Integrated economic and environmental models for a multi stage cold supply chain under carbon tax regulation

Hariga, Moncer; As’ad, Rami; Shamayleh, Abdulrahim

doi:10.1016/j.jclepro.2017.08.105

Cited by 148 publications

(94 citation statements)

References 25 publications

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“…Sustainability 2020, 12, 0 4 of 24 Some literature also studied the production and pricing decisions of participants in the supply chain under environmental regulation [37,38]. Chen and Sheu [39] investigated a rational environmental regulation mechanism that could promote EPR for the participants in the green supply chain.…”

Section: Environmental Regulationmentioning

confidence: 99%

Joint Emission Reduction Strategy in Green Supply Chain under Environmental Regulation

2020

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Under the threat of global warming, joint emission reduction strategy has been widely adopted as an effective solution for the industry to guarantee environmental sustainability. In the practice of supply chain, environmental regulations and supply chain contracts are applied with the attempt to improve environmental performance. However, whether these measures are actually effective remains unanswered. In this paper, we study a supply chain with one manufacturer and one retailer adopting joint emission reduction strategy. We first investigate under what circumstance the environmental regulation can effectively result in higher emission reduction efforts. The result shows that when the cost coefficient satisfies certain conditions, the increase of penalty or subsidy can lead to more investment in emission reduction. In addition, if the environmental impact caused by the production process is extremely high, the enforcement of the regulation is ineffective. We also explore how the cost-revenue-sharing contract affects the emission reduction strategy and the coordination of the members in the supply chain. The results suggest that the incentive effect of environmental regulation is more effective when the supply chain coordination contract exists. Numerical experiments are also presented to verify our analytical conclusions.

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Section: Environmental Regulationmentioning

confidence: 99%

Joint Emission Reduction Strategy in Green Supply Chain under Environmental Regulation

2020

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“…Bozorgi [29] extended the previous model considering multi-product cold items under limited capacity. Hariga et al [30] incorporated carbon emissions from transporting and storing the cold items in a three-echelon supply chain. Ghosh et al [31] considered carbon emissions from production, inventory holding, and transportation in a vendor-buyer supply chain under a single setup and multiple deliveries policy.…”

Section: Low-carbon Supply Chain Managementmentioning

confidence: 99%

“…The values of the parameters are considered by adopting data from Yang and Wee [52], Hariga et al [30], and Tiwari et al [15] as P = 2,000,000 units/year, D = 500,000 units/year, x = 1,725,000 unit/year, i c = $500/delivery, u c = $0.5/unit, c = $2,000/order, s = $100,000/setup, h d = $60/unit/year, h p = $40/unit/year, d d = $600/unit, d p = $400/unit, θ = 0.1, d = 100 km, t f = $1000/delivery, t v = $0.75/liter, w = 0.01 ton/unit, c 1 = 27 L/100 km, c 2 = 0.57 L/100 km/ton truckload, e c = 1.44 kWh/unit/year, T x = $75/tonCO 2 , F e = 2.6 × 10 −3 tonCO 2 /L (US. EPA [60]), E e = 0.5 × 10 −3 tonCO 2 /kWh (McCarthy [61]), and u is uniformly distributed in which α = 0 and β = 0.04, with E[u] = 0.02.…”

Section: Numerical Examplementioning

confidence: 99%

“…The additional fuel consumption is a linear function of truckloads. Figure 3 illustrates the linear fuel consumption model, which is similar to that of Hariga et al [30] with an example of the dataset from Volvo Corporation [51]. fuel price for manufacturer's variable transportation cost ($/liter); d distance traveled from vendor to buyer (km); w product weight (ton/unit); c 1 average vehicle fuel consumption when empty (liter/km); c 2 average additional fuel consumption per ton of load (liter/km/ton); T x carbon emission tax ($/tonCO 2 ); F e average emissions from fuel combustion (tonCO 2 /liter); E e average emissions from electricity generation (tonCO 2 /kWh); e 1 transportation emission cost ($/km); e 1 = c 1 F e T x ; e 2 average additional transportation emission cost per unit product ($/unit/km); e 2 = c 2 wF e T x ; e c average warehouse energy consumption per unit product (kWh/unit/year); w e warehouse emissions cost per unit product ($/unit/year); w e = e c E e T x ; T cycle length; T 1 production period for the manufacturer in each cycle; T 2 nonproduction period for the manufacturer in each cycle;…”

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confidence: 99%

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Low Carbon Supply Chain Coordination for Imperfect Quality Deteriorating Items

2019

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Nowadays, many countries have implemented carbon pricing policies. Hence, the industry adapts to this policy while striving for its main goal of maximizing financial benefits. Here, we study a single manufacturer–retailer inventory decision considering carbon emission cost and item deterioration for an imperfect production system. This study examines two models considering two cases of quality inspection. The first is when the buyer performs the quality inspection, and the second is when the quality inspection becomes the vendor’s responsibility so that no defective products are passed to the buyer. Carbon emission costs are incorporated under a carbon tax policy, and we consider the carbon footprint from transporting and warehousing the items. The objective is to jointly optimize the delivery quantity and number of deliveries per production cycle that minimize the total cost and reduce the total carbon emissions. This study provides solution procedures to solve the models, as well as two numerical examples.

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“…Azevedo et al [37] and Hariga et al [38] also focused on economic sustainability with the argument that if a strategy is economically sustainable, it should not only maximize profitability but also be well-supported by all parties. As a result, following this line of research, we highlight economic sustainability from two main perspectives in this subsection.…”

Section: Comparison Of Economic Sustainabilitymentioning

confidence: 99%

Owning or Outsourcing? Strategic Choice on Take-Back Operations for Third-Party Remanufacturing

Yan

Chai

et al. 2018

Sustainability

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Abstract:Despite the remanufacturing process having demonstrated economic, social, and environmental benefits, many original equipment manufacturers (OEMs) have not engaged in the remanufacturing process themselves, as they often outsource it to a third party. In practice, such outsourcing usually involves two different options/modes for OEMs with consideration of take-back operations: (1) owning the reverse channel and collecting cores directly (Model D) or (2) outsourcing these operations to a third-party remanufacturer (TPR) and collecting cores indirectly (Model I). However, this raises the important question of whether OEMs should also outsource their reverse channels to third-party remanufacturers when outsourcing remanufacturing. Furthermore, there needs to be an investigation of which method is more beneficial in terms of economic, social, and environmental outcomes. This paper uses modelling to investigate the costs and benefits of these options in terms of sustainability. We found that, compared to Model I, the OEM conducting take-back operations itself can achieve the overall better outcomes for all economic, social, and environmental situations.

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Integrated economic and environmental models for a multi stage cold supply chain under carbon tax regulation

Cited by 148 publications

References 25 publications

Joint Emission Reduction Strategy in Green Supply Chain under Environmental Regulation

Joint Emission Reduction Strategy in Green Supply Chain under Environmental Regulation

Low Carbon Supply Chain Coordination for Imperfect Quality Deteriorating Items

Owning or Outsourcing? Strategic Choice on Take-Back Operations for Third-Party Remanufacturing

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