Optimal operational and financing portfolio strategies for a capital-constrained closed-loop supply chain with supplier-remanufacturing

Zhang, Yongming; Chen, Weida

doi:10.1016/j.cie.2022.108133

Cited by 21 publications

(7 citation statements)

References 46 publications

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“…(2023) investigated the manufacturer's optimal carbon emission reduction decisions in an e-commerce supply chain under the bank credit and cost-sharing financing schemes. In a closed-loop supply chain comprising a supplier and a capital-constrained OEM, Zhang and Chen (2022) have compared the effects of three different financing strategies on the supplier's remanufacturing decisions. Differing from the aforementioned studies, this study assumes that green R&D is beneficial in lowering operating or manufacturing costs.…”

Section: Literature Reviewmentioning

confidence: 99%

External financing, channel power structure and product green R&D decisions in supply chains

Fan,

Li,

et al. 2023

MSCRA

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PurposeThis study aims to focus on the optimal green R&D of a capital-constrained supply chain under different channel power structures as well as the impact of capital constraint, financing cost, channel power structure and cost-reducing efficiency on green R&D and supply chain profitability.Design/methodology/approachA two-echelon supply chain is considered. The upstream firm engages in green R&D but has capital constraints that can be overcome by external financing. Green R&D is beneficial to reduce production costs and increase consumer demand. Based on whether or not the upstream firm is capital constrained and dominates the supply chain, four models are developed.FindingsCapital constraints significantly lower green R&D and supply chain profitability. Transferring leadership from the upstream to the downstream firms leads to higher green R&D levels and downstream firm profitability, whereas the upstream firm's profitability is increased (decreased) if green R&D investment efficiency is high (low) enough. Greater financing costs reduce green R&D and downstream firm profitability; however, the upstream firm's profitability under the model in which it functions as the follower increases if the initial capital is sufficient. More importantly, empirical analysis based on practice data is used to verify the theoretical results reported above.Practical implicationsThis study reveals how upstream firms in supply chains decide green R&D decisions in situations with capital constraints, providing managers and governments with an understanding of the impact of capital constraint, channel power structure, financing cost and cost-reducing efficiency on supply chain green R&D and profitability.Originality/valueThe major contributions are the exploration of supply chain green R&D by taking into consideration channel power structures and cost-reducing efficiency and the validation of theoretical results using practice data.

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Section: Literature Reviewmentioning

confidence: 99%

External financing, channel power structure and product green R&D decisions in supply chains

Fan,

Li,

et al. 2023

MSCRA

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“…Ref. [ 38 ] studied the optimal green remanufacturing production decisions under the prepayment model. Subsequently, scholars focused on how to utilize prepayment to solve the problem of insufficient environmental protection funds in a supply chain.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Ref. [ 38 ] worked out the optimal prepaid ratio required in the green supply chain. However, the impact of carbon policy was not discussed in their model.…”

Section: Literature Reviewmentioning

confidence: 99%

Supply Chain Coordination under Carbon Emission Tax Regulation Considering Greening Technology Investment

Wei

Huang

2022

IJERPH

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In this paper, we firstly derive the optimal strategies, including greening technology investment, production volume and order quantity decisions with stochastic demand, for the emissions-dependent supply chain composed of one manufacturer and one retailer. Then, an advance purchase discount (APD) contract and an option contract are applied to coordinate the supply chain. Moreover, an innovative prepayment-based option (PBO) contract is designed based on an APD contract and an option contract. We discuss the cash flow, the inventory risk allocation and the impacts of carbon emission tax under each contract. It is found that considering improving cash flow, preselling (or option selling) as a means of supporting the manufacturer with sufficient cash flow will help expand production and invest in greening technology. From the perspective of avoiding inventory risk, the APD contract benefits the manufacturer while the option contract benefits the retailer. However, the PBO contract generates intermediate allocations of inventory risk between manufacturer and retailer.

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“…In real‐world operations, financial constraints often pose significant challenges for remanufacturers, especially for small and medium‐sized businesses and startups (Zhang & Chen, 2022). In the context of reducing carbon emissions, the financial shortage issue is more prominent (An et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

Production and carbon emission reduction decisions of remanufacturing firms with low‐carbon credit financing under uncertain demand

Chen,

Chen

2024

Manage Decis Econ

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This paper investigates the optimal production and carbon reduction strategy for a capital‐constrained remanufacturing firm considering demand uncertainty. The remanufacturing firm can accept low‐carbon credit financing. We construct optimization models with no financing and low‐carbon credit financing and analyze the impacts of capital, carbon emission caps, and other factors on the remanufacturer's decision and profit. The results show that (i) the output of remanufactured products and overall profit are higher when using low‐carbon credit financing, regardless of strict carbon emission conditions; (ii) low‐carbon credit can help remanufacturers withstand the impact of carbon price fluctuations; (iii) the demand uncertainty of new and remanufactured products has opposite effects on carbon emission reduction investment; (iv) increasing the carbon cap can enhance the remanufacturing level while a high carbon cap reduce incentives to remanufacture.

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Optimal operational and financing portfolio strategies for a capital-constrained closed-loop supply chain with supplier-remanufacturing

Cited by 21 publications

References 46 publications

External financing, channel power structure and product green R&D decisions in supply chains

External financing, channel power structure and product green R&D decisions in supply chains

Supply Chain Coordination under Carbon Emission Tax Regulation Considering Greening Technology Investment

Production and carbon emission reduction decisions of remanufacturing firms with low‐carbon credit financing under uncertain demand

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