scholarly journals Diverse Schemes of Cost Pooling for Carbon- Reduction Outsourcing in Low-Carbon Supply Chains

Energies ◽  
2018 ◽  
Vol 11 (11) ◽  
pp. 3013 ◽  
Author(s):  
Qinpeng Wang ◽  
Longfei He ◽  
Daozhi Zhao ◽  
Michele Lundy
Keyword(s):  
Supply Chain ◽  
Cost Efficiency ◽  
Third Party ◽  
Low Carbon ◽  
Carbon Reduction ◽  
Carbon Supply ◽  
External Expert ◽  
Reduction Efficiency ◽  
Important Means ◽  
Better Than

Among responses to governmental regulations for curbing carbon emissions, outsourcing carbon reduction to a specialized third-party is an important means to satisfy a variety of carbon-emission restraints. In this situation, however, designing efficient contracts for emission reducing while retaining appropriate supply-chain profit is a substantial but challenging problem. We therefore refine this from practice and consider a low-carbon supply chain consisting of one manufacturer and one retailer to analyze in which conditions the system should outsource its carbon reduction efforts to an external expert firm under the assumption that consumers with a sense of social responsibility prefer low carbon products. In the decarbonization expert firm embedded supply chain, we examine the respective impacts of three cost-pooling schemes for emission reduction on supply chain performances. We find that the manufacturer-undertaking contract is the worst in terms of profit and carbon reduction level among the contracts being studied, while the retailer-undertaking contract yields the best outcome in terms of the profit and performs well in carbon reduction when the contractor has cost efficiency in carbon reduction, which is even better than the joint-undertaking contract in carbon reduction when the contractor is inefficient. The study shows the diversity of contracts on outsourcing carbon reduction significantly impacts the supply chain profitability, carbon reduction efficiency and sustainability of operations.

scholarly journals Incentive Strategies for Low-Carbon Supply Chains with Asymmetric Information of Carbon Reduction Efficiency

2018 ◽  
Vol 15 (12) ◽  
pp. 2736 ◽  
Author(s):  
Qinpeng Wang ◽  
Longfei He
Keyword(s):  
Supply Chain ◽  
Private Information ◽  
High Efficiency ◽  
Low Carbon ◽  
Carbon Reduction ◽  
Carbon Supply ◽  
Reduction Efficiency ◽  
Information Rent ◽  
Low Efficiency ◽  
The Impact

Information concerning carbon reduction efficiency is of great significance to supply chain operations. Considering the impact of information asymmetry on the performance of low-carbon supply chain, we therefore analyze a chain system with a single product designer and a single manufacturer. The manufacturer owns information on carbon reduction efficiency, whereas the product designer only knows that the carbon reduction efficiency of the manufacturer is either high or low. To induce the manufacturer to reveal his true private information of carbon-reduction efficiency to the product designer, we devise the pooling and separating equilibrium models to compare the impacts of these two models on supply chain performance, respectively. We find that the high-efficiency manufacturer gets his first-best choice at the equilibrium decision in the separating model, and obtains the information rent in the pooling model. The information rent increases in the efficiency difference between the two emission-reduction types. Additionally, we examine how the probability of the high (or low)-efficiency manufacturer being chosen impacts on both the profits of chain members and carbon-reduction levels. The research provides a reference for companies about how to cooperate with partner who possess private information of carbon emissions.

scholarly journals Designing Buy-Online-and-Pick-Up-in-Store (BOPS) Contract of Dual-Channel Low-Carbon Supply Chain considering Consumers’ Low-Carbon Preference

2020 ◽  
Vol 2020 ◽  
pp. 1-15
Author(s):  
Yang Zhang ◽  
Jingyi Li ◽  
Bing Xu
Keyword(s):  
Supply Chain ◽  
Price Elasticity ◽  
Wholesale Price ◽  
Low Carbon ◽  
Carbon Supply ◽  
Dual Channel ◽  
Cross Price Elasticity ◽  
Dominant Retailer ◽  
Product Sales ◽  
Better Than

Nowadays, buy-online-and-pick-up-in-store (BOPS) is a popular sales project to promote product sales. Implementing BOPS in the dual-channel low-carbon supply chain (DLSC) can not only improve low-carbon manufacturers’ profit but also reduce energy consumption in it. This paper focuses on how to design the contract which can ensure the implementation of BOPS in the DLSC consisting of one manufacturer and one retailer considering consumers’ low-carbon preference. Based on the analysis of game theory, two kinds of BOPS contract (MW contract with the dominant manufacturer making decision on wholesale price and RW contract with the dominant retailer making decision on wholesale price) with fixed compensation are designed and compared to obtain the better contract which is more effective on the implementation of BOPS. The findings show that MW contract is better than RW contract for the DLSC to implement BOPS. When consumers’ low-carbon preference and BOPS preference and the anti-cross-price elasticity are high enough, the DLSC can implement BOPS under the MW contract because it has Pareto efficiency on the profit of the original DLSC. We further find the sales price is decreasing in consumers’ low-carbon preference and anti-cross-price elasticity, while the wholesale price is increasing in consumers’ low-carbon preference. Finally, the results are verified by numerical examples.

scholarly journals The Evolutionary Game Theoretic Analysis for Emission Reduction and Promotion in Low-Carbon Supply Chains

2018 ◽  
Vol 8 (10) ◽  
pp. 1965 ◽  
Author(s):  
Baiyun Yuan ◽  
Longfei He ◽  
Bingmei Gu ◽  
Yi Zhang
Keyword(s):  
Supply Chain ◽  
Emission Reduction ◽  
Evolutionary Game ◽  
Game Model ◽  
Low Carbon ◽  
Carbon Reduction ◽  
Game Theoretic Analysis ◽  
Carbon Supply ◽  
Evolutionary Stable Strategies ◽  
Game Theoretic

Aiming at exploring the interplay principles of operations strategies among members of dvertising and emission reduction cost sharing contracts and coordination in low-carbon sulow-carbon supply chain, as well as their impact on system performance, we develop an evolutionary game model to capture emission reduction and low-carbon promotion actions, which are typically conducted by one manufacturer and one retailer in every two-echelon supply chain, respectively. We exploit the evolutionary game model to analyze players’ behavioral patterns of their interacting strategies, whereby we attain the evolutionary stable strategies and their associated existing preconditions under various scenarios. We acquire a number of managerial insights, and particularly find that the evolutionary stable strategies of the channel carbon reduction and promotion are remarkably influenced by incremental profits resulted from causes, such as every player’s unilateral participation in emission reduction. In addition, we investigate a player’s free-rider opportunistic practice in cooperative carbon reduction and joint participation in emission reduction. However, the magnitude of profit increment will heavily influence the result of Evolutionary Stable Strategy (ESS). Finally, the extensive computational studies enable us to verify the effectiveness of preceding models.

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.

Developing Global Supply Chain Manager for Business Expansion

2018 ◽  
pp. 5327-5334
Author(s):  
Puspita Wulansari ◽  
Yudi Fernando
Keyword(s):  
Supply Chain ◽  
Customer Satisfaction ◽  
International Business ◽  
Cost Efficiency ◽  
Global Supply Chain ◽  
Global Competition ◽  
Supply Chain Performance ◽  
Chain Processes ◽  
Better Than

Global competition has forces companies to continuously innovate by frequently asses and improve their supply chain processes, flexibility and fast delivery as effectiveness required in each supply chain processes. This is to ensure cost efficiency, faster delivery and in the end would lead to customer satisfaction and perform better than competitors. To be able to perform better among competitors and improving firms supply chain performance, firms need the talents who able to manage global resources effectively and understand culture, suppliers/ workers attitude and comply with global regulations. Success implementation of global supply chain has linked with talents capability to maximize manage global resources. The aim of this chapter is to discuss the competency needed of global supply chain managers to support international business expansion.

Measuring Low Carbon Supply Chain

2019 ◽  
pp. 1105-1116
Author(s):  
Muhammad Shabir Shaharudin ◽  
Yudi Fernando
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Greenhouse Gas Emission ◽  
Review Literature ◽  
Extended Model ◽  
Low Carbon ◽  
Chain Management ◽  
Carbon Supply ◽  
Or Practice ◽  
Reduce Carbon Emission

The threat of climate change is due to increasing carbon emissions of manufacturing production and transportation. Currently, government is encouraging manufacturing to reduce carbon emission and conduct low carbon supply chain management (LCSCM). In order to solve the greenhouse gas emission dilemma, LCSCM is essential for manufacturing firms' stakeholders. Supply chain partners are expected to know the proper measurement of emissions to solve this problem. This chapter's aim is to review literature on how to measure LCSCM. In the past, the concept of green supply chain management (GSCM) was practiced to promote and reduce environmental risks. However, GSCM is a driver or practice to achieve environmental outcomes. The extended model of GSCM currently practices LCSCM through carbon footprint (CF) concept. In other words, LCSCM is an outcome that both interests researchers and persuades practitioners.

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