Coordinating a two-stage supply chain with external failure cost-sharing and risk-averse agents

Zang, Luning; Liu, Mengmeng; Wang, Zeyuan; Wen, Decheng

doi:10.1016/j.jclepro.2021.130012

Cited by 13 publications

(9 citation statements)

References 33 publications

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“…Therefore, the food waste collection agency, to create coordination in the channel, offers the commercial food service to order instead of , and if becomes less than , it will pay of the extra rental costs. In this contract, which is called SCS and is widely used in the literature (Zang et al 2022 ), the food waste collection agency and the commercial food service share some parts of the costs and their potential risks between themselves to optimize the entire system’s profit. According to this contract, also changes to , and its value must be calculated in such a way that none of the channel members will lose in comparison with the decentralized scheme.…”

Section: Modeling and Solution Methodsmentioning

confidence: 99%

Municipal food waste recycling as an environmental strategy: a game-theoretical approach

Beheshti

Heydari

2022

Environ Sci Pollut Res

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With the expansion of urbanization, we are witnessing the growing uncertainty in municipal food demand leading to an increase in urban waste. With the motive of producing organic fertilizers and conserving the environment, expired food can be collected and recycled. This study examines the hypothesis that leasing recycling facilities from peri-urban areas, due to the ban on reproduction operations in the city centers, can manage the recycling system participants’ relationship and enhance sustainability in urban communities. The problem has been investigated under two separate sources of uncertainty, namely, quality and capacity. In the first scenario, a recycling system consisting of a commercial food service located in urban areas, a food waste collection agency, and a suburban fertilizer factory is optimized, in which the commercial food service leases the fertilizer factory’s facilities for recycling operations. In the second scenario, the two factories’ relationship, in which the first factory can rent the second factory’s facilities in case of capacity shortage, is managed through hybrid contracts and mathematical programming models. The results show that the whole system optimization and Pareto Improvement results for all members are guaranteed under proposed hybrid contracts. These conclusions can help food recycling system managers have a better relationship with other players in their supply chains and enhance their credibility for caring about the environment, social concerns, and government compliance. Supplementary Information The online version contains supplementary material available at 10.1007/s11356-022-23851-7.

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Section: Modeling and Solution Methodsmentioning

confidence: 99%

Municipal food waste recycling as an environmental strategy: a game-theoretical approach

Beheshti

Heydari

2022

Environ Sci Pollut Res

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“…They found that the manufacturer can benefit from a cost-sharing strategy, as long as at least one retailer exerts marketing efforts. Other scholars have considered sharing the cost of failure [33], the impact of information sharing on consumer demand [34], and the issue of horizontal cooperation [35], in studying this problem.…”

Section: Marketing Cost Sharingmentioning

confidence: 99%

Contracting Supply Chains Considering Retailers’ Marketing Efforts

Li,

He,

Shi

2024

Mathematics

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Strategic cooperation has garnered significant attention in business. In this study, we explored the operating mechanisms of supply chains utilizing three Stackelberg models, in the following ascending order of cooperation level: price only, marketing cost sharing, and cross-shareholding. Further, we investigated the impact of cooperation on prices, marketing efforts, and profits, and analyzed the strategic cooperation preferences of different supply chain members. The results show that the influence of the level of cooperation on the wholesale and selling price is nonlinear. Interestingly, increased levels of cooperation do not always result in better outcomes. The marketing cost-sharing strategy aggravates the marketing burden on retailers. In contrast, the cross-shareholding strategy not only increases the total marketing effort level, but also efficiently reduces the burden of marketing on retailers. Moreover, all cooperation strategies solely benefit manufacturers rather than retailers, and not all of them improve the supply chain’s performance. Finally, the cross-shareholding cooperation strategy only maximizes the consumer surplus and social welfare under certain conditions. Overall, our study describes the operational mechanisms of diverse cooperative strategies and provides managerial guidance for those seeking to enhance marketing efforts and economic and social performance using a cooperation strategy.

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“…Adopting an MV research framework, Wen and Siqin (2020) explored how risk aversion levels and the uncertainty of product quality might influence optimal decisions on sharing economy platforms. Zang et al (2022) examined the sharing of external costs between riskaverse suppliers and manufacturers in two-stage supply chains with different power structures. They found that under the MV framework, the supplier and manufacturer who were more riskaverse earned less.…”

Section: Risk Aversionmentioning

confidence: 99%

“…When the ESCO acquires a larger share, it will be more enthusiastic about investing and increasing the unit carbon emission reduction, increasing market demand, bringing more benefits to the manufacturer and raising the recycling rate of used products. Finally, according to Zhu et al (2022) and Zang et al (2022), though the manufacturer's risk aversion level can help it avoid risks and reduce potential losses, it might limit its expected utility.…”

Section: Figure 10mentioning

confidence: 99%

Will the embedded service in supply chains play a role in lowering manufacturer’s carbon emission and maintaining economic growth?

Shi

Chen

Yu³

et al. 2023

Front. Environ. Sci.

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Introduction: The carbon cap and trade mechanism (CCTM) is forcing companies to reduce carbon emissions. Due to financial and technical constraints, manufacturers responsible for recycling and remanufacturing begin to seek embedded services from energy service companies (ESCOs), marking the emergence of embedded low-carbon service supply chains. The purpose of this paper is to explore the role of embedded low-carbon service in supply chains in lowering manufacturer’s carbon emissions and maintaining economic growth.Methods: In this paper, a decision model for risk-averse closed-loop supply chain for embedded low-carbon service in uncertain markets is built by using the Stackelberg theory and mean-variance (MV) approach. Equilibrium decisions, the manufacturer’s expected utility growth, and total carbon emission reduction are obtained. Sensitivity analysis is performed for the main parameters.Results: The results indicate that only when the manufacturer’s risk aversion level and consumers’ low-carbon preference are within the range of 0.35–0.9, can the manufacturer bring in embedded low-carbon service by cooperating with an ESCO through revenue-sharing contracts. When there is a higher carbon price, embedded low-carbon service can further increase the manufacturer’s expected utility, maintain economic growth and reduce carbon emissions.Discussion: Embedded low-carbon service in supply chains can play a role in lowering manufacturers’ carbon emissions and maintaining economic growth when the manufacturer’s risk aversion level, carbon price, and consumers’ low-carbon preference are high. Theoretically, this study combines closed-loop supply chains (CLSCs) and embedded low-carbon services, enriching supply chain theories. In addition, the findings provide managerial insights for manufacturers, ESCOs, and governments.

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Coordinating a two-stage supply chain with external failure cost-sharing and risk-averse agents

Cited by 13 publications

References 33 publications

Municipal food waste recycling as an environmental strategy: a game-theoretical approach

Municipal food waste recycling as an environmental strategy: a game-theoretical approach

Contracting Supply Chains Considering Retailers’ Marketing Efforts

Will the embedded service in supply chains play a role in lowering manufacturer’s carbon emission and maintaining economic growth?

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