Optimal Decisions for Carbon Emission Reduction through Technological Innovation in a Hybrid-Channel Supply Chain with Consumers’ Channel Preferences

This paper integrates carbon emission reduction via technological innovation with consumer channel preferences in both single- and dual-channel supply chains selling low-carbon products. Linear demand functions which simultaneously reflect the consumers’ channel preferences and low-carbon sensitivit...

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Main Authors: Chong Xin, Yunzhu Zhou, Xiaochen Zhu, Lin Li, Xin Chen
Format: Article
Language:English
Published: Wiley 2019-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2019/4729358
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author Chong Xin
Yunzhu Zhou
Xiaochen Zhu
Lin Li
Xin Chen
author_facet Chong Xin
Yunzhu Zhou
Xiaochen Zhu
Lin Li
Xin Chen
author_sort Chong Xin
collection DOAJ
description This paper integrates carbon emission reduction via technological innovation with consumer channel preferences in both single- and dual-channel supply chains selling low-carbon products. Linear demand functions which simultaneously reflect the consumers’ channel preferences and low-carbon sensitivity are developed by considering the consumers’ segmentation. On this basis, we present two Stackelberg game models: one for each of the single- and dual-channel supply chains. In the first, the manufacturer sells low-carbon products through a traditional retailer who has a physical store, while in the second the manufacturer opens an online direct channel to compete with the traditional retailer. For the two models developed, the optimal pricing decisions, carbon emission reduction level, and profits are derived and discussed. Numerical examples are given to verify the effectiveness and practicality of the proposed models and solutions. The results show that supply chain members’ profits are affected by system parameters such as the carbon price, consumers’ low-carbon sensitivity, channel preference, etc. Furthermore, although the aforementioned parameters stimulate the manufacturer to reduce carbon emission, this does not always benefit the retailer. Comparison of the two models indicates that dual-channel selling is only the better choice for both the manufacturer and the retailer under certain conditions.
format Article
id doaj-art-9d3a64fea7f14df5b271d043c6413120
institution Kabale University
issn 1026-0226
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language English
publishDate 2019-01-01
publisher Wiley
record_format Article
series Discrete Dynamics in Nature and Society
spelling doaj-art-9d3a64fea7f14df5b271d043c64131202025-02-03T05:44:38ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2019-01-01201910.1155/2019/47293584729358Optimal Decisions for Carbon Emission Reduction through Technological Innovation in a Hybrid-Channel Supply Chain with Consumers’ Channel PreferencesChong Xin0Yunzhu Zhou1Xiaochen Zhu2Lin Li3Xin Chen4School of Business Administration, Northeastern University, Shenyang 110169, ChinaSchool of Business Administration, Northeastern University, Shenyang 110169, ChinaCollege of Information Science and Engineering, Northeastern University, Shenyang 110169, ChinaSchool of Business Administration, Northeastern University, Shenyang 110169, ChinaSchool of Business Administration, Northeastern University, Shenyang 110169, ChinaThis paper integrates carbon emission reduction via technological innovation with consumer channel preferences in both single- and dual-channel supply chains selling low-carbon products. Linear demand functions which simultaneously reflect the consumers’ channel preferences and low-carbon sensitivity are developed by considering the consumers’ segmentation. On this basis, we present two Stackelberg game models: one for each of the single- and dual-channel supply chains. In the first, the manufacturer sells low-carbon products through a traditional retailer who has a physical store, while in the second the manufacturer opens an online direct channel to compete with the traditional retailer. For the two models developed, the optimal pricing decisions, carbon emission reduction level, and profits are derived and discussed. Numerical examples are given to verify the effectiveness and practicality of the proposed models and solutions. The results show that supply chain members’ profits are affected by system parameters such as the carbon price, consumers’ low-carbon sensitivity, channel preference, etc. Furthermore, although the aforementioned parameters stimulate the manufacturer to reduce carbon emission, this does not always benefit the retailer. Comparison of the two models indicates that dual-channel selling is only the better choice for both the manufacturer and the retailer under certain conditions.http://dx.doi.org/10.1155/2019/4729358
spellingShingle Chong Xin
Yunzhu Zhou
Xiaochen Zhu
Lin Li
Xin Chen
Optimal Decisions for Carbon Emission Reduction through Technological Innovation in a Hybrid-Channel Supply Chain with Consumers’ Channel Preferences
Discrete Dynamics in Nature and Society
title Optimal Decisions for Carbon Emission Reduction through Technological Innovation in a Hybrid-Channel Supply Chain with Consumers’ Channel Preferences
title_full Optimal Decisions for Carbon Emission Reduction through Technological Innovation in a Hybrid-Channel Supply Chain with Consumers’ Channel Preferences
title_fullStr Optimal Decisions for Carbon Emission Reduction through Technological Innovation in a Hybrid-Channel Supply Chain with Consumers’ Channel Preferences
title_full_unstemmed Optimal Decisions for Carbon Emission Reduction through Technological Innovation in a Hybrid-Channel Supply Chain with Consumers’ Channel Preferences
title_short Optimal Decisions for Carbon Emission Reduction through Technological Innovation in a Hybrid-Channel Supply Chain with Consumers’ Channel Preferences
title_sort optimal decisions for carbon emission reduction through technological innovation in a hybrid channel supply chain with consumers channel preferences
url http://dx.doi.org/10.1155/2019/4729358
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