongchao Cao ◽  
Chengyi Zhang ◽  
Yunlong Ran

Knowledge sharing (KS) in the green supply chain (GSC) is jointly determined by the KS efforts of suppliers and manufacturers. This study uses the differential game method to explore the dynamic strategy of KS and the benefits of emission reduction in the process of low carbon (LC) technology in the GSC. The optimal trajectory of the knowledge stock and emission reduction benefits of suppliers and manufacturers under different strategies are obtained. The validity of the model and the results are verified by numerical simulation analysis, and the sensitivity analysis of the main parameters in the case of collaborative sharing is carried out. The results show that in the case of centralized decision-making, the KS efforts of suppliers and manufacturers are the highest, and the knowledge stock and emission reduction benefits of GSC are also the best. The cost-sharing mechanism can realize the Pareto improvement of GSC’s knowledge stock and emission reduction benefits, but the cost-sharing mechanism can only increase the supplier’s KS effort level. In addition, this study found that the price of carbon trading and the rate of knowledge decay have a significant impact on KS. The study provides a theoretical basis for promoting KS in the GSC and LC technology innovation.


Author(s):  
Junjun Liu ◽  
Yunting Feng ◽  
Qinghua Zhu ◽  
Joseph Sarkis

Purpose Green supply chain management (GSCM) and the circular economy (CE) overlap but also differ. The purpose of this paper is to clarify linkages between these two concepts. It identifies mutual theory applications used to study GSCM and CE. Design/methodology/approach A systematic literature review is conducted to identify theories from GSCM and CE studies. A critical analysis explores the theories that can provide mutual applications between GSCM and CE fields. Propositions are developed. Findings In all, 12 theories are applied in both GSCM and CE studies. Several theories are only applied in GSCM studies, but can help to advance CE study. These theories include complexity, transaction cost economics, agency, and information theories. Each of the eight theories only applied to CE can potentially advance GSCM study. Research limitations/implications The findings contribute to further theory development for both GSCM and CE study. A methodological review can advance theoretical development and cross-pollination in both fields. Originality/value This work is the first study to explicitly explore linkages of GSCM and CE from a theoretical perspective.


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