Optimal Strategies for Low Carbon Supply Chain with Strategic Customer Behavior and Green Technology Investment
Climate change is mainly caused by excessive emissions of carbon dioxide and other greenhouse gases. In order to reduce carbon emissions, cap and trade policy is implemented by governments in many countries, which has significant impacts on the decisions of companies at all levels of the low carbon...
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| Format: | Article |
| Language: | English |
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Wiley
2016-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2016/9645087 |
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| author | Wen Jiang Xu Chen |
| author_facet | Wen Jiang Xu Chen |
| author_sort | Wen Jiang |
| collection | DOAJ |
| description | Climate change is mainly caused by excessive emissions of carbon dioxide and other greenhouse gases. In order to reduce carbon emissions, cap and trade policy is implemented by governments in many countries, which has significant impacts on the decisions of companies at all levels of the low carbon supply chain. This paper investigates the decision-making and coordination of a low carbon supply chain consisting of a low carbon manufacturer who produces one product and is allowed to invest in green technology to reduce carbon emissions in production and a retailer who faces stochastic demands formed by homogeneous strategic customers. We investigate the optimal production, pricing, carbon trading, and green technology investment strategies of the low carbon supply chain in centralized (including Rational Expected Equilibrium scenario and quantity commitment scenario) and decentralized settings. It is demonstrated that quantity commitment strategy can improve the profit of the low carbon supply chain with strategic customer behavior. We also show that the performance of decentralized supply chain is lower than that of quantity commitment scenario. We prove that the low carbon supply chain cannot be coordinated by revenue sharing contract but by revenue sharing-cost sharing contract. |
| format | Article |
| id | doaj-art-e0649a35d00241d296952fce40daddd6 |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2016-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-e0649a35d00241d296952fce40daddd62025-08-20T03:26:05ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2016-01-01201610.1155/2016/96450879645087Optimal Strategies for Low Carbon Supply Chain with Strategic Customer Behavior and Green Technology InvestmentWen Jiang0Xu Chen1College of Architecture and Urban-Rural Planning, Sichuan Agricultural University, Chengdu 611830, ChinaSchool of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, ChinaClimate change is mainly caused by excessive emissions of carbon dioxide and other greenhouse gases. In order to reduce carbon emissions, cap and trade policy is implemented by governments in many countries, which has significant impacts on the decisions of companies at all levels of the low carbon supply chain. This paper investigates the decision-making and coordination of a low carbon supply chain consisting of a low carbon manufacturer who produces one product and is allowed to invest in green technology to reduce carbon emissions in production and a retailer who faces stochastic demands formed by homogeneous strategic customers. We investigate the optimal production, pricing, carbon trading, and green technology investment strategies of the low carbon supply chain in centralized (including Rational Expected Equilibrium scenario and quantity commitment scenario) and decentralized settings. It is demonstrated that quantity commitment strategy can improve the profit of the low carbon supply chain with strategic customer behavior. We also show that the performance of decentralized supply chain is lower than that of quantity commitment scenario. We prove that the low carbon supply chain cannot be coordinated by revenue sharing contract but by revenue sharing-cost sharing contract.http://dx.doi.org/10.1155/2016/9645087 |
| spellingShingle | Wen Jiang Xu Chen Optimal Strategies for Low Carbon Supply Chain with Strategic Customer Behavior and Green Technology Investment Discrete Dynamics in Nature and Society |
| title | Optimal Strategies for Low Carbon Supply Chain with Strategic Customer Behavior and Green Technology Investment |
| title_full | Optimal Strategies for Low Carbon Supply Chain with Strategic Customer Behavior and Green Technology Investment |
| title_fullStr | Optimal Strategies for Low Carbon Supply Chain with Strategic Customer Behavior and Green Technology Investment |
| title_full_unstemmed | Optimal Strategies for Low Carbon Supply Chain with Strategic Customer Behavior and Green Technology Investment |
| title_short | Optimal Strategies for Low Carbon Supply Chain with Strategic Customer Behavior and Green Technology Investment |
| title_sort | optimal strategies for low carbon supply chain with strategic customer behavior and green technology investment |
| url | http://dx.doi.org/10.1155/2016/9645087 |
| work_keys_str_mv | AT wenjiang optimalstrategiesforlowcarbonsupplychainwithstrategiccustomerbehaviorandgreentechnologyinvestment AT xuchen optimalstrategiesforlowcarbonsupplychainwithstrategiccustomerbehaviorandgreentechnologyinvestment |