Financing decisions of low-carbon supply Chain under Chain-to-Chain competition

Xia, Tongshui; Wang, Yuyan; Lv, Lingxue; Shen, Liang; Cheng, T. C. E.

doi:10.1080/00207543.2021.2023833

Cited by 48 publications

(16 citation statements)

References 76 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Consumers will pay a higher price for greener products (Xia, Wang et al 2022). Under the emission-dependent supply chain with capital constraints, we found that the relationship between the decision variables and the parameters under TCF is consistent with benchmark scenario.…”

Section: The Impact Of Unit Carbon Emission Trading Pricesupporting

confidence: 64%

“…Assumption 3. We assume that the residual value of the goods is zero and ignore the loss of goodwill due to stock-outs (Xia, Wang et al 2022).…”

Section: Notations and Assumptionmentioning

confidence: 99%

“…Because the manufacturer can sell redundant carbon emission permits to obtain more profit. And although the wholesale price is also higher with the increasing carbon emission price, the increase in consumers' low-carbon preference makes consumers willing to pay a higher price for low-carbon products, the low-carbon manufacturer does not suffer a profit loss (Xia, Wang et al 2022). At this time, the retailer's financing income increased, and the procurement cost also increase.…”

Section: Model Analysismentioning

confidence: 99%

See 2 more Smart Citations

Optimal Financing Decision with Financial Constraints for a Manufacturer in a Low-Carbon Supply Chain

Zong

Huang

2023

Preprint

View full text Add to dashboard Cite

In this paper, bank financing (BF) and trade credit financing (TCF) are viable. We investigate the financing choice problem for an emission-dependent manufacturer with capital constrained. And the members of the supply chain each pursue their profit maximization. In the existing literature on the financing supply chain, enterprises and consumers are becoming more and more aware of environmental protection. A growing number of manufacturers produce low-carbon products like environment-friendly bags through a green supply chain system. We use the Stackelberg game to study the equilibrium financing choice and optimal decisions. We also perform numerical analysis to verify the impact of certain parameters on financing decisions. The results show that no direct relationship between the degree of carbon reduction and the total amount of carbon emissions as defined by the government. Besides, when the trade credit interest rate is higher than the bank interest rate, the manufacturer will choose bank financing. When the credit interest rate is lower than a certain threshold, the retailer provides trade credit financing. Our study also provides useful insights for managers to understand and make financing decisions in the low-carbon supply chain with the capital-constrained manufacturer.

show abstract

Section: The Impact Of Unit Carbon Emission Trading Pricesupporting

confidence: 64%

“…Assumption 3. We assume that the residual value of the goods is zero and ignore the loss of goodwill due to stock-outs (Xia, Wang et al 2022).…”

Section: Notations and Assumptionmentioning

confidence: 99%

Section: Model Analysismentioning

confidence: 99%

See 1 more Smart Citation

Optimal Financing Decision with Financial Constraints for a Manufacturer in a Low-Carbon Supply Chain

Zong

Huang

2023

Preprint

View full text Add to dashboard Cite

show abstract

“…Besides the abovementioned papers, many other works investigate this area to allow more features such as customer rebate and retailer incentive promotions [16], contract choice game [17], contract design [18,19], supply uncertainty [20], Green and sustainable supply chains [21][22][23], manufacturer rebate [24], strategic inventory [25], and information sharing strategies [26]. Our paper difers from the abovementioned research studies from that we consider capital-constrained retailers and investigate the impact of such feature on each member's decision as well as the chainto-chain competition.…”

Section: Operational and Marketing Decisions Under Chain-to-chain Com...mentioning

confidence: 99%

The Effect of Bank Financing under Supply Chain-to-Chain Competition

Liang

2022

Mathematical Problems in Engineering

View full text Add to dashboard Cite

We consider two supply chains, each consisting of one supplier and one retailer. The two retailers are involved in Cournot competition and purchase one single product only from the supplier in the same supply chain. The two suppliers are heterogenous in the production cost. In addition, both retailers are in short of capital, hence both of them need to raise bank loans. All players are risk neutral and their objectives are to maximize their own profit. Based on these features, we establish an analytical model and characterize each player’s optimal decision. Compared to the benchmark model when both retailers have sufficient capital, we find that, in optimal, each supplier provides a lower wholesale price to its own retailer. Moreover, when one of the supplier’s cost is small enough, the corresponding supply chain’s competitive advantage is amplified by the financial cost (i.e., loan interest), generating a larger selling quantity to the market. Therefore, the supply chain achieves a higher profit than the benchmark case, while the other supply chain is worse off. However, if the difference of the two suppliers’ costs is not that significant, all players in the two supply chains would be worse off. Moreover, the numerical experiment further shows that when each supplier’s cost is low enough, both retailers can be better off even if they are capital-constrained. Our results provide useful insights into the supply chain competition when retailers use bank loans to finance their operations.

show abstract

“…Manufacturers are under pressure to achieve a competitive edge through low-carbon production, due to intense market competition and customers' awareness of environmental protection. Research shows that low-carbon production cannot mitigate the detrimental effects of growing competition intensity on company earnings in chain-to-chain competition, and fierce competition weakens manufacturers' efforts to reduce emissions [17]. Reduced carbon emissions in the supply chain, without compromising long-term economic interests, is the ultimate objective of low-carbon supply chain management (LCSCM).…”

Section: Introductionmentioning

confidence: 99%

Low-Carbon Supply Chain Coordination Based on Carbon Tax and Government Subsidy Policy

Ran

2023

Sustainability

View full text Add to dashboard Cite

To meet the demands of society’s transition to a low-carbon economy, this study analyzes and designs a coordination contract that is suitable for a low-carbon supply chain, under the circumstances of a carbon tax policy and government subsidies; this is to achieve a reduction in emissions and a growth in the total profits of the supply chain, while simultaneously improving the sustainable competitiveness and coordination of the supply chain. Manufacturers and retailers make up the two levels of the supply chain that are the focus of this study. Both centralized and decentralized decision-making models are created using the Stackelberg game method. By analyzing the supply chain decision-making and emission-reduction strategies in both cases, the revenue-sharing contract is designed to achieve the sustainable coordination of the supply chain. The results of the numerical analysis show the following: first, that more orders are placed and emissions are reduced under centralized decision-making than under decentralized decision-making; second, that the total supply chain’s profits are higher when all parties comply with the revenue-sharing contract than when there are no contracts; third, that the revenue-sharing contract allows for the free allocation of supply chain gross margins in the enterprise for supply chain coordination.

show abstract

Financing decisions of low-carbon supply Chain under Chain-to-Chain competition

Cited by 48 publications

References 76 publications

Optimal Financing Decision with Financial Constraints for a Manufacturer in a Low-Carbon Supply Chain

Optimal Financing Decision with Financial Constraints for a Manufacturer in a Low-Carbon Supply Chain

The Effect of Bank Financing under Supply Chain-to-Chain Competition

Low-Carbon Supply Chain Coordination Based on Carbon Tax and Government Subsidy Policy

Contact Info

Product

Resources

About