Production and transportation outsourcing decisions in the supply chain under single and multiple carbon policies

Li, Jian; Su, Qin; Ma, Li

doi:10.1016/j.jclepro.2016.09.157

Cited by 95 publications

(43 citation statements)

References 24 publications

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“…eir numerical study showed that the 3PL-led decision game performs worst. Li et al [42] addressed the transportation outsourcing problems of a supply chain under various carbon tax policies and found that a strict carbon tax policy and increasing energy prices can force a manufacturer to outsource more transportation services to a professional 3PL firm. Jamali and Rasti-Barzoki [43] investigated the effects of reduced carbon emissions by a 3PL firm on the profitability of a three-echelon supply chain and asserted that in order to reduce greenhouse gas emissions, 3PL firms should deliver products to retailers using green transportation means.…”

Section: 3mentioning

confidence: 99%

Strategies on Pricing, Greenness Degree, and Carbon Emission Reduction in Supply Chains under Single and Cross Distributions of Green and Nongreen Products

Lee

2020

Mathematical Problems in Engineering

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Environmental sustainability has become a critical indicator in evaluations of the success and efficiency of supply chain management. In this study, we consider a two-echelon supply chain composed of two competing manufacturers, two retailers, and one third-party logistics firm. The first manufacturer produces a green product, while the second manufacturer produces a nongreen product. Each of the two retailers can sell only a green product, only a nongreen product, or both green and nongreen products. All products are initially stored by the third-party logistics firm and delivered to the retailers. This study investigates product pricing, the degree of greenness of the first manufacturer’s product, and carbon emission reduction as carried out by the third-party logistics firm. Using a three-stage Stackelberg game framework, we present the equilibrium strategy on pricing, the degree of greenness, and carbon emission reduction for five different distribution channel structures. One of our major findings is that competition between the two manufacturers has a positive influence on the profitability of the supply chain. We also find that it is desirable for each manufacturer to choose a cross-distribution channel for its products considering the sustainability and profitability of the supply chain.

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Section: 3mentioning

confidence: 99%

Strategies on Pricing, Greenness Degree, and Carbon Emission Reduction in Supply Chains under Single and Cross Distributions of Green and Nongreen Products

Lee

2020

Mathematical Problems in Engineering

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“…Dwicahyani et al [34] incorporated carbon emission costs, energy cost, and waste disposal for a two-echelon supply chain with remanufacturing. Li et al [35] considered joint carbon tax and cap-and-trade policies for a two-echelon supply chain production-distribution model with transportation outsourcing. Wangsa [36] incorporated the government's penalties and incentive policies to reduce carbon emissions.…”

Section: Low-carbon Supply Chain Managementmentioning

confidence: 99%

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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“…From the enterprise perspective, researchers usually focus on the relationship between production decisions and carbon regulations, such as the manufacturing and transportation outsourcing in supply chains under single and multiple carbon regulations (Li, Su, & Ma, 2017), economic order quantity (EOQ) with cap-and-trade and carbon tax (He, Zhang, Xu et al, 2015), and joint production and pricing of multiple products in each scenario (Xu, Xu, & He, 2016).…”

Section: Introductionmentioning

confidence: 99%

Carbon tax or cap-and-trade: Which is more viable for Chinese remanufacturing industry?

Yang

Sun

et al. 2020

Journal of Cleaner Production

118

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The debate between cap-and-trade and carbon tax, two major carbon emission reduction mechanisms to deal with global warming, has been going on for years unsettled. The strategy to implement one of them or both is by far mainly addressed at the national level, and there is a need to customize the policy-making for different sectors, especially the emerging remanufacturing industry that has the great potential to reduce material and energy consumptions. Based on a closed-loop supply chain model, this study analyzes the tradeoffs between carbon tax and cap-and-trade with a series of numerical studies. While keeping carbon emissions under control, cap-and-trade demonstrates a better fit to remanufacturing: its performances on manufacturer profit, social welfare, and consumer surplus surpass carbon tax' in nine, eight, and six out of nine groups respectively. Only when the carbon quota level is too high, the cap-and-trade is possible to lose. In addition, this study examines two government-to-enterprise-subsidy (G-toE -S) strategies, direct subsidy and policy bias, and find both helpful but almost no difference in their impacts. The findings yield useful insights into the industry-wise design of carbon emission reduction mechanisms for remanufacturing and similar sectors.

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Production and transportation outsourcing decisions in the supply chain under single and multiple carbon policies

Cited by 95 publications

References 24 publications

Strategies on Pricing, Greenness Degree, and Carbon Emission Reduction in Supply Chains under Single and Cross Distributions of Green and Nongreen Products

Strategies on Pricing, Greenness Degree, and Carbon Emission Reduction in Supply Chains under Single and Cross Distributions of Green and Nongreen Products

Low Carbon Supply Chain Coordination for Imperfect Quality Deteriorating Items

Carbon tax or cap-and-trade: Which is more viable for Chinese remanufacturing industry?

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