Pricing, carbon emission reduction and recycling decisions in a closed-loop supply chain under uncertain environment

Yan, Guangzhou; Song, Qinyu; Ni, Yaodong; Yang, Xiangfeng

doi:10.3934/jimo.2021181

Cited by 16 publications

(7 citation statements)

References 43 publications

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“…This was endorsed by Mathieu (2001), Oliva and Kallenberg (2003) and Vandermerwe and Rada (1988), who stated that such a transition has helped manufacturing firms increase their profitability and ensure a reliable market share. Yan et al (2021) are of the opinion that eco-friendly and carbon credit-saving manufacturers, such as those who servitise, command better prices in the market, which argues well for servitization. Mattsson (1973) and Hannaford (1976) were some of the pioneers in writing about servitization when they put forward the system-selling concept.…”

Section: Structure Of Research Papermentioning

confidence: 99%

Attribute-based choice model and willingness to pay for industrial services

Rakesh

Menon

Raman

2023

BIJ

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PurposePricing is widely acknowledged as a market entry challenge for servitising companies. The purpose of this research is to ascertain the attributes that contribute to willingness to pay (WTP) for industrial services and suggest incorporating those attributes to a pricing model.Design/methodology/approachThree attributes (Quality of Service, Nearness of Service Provider and Brand Equity of Service Provider) were analyzed at three respective levels to ascertain their importance on WTP. Conventional conjoint analysis (CCA), using an orthogonal design, was the method used. The 346 respondents were decision-makers and top management professionals from various industries.FindingsBrand Equity emerged as the most significant attribute contributing to WTP, having more than 45% importance – followed by the Quality and Nearness.Research limitations/implicationsThe scope of the study is limited to the industries and its Allies. However, the relative importance of the attributes may vary depending on the type of service.Practical implicationsThe importance of attributes and their WTP preference helps future researchers create a pricing model involving these attributes. This helps service providers price their services rationally, thus succeeding in servitization.Social implicationsProduct life is extended because the manufacturers themselves are servicing it and also help recycle the product with their expertise. Servitization is also helpful for the Indian economy, as it is turning into a manufacturing economy.Originality/valueThis research investigates three attributes that contribute to WTP, in accordance with their level of contribution. It also provides a direction to establish an adequate pricing model for industrial services.

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Section: Structure Of Research Papermentioning

confidence: 99%

Attribute-based choice model and willingness to pay for industrial services

Rakesh

Menon

Raman

2023

BIJ

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“…e findings indicated that CLSC benefits are maximized under centralized decision making. Yan et al [34] examined the optimal collecting strategy in a CLSC consisting of a manufacturer, retailer, and third-party collector, considering carbon cap-and-trade policies. Xu et al [35] examined how CLSCs with hybrid and dedicated structures were affected by several carbon policies.…”

Section: Ce Reduction In Supplymentioning

confidence: 99%

Optimal Decisions in the Closed‐Loop Supply Chain considering Capacity Constraints and Stochastic Demand under the Cap‐and‐Trade Regulation

Jian

Shao

2022

Complexity

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In the current context of resource scarcity and increased pollution, enterprises need to better allocate capacity and achieve carbon emission reduction. We examine the optimal decision problem for a closed-loop supply chain (CLSC) considering capacity constraints and stochastic demand under a cap-and-trade system. A two-level CLSC comprising a supplier and a manufacturer is established. To make the model more realistic, we treat demand as a random variable, consider the manufacturer’s production capacity within a certain upper limit, and allow the manufacturer to make investments to expand capacity to complete production demand. Based on this CLSC, the collection activities of the supplier and manufacturer are considered. Meanwhile, government carbon limits and carbon trading controls on the manufacturer are considered based on carbon reduction by enterprises. Through modeling and analysis, optimal decisions are derived for the amount of capacity investment, level of carbon emission reduction, and collection price variables. The results indicate that supplier collection has a positive effect on the sustainability of the CLSC. Moreover, the government’s carbon quota and carbon trading control of manufacturers can effectively reduce the carbon emissions of the CLSC, encourage enterprises to reduce carbon emissions, and improve the sustainability of the CLSC.

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“…Since recycling of old products has actually become the choice of more and more manufacturers on the basis of low-carbon initiatives, the model established in this paper is more in line with the actual production process of manufacturer enterprises, and the conclusions drawn are more realistic and instructive. The following are the main contributions made by this paper: Most available articles are limited to examining restrictions on either the recycling rate or carbon trading price by law [ 17 , 18 , 19 , 20 ], or the comparison among different recycling channels and models as well as the advantages and disadvantages of different carbon rights allocation policies [ 21 , 22 , 23 , 24 , 25 , 26 , 27 ]. Different from most of the existing studies, this paper considers both the legal constraints on recycling rates and the carbon trading mechanism and studies their simultaneous effects on the decision making and profitability of members of the two-cycle closed-loop supply chain.…”

Section: Introductionmentioning

confidence: 99%

“…Most available articles are limited to examining restrictions on either the recycling rate or carbon trading price by law [ 17 , 18 , 19 , 20 ], or the comparison among different recycling channels and models as well as the advantages and disadvantages of different carbon rights allocation policies [ 21 , 22 , 23 , 24 , 25 , 26 , 27 ]. Different from most of the existing studies, this paper considers both the legal constraints on recycling rates and the carbon trading mechanism and studies their simultaneous effects on the decision making and profitability of members of the two-cycle closed-loop supply chain.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Legal Recycling Constraints and Carbon Trading Mechanisms on Decision Making in Closed-Loop Supply Chain

Wang

Zhou

2022

IJERPH

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To investigate how legal constraints on the recycling rate of used products and carbon trading mechanisms affect the profits and other decisions of supply chain system members, this paper develops and solves a two-cycle game model in which the manufacturer dominates while the retailer takes a secondary position; the manufacturer produces only non-low-carbon new products in the first cycle and both new and low-carbon remanufactured products in the second cycle. Simultaneously, the effects of parameters such as recovery rate, unit carbon trading price, and carbon emission reduction factor on the decision making of members of the supply chain system are also discussed. Finally, the conclusions are verified by numerical analysis: (1) When carbon reduction is low, the manufacturer will choose the highest recycling rate to obtain the highest profit, and when carbon reduction is high, manufacturers tend to choose not to recycle when the minimum recycling rate bound by law harms the interests of manufacturers. (2) Under the implementation of the carbon trading mechanism, the unit carbon trading price affects the profits of the members of the supply chain system depending on the size of the carbon emission reduction, and the two are negatively correlated at lower carbon emission reductions and positively correlated at higher carbon emission reductions. (3) From the perspective of supply chain system members’ interests, legal constraints and the existence of carbon trading mechanisms are not always conducive to increasing the margins of members of the supply chain system, both relevant to the size of carbon emission reductions. (4) From the perspective of environmental benefits, supply chain members do not need to pay economic costs in all cases to contribute to environmental benefits, and the existence of minimum recycling rate constraints and carbon trading mechanisms are conducive to achieving carbon reduction targets.

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Pricing, carbon emission reduction and recycling decisions in a closed-loop supply chain under uncertain environment

Cited by 16 publications

References 43 publications

Attribute-based choice model and willingness to pay for industrial services

Attribute-based choice model and willingness to pay for industrial services

Optimal Decisions in the Closed‐Loop Supply Chain considering Capacity Constraints and Stochastic Demand under the Cap‐and‐Trade Regulation

The Impact of Legal Recycling Constraints and Carbon Trading Mechanisms on Decision Making in Closed-Loop Supply Chain

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