Integrated Optimization of Sustainable Transportation and Inventory with Multiplayer Dynamic Game under Carbon Tax Policy

Abstract

Growth in environmental sustainability has prompted the logistics industry to seek sustainable development, and carbon tax policies are considered an effective approach to reducing carbon emissions. This study investigates the optimization of sustainable transportation and inventory under a carbon tax policy and explores effective methods for coordinating the interests of governments and enterprises. The results can provide insights into sustainable logistics for decision-making by enterprises and policy-making by governments. We first examine a Stackelberg game model and design an iterative solution to optimize sustainable transportation and inventory under the carbon tax policy. We then establish a three-stage dynamic game model to optimize the wholesale price, carbon tax rate, and proportion of sustainable investment shared by the government. Furthermore, we perform a simulation to identify the optimal solution of the three-stage game, and we compare the simulation results with a numerical example. The results indicate that a carbon tax policy can improve social welfare and the sustainability of transportation and inventory but could hinder corporate profits. An appropriate sustainable investment-sharing strategy could compensate for the shortcomings of the carbon tax policy and result in positive outcomes for governments and enterprises.

The application of Industry 4.0 technologies in sustainable logistics: a systematic literature review (2012–2020) to explore future research opportunities

“…The combination of both IoT and CPS provides a quick interconnection of smart assets in a warehouse, e.g., pallets, forklifts, machines, and robots. This enables real-time data collection and system monitoring of goods, equipment, and personnel, which improves warehousing operations, decision making, safety, and resource utilization (Jabbar et al 2018;Tang et al 2020). Besides, by using IoT, cloud technologies, and blockchain (Shoaib et al 2020), traceability and transparency can be facilitated, and the errors and delays of warehousing operations can be minimized (Lee et al 2018).…”

“…Many believe IoT-based platforms, which establish the connection between the physical world and the digital world (Tang et al 2020), are the initial step to achieve a high-level digitalization and system integration of different logistics operations. Big data analytics and AI are digital elements for trend analysis, facility control, risk management, and other logistics operations (Bag et al 2020b).…”

Effect of Optimal Subsidy Rate and Strategic Behaviour of Supply Chain Members under Competition on Green Product Retailing

“…In green supply chain management, government organizations play an important role by providing subsidy to supply chain members [15][16][17][18][19][20][21][22][23][24][25][26]. However, the impact of government subsidy on manufacturers' green technology investment decisions and strategic collusion between horizontal members under chain-to-chain competition have not been well understood in the literature.…”

Effect of Carbon Emission and Shelf-Life on Random Emission and Random Price Dependent Demand of a Perishable Product in Interval Environment

“…For more research on EOQ inventory model under carbon emission we referChristata and Daryanto (2020). Dutta (2017), made an extensive research on effect of green investment on production inventory with carbon emission under bounded production limit the research illustrate that, carbon emission cost has positive effect on environment and negative effect on GDP.A three-stage dynamic game model is developed by Tang et. al (2020) and proposed an inventory model to optimize sustainable transportation cost, wholesale price and a carbon tax policy.…”