scholarly journals The Role of the Discount Policy of Prepayment on Environmentally Friendly Inventory Management

2022 ◽  
Vol 6 (1) ◽  
pp. 26
Author(s):  
Shirin Sultana ◽  
Abu Hashan Md Mashud ◽  
Yosef Daryanto ◽  
Sujan Miah ◽  
Adel Alrasheedi ◽  
...  

Nowadays, more and more consumers consider environmentally friendly products in their purchasing decisions. Companies need to adapt to these changes while paying attention to standard business systems such as payment terms. The purpose of this study is to optimize the entire profit function of a retailer and to find the optimal selling price and replenishment cycle when the demand rate depends on the price and carbon emission reduction level. This study investigates an economic order quantity model that has a demand function with a positive impact of carbon emission reduction besides the selling price. In this model, the supplier requests payment in advance on the purchased cost while offering a discount according to the payment in the advanced decision. Three different types of payment-in-advance cases are applied: (1) payment in advance with equal numbers of instalments, (2) payment in advance with a single instalment, and (3) the absence of payment in advance. Numerical examples and sensitivity analysis illustrate the proposed model. Here, the total profit increases for all three cases with higher values of carbon emission reduction level. Further, the study finds that the profit becomes maximum for case 2, whereas the selling price and cycle length become minimum. This study considers the sustainable inventory model with payment-in-advance settings when the demand rate depends on the price and carbon emission reduction level. From the literature review, no researcher has undergone this kind of study in the authors’ knowledge.

Author(s):  
Hao Zou ◽  
Jin Qin ◽  
Bo Dai

This research investigates the effect of fairness concerns on a sustainable low-carbon supply chain (LCSC) with a carbon quota policy, in which a manufacturer is in charge of manufacturing low-carbon products and sells them to a retailer. The demand is affected by price and the carbon emission reduction rate. The optimal decisions of pricing and carbon emission reduction rate are analyzed under four decision models: (i) centralized decision, (ii) decentralized decision without fairness concern, (iii) decentralized decision with manufacturer’s fairness concern, (iv) decentralized decision with retailer’s fairness concern. The results indicate that the profits in the centralized LCSC are higher than those in the decentralized LCSC with fairness concern. If a manufacturer pays close attention to fairness, the fairness concern coefficient will reduce the carbon emission reduction rate and the profit of the LCSC and increase the wholesale price and the retail price of the product. If a retailer pays close attention to fairness, and the preference of consumers for a low-carbon product is low, the fairness concern coefficient of the retailer increases the total profit of the LCSC and decreases the carbon emission reduction rate and retail price of the product. Otherwise, if the preference of consumers for a low-carbon product is great, the fairness concern coefficient of the retailer would lead to a lower retail price compared with the retail price in the centralized decision and decrease the total profit of the LCSC.


Energies ◽  
2018 ◽  
Vol 11 (9) ◽  
pp. 2296 ◽  
Author(s):  
Weiguo Fan ◽  
Zhicheng Gao ◽  
Nan Chen ◽  
Hejie Wei ◽  
Zihan Xu ◽  
...  

Studying the characteristics, trends, and evolution of carbon emissions in agricultural related sectors is of great significance for rational formulation of carbon emission reduction policies. However, as an important carbon emission reduction policy, carbon tax has been controversial over whether or not it should be levied on China. Based on this consideration, this paper takes China’s agricultural related sectors as an example and analyzes the degree of carbon tax on macro-environment, macroeconomy, and agricultural sectors during the period 2020–2050 by constructing a 3EAD-CGE (economy-energy-environmental-agricultural-dynamics Computable General Equilibrium) model. The results show that: (1) carbon tax has a time effect, specifically, the short-term effect is better than the long-term. (2) If the incremental rate of carbon tax is carried out alone, it will exert a great influence on the macroeconomy as well as on most of the agricultural related sectors. (3) If a carbon tax is introduced at the same time as indirect taxes are cut (proportionally), the policy will exert a negative impact on agriculture-related sectors that are subsidized. However, the policy will have a positive impact on those nonsubsidized sectors. Finally, based on the results, we put forward some suggestions that are more suitable for the introduction of a carbon tax in China’s agricultural-related sectors.


Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-10
Author(s):  
Haoran Li ◽  
Wei Peng

Carbon emission has negative externalities, which will cause severe natural and social problems. In recent years, more and more attention has been paid to carbon emission reduction issue both in academic and application fields. This paper aims to explore the impact of punitive carbon tax and incentive carbon emission reduction subsidy on economy and environment through the dynamic stochastic general equilibrium (DSGE) framework. The results show that both carbon tax and carbon emission reduction subsidy policies can help to reduce carbon emissions and to improve environment quality. In addition, carbon emission reduction subsidy has a positive impact on economy, while carbon tax has the opposite impact. It follows that the incentive carbon emission reduction policy is more conducive to the coordinated development of economy and environment. This research can be a guideline for the government to formulate carbon emission abatement policies from the perspective of coordinated development.


PLoS ONE ◽  
2021 ◽  
Vol 16 (11) ◽  
pp. e0259390
Author(s):  
Lujing Wang ◽  
Ming Zhang

Over the past four decades, China have experienced rapid economic growth but also a widening urban-rural income gap and deteriorating air quality. Based on the panel data of 30 provinces in China from 2006 to 2017, this paper investigates the effect of narrowing the urban-rural income gap on carbon emission reduction and pollution control by using OLS method. The empirical results indicate that: the narrowing of the urban-rural income gap has a positive impact on pollution control, while there are regional differences in the impact on carbon emission reduction. In the perspective of the whole country and central and western regions, the narrowing of the urban-rural income gap is conducive to carbon emission reduction. However, the narrowing of the urban-rural income gap increases carbon emissions in the eastern regions where economic development is at high level. This paper provides a theoretical basis and policy reference for promoting urban-rural integration and construction of ecological civilization.


2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Chong Zhang ◽  
Yaxian Wang ◽  
Haiyan Wang

<p style='text-indent:20px;'>Most of the previous literatures proposed a single coordination contract to increase the total profit of the supply chain, while this paper focuses on how to design environmental contracts to increase economic and environmental performance in the context of sustainable development. This paper designs the environmental contract based on cap-and-trade mechanism and trade credits which has rarely been studied before, especially the impact of trade credit on environmental performance. We consider a green supply chain, assuming that the demand rate is linear with retail prices, joint carbon emission reduction efforts and trade credit. Two models, a decentralized one and a centralized one, are compared; four contracts are proposed. Via numerous examples and sensitivity analysis, we gain some insight into how to select supply chain contracts to better improve environmental performance. The results reveal that the manufacturer sharing the retailer's revenue and cost contract obtains the highest profit. While revenue sharing contract between both parties is the optimal environmental contract, but it is difficult to increase the profit of supply chain. Furthermore, it is found that trade credit works well in protecting the environment and plays a significant role in achieving coordination.</p>


Sign in / Sign up

Export Citation Format

Share Document