scholarly journals Sustainable Production–Inventory Model in Technical Cooperation on Investment to Reduce Carbon Emissions

Processes ◽  
2020 ◽  
Vol 8 (11) ◽  
pp. 1438 ◽  
Author(s):  
JiaLiang Pan ◽  
Chui-Yu Chiu ◽  
Kun-Shan Wu ◽  
Hsiu-Feng Yen ◽  
Yen-Wen Wang
Keyword(s):  
Supply Chain ◽  
Carbon Emissions ◽  
Carbon Emission ◽  
Inventory Model ◽  
Capital Investments ◽  
Cap And Trade ◽  
Green Technologies ◽  
Supply Chain System ◽  
Production Inventory ◽  
Total Profit

Carbon cap-and-trade and carbon offsets are common and important carbon emission reduction policies in many countries. In addition, carbon emissions from business activities can be effectively reduced through specific capital investments in green technologies. Nevertheless, such capital investments are costly and not all enterprises can afford these investments. Therefore, if all members of a supply chain agree to share the investments in the facilities, the supply chain can reduce carbon emissions and generate more profit. Under carbon cap-and-trade and carbon tax policies, this study proposes a production–inventory model in which the buyer and vendor in the integrated supply chain agree to co-invest funds to reduce carbon emissions. We planned to integrate production, delivery, replenishment, and technology to reduce carbon emissions so as to maximize the total profit of the supply chain system. Several examples are simulated and the sensitivity analysis of the main parameters is carried out. The optimal solutions and joint total profit under various carbon emission policies are also compared. The future carbon emission control trend is expected to enable companies to share risks by co-investing and developing sustainable supply chains.

scholarly journals Optimizing a Sustainable Supply Chain Inventory Model for Controllable Deterioration and Emission Rates in a Greenhouse Farm

Mathematics ◽  
2021 ◽  
Vol 9 (5) ◽  
pp. 495
Author(s):  
Umakanta Mishra ◽  
Abu Hashan Md Mashud ◽  
Ming-Lang Tseng ◽  
Jei-Zheng Wu
Keyword(s):  
Supply Chain ◽  
Carbon Emissions ◽  
Trade Credit ◽  
Numerical Study ◽  
Inventory Model ◽  
Green Technology ◽  
Solution Technique ◽  
Emission Rates ◽  
Sustainable Supply Chain ◽  
Green Technologies

This study investigated how greenhouse managers should invest in preservation and green technologies and introduce trade credit to increase their profits. We propose a supply chain inventory model with controllable deterioration and emission rates under payment schemes for shortage and surplus, where demand depends on price and trade credit. Carbon emissions and deterioration are factors affecting global warming, and many greenhouse managers have focused on reducing carbon emissions. Carbon caps and tax-based incentives have been used in many greenhouses to achieve such reduction. Because of the importance of reducing carbon emissions for developing a green supply chain, various studies have investigated how firms deal with carbon emission constraints. In this continuation, we have used green technology to curb the excessive emissions from the environment or make it clean from CO2. In a seller–buyer relationship, the seller can offer a trade credit period to the buyer to manage stock and stimulate demand. Deterioration may become a challenge for most firms as they are under time constraints control, and preservation technology could help. This study proposes three novel inventory strategies for a sustainable supply chain (full backorder, partial backorder, and no backorder), linking all these important issues. The solution optimizes total annual profit for inventory shortage or surplus. We conducted a numerical study with three examples to evaluate the model’s authenticity and effectiveness and demonstrate the solution technique. The deterioration and emission rates can be included in a trade credit policy to increase greenhouse profits. The results suggest that greenhouse managers could apply the proposed model to manage real-world situations.

Multiple Deliveries of Two-Warehouse Deteriorating Production-Inventory Model

2013 ◽  
Vol 684 ◽  
pp. 634-638
Author(s):  
Hsiao Ching Chen ◽  
Yao Hung Hsieh
Keyword(s):  
Supply Chain ◽  
Optimization Technique ◽  
Optimal Solution ◽  
Inventory Model ◽  
Integrated System ◽  
Discounted Cash Flow ◽  
Supply Chain System ◽  
Partial Backordering ◽  
Production Inventory ◽  
Production Inventory System

In this study we develop a two-warehouse deteriorating production-inventory model from the perspectives of both the manufacturer and the retailer. The model considered multiple deliveries, partial backordering and inflation. The discounted cash flow (DSF) and optimization technique are also used to derive the optimal solution. A numerical example is given to validate the results of the whole production-inventory system. This study shows that multiple deliveries of the integrated system results in an optimal solution for the manufacturer-retailer supply chain system.

scholarly journals Integrated multistage supply chain inventory model of multiple retailers with imperfect production and inspection systems

2021 ◽  
Author(s):  
Chi-Jie Lu ◽  
Ming Gu ◽  
Tian-Shyug Lee ◽  
Chih-Te Yang
Keyword(s):  
Supply Chain ◽  
Optimal Solution ◽  
Solution Procedure ◽  
Inventory Model ◽  
Model Complexity ◽  
Supply Chain System ◽  
Imperfect Production ◽  
Proposed Model ◽  
Inspection Systems ◽  
Total Profit

Abstract An integrated multistage supply chain inventory model containing a single manufacturer and multiple retailers is proposed to consider deteriorating materials and finished products with imperfect production and inspection systems. The main purpose is to jointly determine the manufacturer’s production and delivery strategies and the retailers’ replenishment strategies to maximize the integrated total profit. First, the individual total profit functions of the manufacturer and multiple retailers are established and are integrated to form the total profit function of the supply chain system. Then, to address the model complexity, an algorithm is proposed to obtain the optimal solution. Several practical numerical examples are presented to demonstrate the solution procedure, and a sensitivity analysis is performed on the major parameters. From the numerical results, several findings that differ from those in the previous literature were observed. First, retailers with larger market scale, better cost control, and inspection capabilities guarantee higher integrated total profit. Second, increasing the deterioration rates of materials and finished products affect the order quantity of materials in various ways. Third, the manufacturer’s shipping strategy is rigid and not easily adjusted in the proposed model. The performance of the proposed model has several meaningful management implications.

scholarly journals Decision Optimization of Low-Carbon Dual-Channel Supply Chain of Auto Parts Based on Smart City Architecture

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-14 ◽  
Author(s):  
Zheng Liu ◽  
Bin Hu ◽  
Bangtong Huang ◽  
Lingling Lang ◽  
Hangxin Guo ◽  
...  
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Carbon Emissions ◽  
Smart City ◽  
Carbon Emission ◽  
Low Carbon ◽  
Supply Chain System ◽  
Chain System ◽  
Carbon Supply ◽  
Auto Parts

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.

scholarly journals A Multistage Sustainable Production–Inventory Model with Carbon Emission Reduction and Price-Dependent Demand under Stackelberg Game

2020 ◽  
Vol 10 (14) ◽  
pp. 4878
Author(s):  
Chi-Jie Lu ◽  
Tian-Shyug Lee ◽  
Ming Gu ◽  
Chih-Te Yang
Keyword(s):  
Supply Chain ◽  
Carbon Emissions ◽  
Stackelberg Game ◽  
Carbon Tax ◽  
Inventory Model ◽  
Sustainable Production ◽  
Equilibrium Solutions ◽  
Production Inventory ◽  
Dependent Demand ◽  
Tax Regulation

This paper investigated a multistage sustainable production–inventory model for deteriorating items (i.e., raw materials and finished goods) with price-dependent demand and collaborative carbon reduction technology investment under carbon tax regulation. The model was developed by first defining the total profit of the supply chain members under carbon tax regulation and, second, considering a manufacturer (leader)–retailer (follower) Stackelberg game. The optimal equilibrium solutions that maximize the manufacturer’s and retailer’s total profits were determined through the method analysis. An algorithm complemented the model to determine the optimal equilibrium solutions, which were then treated with sensitivity analyses for the major parameters. Based on the numerical analysis, (a) carbon tax policies help reduce carbon emissions for both the manufacturer and retailer; (b) most carbon emissions from supply chain operations negatively impact the total profits of both members; (c) the retailer may increase the optimal equilibrium selling price to respond to an increase in carbon emissions from supply chain operations or carbon tax; and (d) autonomous consumption positively affects both members’ optimal equilibrium policies and total profits, whereas induced consumption does the opposite. These findings are very managerial and instructive for companies seeking profits and fulfilling environmental responsibility and governments.

Production-inventory and emission reduction investment decision under carbon cap-and-trade policy

2018 ◽  
Vol 52 (4-5) ◽  
pp. 1043-1067 ◽  
Author(s):  
Yuyao Fan ◽  
Min Wang ◽  
Lindu Zhao
Keyword(s):  
Supply Chain ◽  
Trade Policy ◽  
Carbon Emissions ◽  
Emission Reduction ◽  
Total Carbon ◽  
Compensation Mechanism ◽  
Cap And Trade ◽  
Emission Permits ◽  
Emission Permit ◽  
Production Inventory

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.

scholarly journals Optimal Pricing, Advertising, Production, Inventory and Investing Policies in a Multi-Stage Sustainable Supply Chain

Energies ◽  
2021 ◽  
Vol 14 (22) ◽  
pp. 7544
Author(s):  
JiaLiang Pan ◽  
Chui-Yu Chiu ◽  
Kun-Shan Wu ◽  
Chih-Te Yang ◽  
Yen-Wen Wang
Keyword(s):  
Supply Chain ◽  
Capital Investment ◽  
Carbon Emission ◽  
Academic Research ◽  
Decision Makers ◽  
Sustainable Supply Chain ◽  
Supply Chain System ◽  
Numerical Examples ◽  
Multi Stage ◽  
Production Inventory

In this paper, the study of a sustainable production–inventory model with price and advertisement dependent on demand considering carbon emission reduction technology is investigated. The aim of this paper is to determine the optimal appropriate pricing, advertising, production, inventory, and capital investment decisions under various carbon emission policies to maximize the joint total profit of a multi-stage supply chain system. Various theoretical results and an algorithm are provided to verify and obtain the optimal solution of the problem. Further, the model is verified by numerical examples, and the robustness check of parameter variation is also analyzed. Finally, some management implications for decision makers are drawn from numerical examples. In summary, this study puts forward more realistic modeling hypothesis, which is beneficial to the academic research, and the research results can provide relevant decision makers with a model for managing a sustainable supply chain.

scholarly journals Optimal Operational Decision Making of Manufacturers and Authorized Remanufacturers with Patent Licensing under Carbon Cap-and-Trade Regulations

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-22
Author(s):  
Biyu Liu ◽  
Zhongsheng Hua ◽  
Qinhong Zhang ◽  
Haidong Yang ◽  
Athanasios Migdalas
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Carbon Emissions ◽  
Environmental Benefits ◽  
Cap And Trade ◽  
Royalty Rate ◽  
Yield Rate ◽  
Decentralized Decision Making ◽  
Total Profit ◽  
Operational Decision Making

Constrained by production capacity and the pressure to reduce emissions, many original equipment manufacturers (OEMs) authorize third-party remanufacturers (TPRs) to remanufacture patented products. We investigate the operational decisions of OEMs and authorized TPRs under carbon cap-and-trade regulations in a two-echelon supply chain. We first formulate an operational decision model for OEMs before a TPR enters. Then, for the cases of centralized and decentralized decision making, we formulate an operational decision-making model for the TPR and, subsequently, establish one for the OEM after the TPR enters. We further analyze the effects of carbon emissions cap, trading price of carbon permits, yield rate, and consumer willingness to pay (WTP) on optimal decisions. Our results indicate: whether TPRs accept authorization remanufacturing depending on the ratio of carbon emissions cap to carbon emissions for producing per remanufactured product; royalty rate is negatively affected by trading price of carbon permits and per remanufactured product’ carbon emissions other than that for per new product, and can offset the threat caused by TPRs; the implementation of carbon cap-and-trade regulations causes OEMs to charge TPRs lower royalty rate; centralized decision making increases the total profit of the supply chain and delivers superior environmental benefits. As yield rate and WTP increase, the total profit increases, increasingly sensitive to WTP.

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