Supply chain coordination under nonlinear cap and trade carbon emission function and demand uncertainty

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jafar Heydari ◽  
Zahra Mirzajani
Keyword(s):  
Economic Development ◽  
Supply Chain ◽  
Carbon Emission ◽  
Revenue Sharing ◽  
Raw Material ◽  
Market Demand ◽  
Cap And Trade ◽  
Content Type ◽  
Sustainable Economic Development ◽  
Development Goals

Purpose This paper investigates to find whether it is possible to align the interests of a small and medium manufacturing enterprise (SMME) with its raw material supplier in a manufacturing supply chain (MSC) to achieve a sustainable solution. To this end, current study examines the coordination of an MSC under cap and trade consisting of a raw material supplier and a carbon-emitting SMME confronting a stochastic demand. Design/methodology/approach The model is developed under both the decentralized and centralized decision-making scenarios. Under the investigated model, the SMME decides on both production quantity and sustainability level simultaneously. To achieve coordination and align the interests of both MSC members toward sustainable economic development goals, a customized revenue-sharing contract is developed. Findings Although the centralized model is profitable for the MSC, it makes a loss for the SMME compared to the decentralized scenario. The revenue-sharing agreement is able to create coordination among the MSC members and optimize profitability and sustainability. The established revenue-sharing guarantees a Pareto-improving situation for both members. Applying the established contract not only reduces shortage occasions but also results in more sustainability levels, which in turn means movement toward attaining sustainable economic development goals. Originality/value Unlike previous studies, carbon emission is assumed as a nonlinear decreasing function of the sustainability level which is a more realistic case. In accordance with SMMEs business environments, the market demand is also assumed uncertain. In addition, instead of assuming an investment cost for sustainability, the authors assumed unit production/purchasing costs as functions of product sustainability level.

scholarly journals Three-level supply chain coordination of fresh agricultural products in the Internet of Things

2017 ◽  
Vol 117 (9) ◽  
pp. 1842-1865 ◽  
Author(s):  
Bo Yan ◽  
Xiao-hua Wu ◽  
Bing Ye ◽  
Yong-wang Zhang
Keyword(s):  
Supply Chain ◽  
Internet Of Things ◽  
Supply Chain Coordination ◽  
Revenue Sharing ◽  
Agricultural Product ◽  
The Internet ◽  
Market Demand ◽  
Content Type ◽  
Revenue Sharing Contract ◽  
The Internet Of Things

Purpose The Internet of Things (IoT) is used in the fresh agricultural product (FAP) supply chain, which can be coordinated through a revenue-sharing contract. The purpose of this paper is to make the three-level supply chain coordinate in IoT by considering the influence of FAP on market demand and costs of controlling freshness on the road. Design/methodology/approach A three-level FAP supply chain that comprises a manufacturer, distributor, and retailer in IoT is regarded as the research object. This study improves the revenue-sharing contract, determines the optimal solution when the supply chain achieves maximum profit in three types of decision-making situations, and develops the profit distribution model based on the improved revenue-sharing contract to coordinate the supply chain. Findings The improved revenue-sharing contract can coordinate the FAP supply chain that comprises a manufacturer, distributor, and retailer in IoT, as well as benefit all enterprises in the supply chain. Practical implications Resource utilization rate can be improved after coordinating the entire supply chain. Moreover, loss in the circulation process is reduced, and the circulation efficiency of FAPs is improved because of the application of IoT. The validity of the model is verified through a case analysis. Originality/value This study is different from other research in terms of the combination of supply chain coordination, FAPs, and radio frequency identification application in IoT.

Contract coordination optimization of a multi-power supplier-single dominant grid supply chain in hybrid electricity market

2019 ◽  
Vol 119 (9) ◽  
pp. 1861-1887
Author(s):  
Zhenning Zhu ◽  
Lingcheng Kong ◽  
Jiaping Xie ◽  
Jing Li ◽  
Bing Cao
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Renewable Energy ◽  
Power Supply ◽  
Electricity Market ◽  
Revenue Sharing ◽  
Market Demand ◽  
Content Type ◽  
Revenue Sharing Contract ◽  
Green Power

Purpose In the hybrid electricity market, renewable energy power generator faces the uncertainty of power market demand and the randomness of the renewable energy generation output. In order to improve the grid-connected quantity of green power, the purpose of this paper is to design the pricing mechanism for renewable energy power generator with revenue-sharing contract in a two-stage “multi-single” electricity supply chain which contains a single dominant power retailer and two kinds of power suppliers providing different power energy species. Design/methodology/approach Considering the dual uncertainties of renewable energy power output and power market demand, the authors design the full-cooperative contract decision-making model, wholesale price contract decision-making model and revenue-sharing contract decision-making model to compare and optimize grid-connected pricing in order to maximize profit of different parties in power supply chain. Then, this paper performs a numerical simulation, discusses the existence of the equilibrium analytical solutions to satisfy the supply chain coordination conditions and analyzes the optimal contract parameters’ variation characteristics and their interaction relationship. Findings The authors find that the expected profits of the parties in the hybrid power supply chain are concave about their decision variables in each decision-making mode. The revenue-sharing contract can realize the Pareto improvement for all parties’ interest of the supply chain, and promote the grid-connected quantity of green power effectively. The grid-connected price will reduce with the increase of revenue-sharing ratio, and this impact will be greater on the renewable energy power. The greater the competition intensity in power supply side, the smaller the revenue-sharing ratio from power purchaser. And for the same rangeability of competition intensity, the revenue-sharing ratio reduction of thermal power is less than that of the green power. The more the government subsidizing green power supplier, the smaller the retailer sharing revenue to it. Practical implications Facing with the dual uncertainties of green power output and market demand and the competition of thermal power in hybrid electricity market, this study can provide a path to solve the problem of renewable energy power grid-connecting. The results can help green power become competitive in hybrid power market under loose regulations. And this paper suggests that the government subsidy policy should be more tactical in order to implement a revenue-sharing contract of the power supply chain. Originality/value This paper studies the renewable energy electricity grid-connected pricing under the uncertainty of power supply and market demand, and compares different contract decision-making strategies in order to achieve the power supply chain coordination. The paper also analyzes the competition between thermal power and renewable energy power in hybrid electricity market.

Exploring the food tourism landscape and sustainable economic development goals in Dhofar Governorate, Oman

2019 ◽  
Vol 122 (6) ◽  
pp. 1897-1918 ◽  
Author(s):  
Debra J. Enzenbacher
Keyword(s):  
Economic Development ◽  
Mother Tongue ◽  
Tourism Development ◽  
Food Culture ◽  
Content Type ◽  
Sustainable Economic Development ◽  
Wide Range ◽  
Development Goals ◽  
Recent Trends ◽  
Food Tourism

Purpose This exploratory research opens a new avenue of tourism destination enquiry for Dhofar Governorate, Oman. It examines the relationship between the food tourism landscape in the country’s southernmost region and the Government’s stated economic development goals. Tourism is a new industry here and in need of sustainable development. The purpose of this paper is to identify how the natural and human resources of the region may be harnessed to expand food tourism pathways and achieve sustainable economic development e.g. maximising stakeholder benefits. Design/methodology/approach The literature review highlights many new developments in food tourism for this baseline study. Qualitative and quantitative (i.e. mixed) methods are used including a case study, a pilot survey of key Government stakeholders in Oman’s Ministry of Tourism, food factory tours and interviews with their executives in Dhofar, direct and participant observation at food establishments and events, visits to popular roadside and market food stalls in Salalah and tourism trend analysis. Findings Some recent trends in food tourism elsewhere may be adapted in Salalah and spark interest in the food culture and heritage of Dhofar. This, in turn, may bring multiple benefits to the destination’s stakeholders. The governorate’s environment yields a rich variety of agricultural and other food products that may be used to provide new forms of food tourism and increase the region’s appeal to tourists beyond the Khareef season. Further possible benefits include safeguarding local food knowledge, production, culture and heritage, developing SMEs, creating new jobs and increasing visitor stay and spend. Research limitations/implications The study is conducted solely in English, whereas Arabic is the mother tongue in Oman. Dhofar is the country’s largest governorate occupying a vast area, not all of which is covered by the study. More data are needed to inform tourism development, policymaking and planning in Dhofar. Practical implications Improving tourism’s sustainability profile, creating successful food tourism products and services and achieving Dhofar’s economic development goals require concerted effort. All are in the best interest of the tourism stakeholders concerned. Social implications This paper provides a foundation for future research on this topic. It highlights the importance of placing food tourism development on a sustainable footing to protect and preserve Dhofar’s unique food culture, heritage, traditions and environment, extend the main tourism season and maximise benefits to stakeholders. Originality/value Recent trends in food tourism are investigated to gauge their applicability in this dynamic region of Oman. Ideas are presented demonstrating possible food tourism pathways to sustainable economic development that benefit a wide range of stakeholders e.g. food tours, food factory tours and shops, food festivals and cookery-school holidays and/or classes.

A multi-objective model for sustainable closed-loop supply chain of perishable products under two carbon emission regulations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saman Esmaeilian ◽  
Dariush Mohamadi ◽  
Majid Esmaelian ◽  
Mostafa Ebrahimpour
Keyword(s):  
Mathematical Model ◽  
Supply Chain ◽  
Life Cycle ◽  
Carbon Emission ◽  
Closed Loop ◽  
Perishable Products ◽  
Supply Chain Network ◽  
Closed Loop Supply Chain ◽  
Content Type ◽  
Trade Model

Purpose This paper aims to minimize the total carbon emissions and costs and also maximize the total social benefits. Design/methodology/approach The present study develops a mathematical model for a closed-loop supply chain network of perishable products so that considers the vital aspects of sustainability across the life cycle of the supply chain network. To evaluate carbon emissions, two different regulating policies are studied. Findings According to the obtained results, increasing the lifetime of the perishable products improves the incorporated objective function (IOF) in both the carbon cap-and-trade model and the model with a strict cap on carbon emission while the solving time increases in both models. Moreover, the computational efficiency of the carbon cap-and-trade model is higher than that of the model with a strict cap, but its value of the IOF is worse. Results indicate that efficient policies for carbon management will support planners to achieve sustainability in a cost-effectively manner. Originality/value This research proposes a mathematical model for the sustainable closed-loop supply chain of perishable products that applies the significant aspects of sustainability across the life cycle of the supply chain network. Regional economic value, regional development, unemployment rate and the number of job opportunities created in the regions are considered as the social dimension.

Pricing and service decision of dual-channel operations in an O2O closed-loop supply chain

2017 ◽  
Vol 117 (8) ◽  
pp. 1567-1588 ◽  
Author(s):  
Lingcheng Kong ◽  
Zhiyang Liu ◽  
Yafei Pan ◽  
Jiaping Xie ◽  
Guang Yang
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Wholesale Price ◽  
Revenue Sharing ◽  
Service Level ◽  
Return Rate ◽  
Transfer Payment ◽  
Channel Conflict ◽  
Content Type ◽  
Dual Channel

Purpose The online direct selling mode has been widely accepted by enterprises in the O2O era. However, the dual-channel (online/offline, forward/backward) operations of the closed-loop supply chain (CLSC) changed the relationship between manufacturers and retailers, thus resulting in channel conflict. The purpose of this paper is to take a dual-channel operations of CLSC as the research target, where a manufacturer sells a single product through a direct e-channel as well as a conventional retail channel; the retailer are responsible for collecting used products in the reverse supply chain and the manufacturer are responsible for remanufacturing. Design/methodology/approach The authors build a benchmark model of dual-channel price and service competition and take the return rate, which is considered to be related to the service level of the retailer, as the function of the service level to extend the model in the reverse SC. The authors then analyze the optimal pricing and service decision under centralization and decentralization, respectively. Finally, with the revenue-sharing factor, wholesale price and recycling price transfer payment coefficient as contract parameters, the paper also designs a revenue-sharing contract led by the manufacturer and explores in what situation the contract could realize the Pareto optimization of all players. Findings In the baseline model, the results show that optimal price and service level correlate positively in centralization; however, the relation relies on consumers’ price sensitivity in decentralization. In the extension model, the relationship between price and service level also relies on the relative value of increased service cost and remanufacturing saved cost. When the return rate correlates with the service level, a recycling transfer payment can elevate the service level and thus raise the return rate. Through analyzing the parameters in revenue-sharing contract, a point can be reached where lowering the wholesale price and raising the transfer payment coefficient will promote retailers to share revenue. Practical implications Many enterprises establish the dual-channel distribution system both online and offline, which need to understand how to resolve their channel conflict. The conflict is especially strong in CLSC with remanufacturing. The result helps the node enterprises realize the coordination of the dual-channel CLSC. Originality/value It takes into account the fact that there are two complementary relationships, such as online selling and offline delivery; used product recycling and remanufacturing. The authors optimize the strategy of product pricing and service level in order to solve channel conflict and double marginalization in the closed-loop dual-channel distribution network.

scholarly journals Achieve a low carbon supply chain through product mix

2017 ◽  
Vol 117 (10) ◽  
pp. 2468-2484 ◽  
Author(s):  
Xu Chen ◽  
Xiaojun Wang
Keyword(s):  
Supply Chain ◽  
Trade Policy ◽  
Carbon Emissions ◽  
Channel Structure ◽  
Low Carbon ◽  
Cap And Trade ◽  
Product Mix ◽  
Content Type ◽  
Carbon Supply ◽  
Trade Offs

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.

Understanding the role of big data analytics for coordination of electronic retail service supply chain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fatao Wang ◽  
Di Wu ◽  
Hongxin Yu ◽  
Huaxia Shen ◽  
Yuanjun Zhao
Keyword(s):  
Big Data ◽  
Supply Chain ◽  
Data Analysis ◽  
Big Data Analytics ◽  
Big Data Analysis ◽  
Coordination Mechanism ◽  
Market Demand ◽  
Content Type ◽  
Service Supply Chain ◽  
Retail Service

PurposeBased on the typical service supply chain (SSC) structure, the authors construct the model of e-tailing SSC to explore the coordination relationship in the supply chain, and big data analysis provides realistic possibilities for the creation of coordination mechanisms.Design/methodology/approachAt the present stage, the e-commerce companies have not yet established a mature SSC system and have not achieved good synergy with other members of the supply chain, the shortage of goods and the greater pressure of express logistics companies coexist. In the case of uncertain online shopping market demand, the authors employ newsboy model, applied in the operations research, to analyze the synergistic mechanism of SSC model.FindingsBy analyzing the e-tailing SSC coordination mechanism and adjusting relevant parameters, the authors find that the synergy mechanism can be implemented and optimized. Through numerical example analysis, the authors confirmed the feasibility of the above analysis.Originality/valueBig data analysis provides a kind of reality for the establishment of online SSC coordination mechanism. The establishment of an online supply chain coordination mechanism can effectively promote the efficient allocation of supplies and better meet consumers' needs.

scholarly journals Strategies for Capital Constrained Timber and Carbon Sink Supply Chain under the Cap-and-Trade Scheme

2020 ◽  
Vol 12 (11) ◽  
pp. 4380
Author(s):  
Xinyue Yang ◽  
Ye Song ◽  
Mingjun Sun ◽  
Hongjun Peng
Keyword(s):  
Supply Chain ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Carbon Sink ◽  
Cap And Trade ◽  
Stackelberg Model ◽  
Emission Rights ◽  
The Government ◽  
The Impact ◽  
Reduction Costs

We consider a capital constrained timber and carbon sink supply chain under the cap-and-trade scheme, where the forest company produces timber and carbon sink. We consider two subsidy modes: financing subsidy to the carbon sink forests and financing subsidy to the manufacturer’s emission reductions. We apply a Stackelberg model and mainly consider the impact of subsidies on the profits and the strategies of the supply chain members. The results show that when the government gives a financing subsidy to the carbon sink forests, it is conducive to promoting the expansion of carbon sink forests, as well as the enhancement of the forest company’s profit. However, a larger supply of carbon sinks generates a lower price, which leads to the manufacturer reducing the technical emission reduction level and purchasing more carbon emission rights instead. On the other hand, when the manufacturer receives a financing subsidy for the technical emission reduction costs, its production becomes cleaner than before, and the profits of the forest company and the manufacturer increase.

Joint order allocation and transportation planning under uncertainty within a socially responsible supply chain

2019 ◽  
Vol 15 (2) ◽  
pp. 531-565 ◽  
Author(s):  
R. Ghasemy Yaghin ◽  
P. Sarlak
Keyword(s):  
Supply Chain ◽  
Social Responsibility ◽  
Transportation Planning ◽  
Textile Industry ◽  
Research Work ◽  
Planning Under Uncertainty ◽  
Market Demand ◽  
Order Allocation ◽  
Total Contribution ◽  
Content Type

Purpose This paper aims to propose an integrated supplier selection, order allocation, transportation planning model, along with investment planning for corporate social responsibility (CSR), over a given multi-period horizon under uncertainty. Furthermore, a customer’s behavior to pay more money for items with CSR attributes is considered in the total market demand. Design/methodology/approach The objective functions, i.e. social value of purchasing, total profit (TP), total delivery lead-time, total air pollution, total water pollution and total energy consumption with regard to a number of constraints are jointly considered in a multi-product system. It is worth noting that operational- and sustainable-related parameters are usually vague and imprecise in this area. Therefore, this paper develops a new fuzzy multi-objective optimization model to capture this inherent fuzziness in critical data. Findings Through the numerical examples in the textile industry, the application of the model and usefulness of solution procedures are carried out. The numerical results obtained from the proposed approach indicate the efficiency of the solution algorithm in different instances. Moreover, the authors observe that social investment of the buyer, to stimulate market demand, can affect the TP and also involve the total contribution of suppliers in social responsibility. Originality/value This research work concentrates on providing a procurement and inventory model through the lens of sustainability to enable textile supply chain managers and related industries to apply the approach to their inventory control and supply management. Totally, the proposed methodology could be applied by many fabric buyers of textile industry tackling purchasing issues and attempting to perfect understanding of social supply chains.

Sign in / Sign up

Export Citation Format

Share Document