Optimal production and emission reduction policies for a remanufacturing firm considering deferred payment strategy

li, Qianru; Chen, Weida; Zhang, Yongming

doi:10.3934/jimo.2020078

Cited by 4 publications

(3 citation statements)

References 39 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Wang and Chen successively examined manufacturing/remanufacturing decisions under conditions with capital constraints and bank loans [33]. Introducing deferred payment to a third-party recycler, Li et al studied a joint decision on recycling, remanufacturing, and reducing emissions under the cap-and-trade and government's subsidy policies [34]. Moreover, focusing on diverse financing strategies, Zhang et al investigated the optimal selection of the third-party remanufacturing modes (outsourcing vs. authorization) under the financing portfolio strategy of trade credit and bank loans [35].…”

Section: Literature Reviewmentioning

confidence: 99%

Effects of the Carbon Credit Policy on the Capital-Constrained Manufacturer’s Remanufacturing and Emissions Decisions

Wang

Wang²,

2023

IJERPH

View full text Add to dashboard Cite

Considering the effect of carbon emission factors on financing, a carbon credit policy was introduced to explore the capital-constrained manufacturer’s remanufacturing and carbon emission decisions. Meanwhile, this paper also explored the bank’s optimal strategy according to the manufacturer’s decision feedback. The results showed the following: (1) The restraining effect of the carbon threshold will directly affect whether the carbon credit policy can positively affect manufacturers’ remanufacturing and carbon emissions. (2) When the carbon savings level of remanufactured products is higher, the carbon credit policy can better promote remanufacturing activities and effectively control total carbon emissions. (3) The bank’s optimal preferential interest rate for loans is inversely correlated with the carbon threshold. Moreover, under a given carbon threshold, a higher preferential interest rate for loans is also conducive to manufacturers carrying out more or a more extensive range of remanufacturing activities while banks maximize total profit. Based on these findings, this paper also provided managerial insights for manufacturers and policy implications for policy-makers.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Effects of the Carbon Credit Policy on the Capital-Constrained Manufacturer’s Remanufacturing and Emissions Decisions

Wang

Wang²,

2023

IJERPH

View full text Add to dashboard Cite

show abstract

“…What is more, the retailer's higher level of risk aversion is beneficial to both the TPR and the manufacturer, while it will sacrifice the retailer's own expected utility. Li et al. (2021) aimed to the optimal pricing decisions on the CLSC consists of a risk-neutral manufacturer and one risk-averse retailer, obtaining the result that if the manufacturer takes the retailer's fairness concern into consideration, the manufacturer's revenue will increase when the fairness concern parameter inclines, while decreasing with the retailer's risk aversion grows.…”

Section: Literature Reviewmentioning

confidence: 99%

“…This section will discuss consumer surplus under the two financing strategies. According to the consumer surplus calculating method in literature Li et al (2021), and Zou et al (2016), the CS of the two financing strategies, which is denote as Proposition 5.…”

Section: Consumer Surplus Comparisonmentioning

confidence: 99%

Optimal production and financing strategies for capital-constrained closed-loop supply chain under risk aversion

Xia

Chen

Liu

2022

Self Cite

View full text Add to dashboard Cite

Purpose The purpose of this paper is to investigate the optimal production and financing strategies for the closed-loop supply chain (CLSC) composed of a capital-constrained original equipment manufacturer (OEM) and a risk-averse authorized remanufacturer (RM).Design/methodology/approach The authors formulate four models with different scenarios, namely, the OEM has sufficient capital; the OEM has limited capital without financing; the OEM adopts debt financing strategy; and the OEM adopts equity financing strategy. The equilibrium solutions of each scenario are obtained by backward induction method, the influences of risk aversion coefficient on the equilibrium solutions are examined and the OEM's optimal financing strategy is found by comparison analysis.FindingsWhen the OEM's initial capital is limited and the equity dividend ratio is less than a certain threshold, the equity financing strategy is more advantageous for the OEM. However, if the OEM's initial capital is extremely scarce and the dividend proportion is large, the OEM prefers the debt financing strategy. When considering financing, consumer surplus always decreases as the risk aversion factor increases; the debt financing strategy is more environmentally friendly compared with the equity financing strategy. Only the debt financing strategy can make both members in the CLSC achieve a win-win situation in a certain region when the dividend ratio is sufficiently large.Research limitations/implications It will be more fascinating if the model extends to such a case that the production operation situation in the CLSC composed of multiple OEMs in multiple periods. Furthermore, the remanufacturer's risk-averse information is asymmetry may be more realistic in our daily life.Originality/valueThere are three main differences from the existing research. One is that the remanufacturer's risk aversion originates from the uncertain remanufacturing cost instead of the uncertain market demand. Another is that the boundary conditions of the OEM prefer to adopt debt financing is obtained through the envelope theorem with Lagrange multiplier method. Last but not the least, this paper provides a good theoretical reference and practical guidance for the OEM to make the rational financing strategy selection in face of different degree of capital scarcity in the CLSC system. The value of the three aspects provides a theoretical basis for the optimal operation decisions of capital-constrained manufacturer considering the remanufacturer's risk aversion in the CLSC operation system.

show abstract

Is carbon asset pledge financing contributing to the operation of emission-dependent engineering machinery remanufacturing with emission abatement?

Fu,

Chen,

Ding

et al. 2023

International Journal of Production Economics

View full text Add to dashboard Cite

Optimal production and emission reduction policies for a remanufacturing firm considering deferred payment strategy

Cited by 4 publications

References 39 publications

Effects of the Carbon Credit Policy on the Capital-Constrained Manufacturer’s Remanufacturing and Emissions Decisions

Effects of the Carbon Credit Policy on the Capital-Constrained Manufacturer’s Remanufacturing and Emissions Decisions

Optimal production and financing strategies for capital-constrained closed-loop supply chain under risk aversion

Is carbon asset pledge financing contributing to the operation of emission-dependent engineering machinery remanufacturing with emission abatement?

Contact Info

Product

Resources

About