Low Carbon Distribution Channel Coordination with a Capital-Constrained Retailer

Abstract

Capital constraints exist in many supply chains. We examine a low carbon distribution channel that consists of a manufacturer and a retailer, in which the retailer is constrained by capital. The retailer can be financed by bank credit from a competitive bank market. A Stackelberg model is developed to analyze the integrated decision-making process of ordering, financing, and emission reduction. By comparing the decentralized and centralized channels, we obtain that the manufacturer's green technology investment should be linearly proportional to the retailer's order quantity in both channels. Thus, a large order quantity leads to increased efforts to reduce emissions. Results further show that the centralized channel in some cases has fewer emissions and can generate more profits for the whole supply chain compared with the decentralized channel. We therefore propose a revenue sharing contract with a function form to coordinate the distribution channel. When the government allocates appropriate quotas to the supply chain, high carbon price can benefit the environment and supply chain efficiency.

Behavior Choice and Emission Reduction in a Dynamic Supply Chain with a Capital‐Constrained Retailer

“…e authors conducted empirical research on the pilot emissions trading mechanism in Hubei, China, to explore the effect of carbon quota constraints. Wang, Cheng, and Zhang [27] pointed out that the emission trading mechanism is more flexibility and cost-effectiveness and can become a common way to achieve emission reduction targets. Peng, Pang, and Cong [28] and Xu, Wang, and Zhao [29] improved revenue sharing contracts that can coordinate supply chains via emission reduction subsidy and cost-sharing mechanisms, respectively.…”

“…For instance, Wang, Yu, and Jin [41] pointed out that capital constraints are an important factor that restricts the development of SME e-commerce platforms. Wang, Cheng, and Zhang [27] showed that bank credit can enhance the overall efficiency of the supply chain with a SME retailer and achieve Pareto improvement for both supply chain members via a functional revenue sharing contract. Considering two retailers with limited capital, Yang, Miao, and Zhao [42] examined the impact of credit strategy on green supply chain performance.…”

“…If the actual carbon emissions exceed the quota, the manufacturer must buy the permits in carbon trading markets; if the manufacturer has a surplus quota, it can sell the permits. en the manufacturer's carbon emission cost at time t can be written as [27] P c e 0 − Δe(t…”

Network Design towards Sustainability of Chinese Baijiu Industry from a Supply Chain Perspective

“…It has now been widely recognized that the Earth's limited natural resources and assimilation capacity are unsustainable in the face of increased global development [11,40,41]. Production mode must be changed to achieve a sustainable economy [42]. One of the most considered environmental objectives has been the minimization of emissions that negatively impact human health and climate [43,44].…”

Processo De Tomada De Decisão Sobre Sustentabilidade Na Manufatura: Um Estudo De Casos Múltiplos

“…Entre estes modelos analíticos que demandam dados mais focados, é possível observar que o tema ambiental é frequentemente relacionado a questões associadas à emissão de gases do efeito estufa, tanto por parte da empresa quanto por parte dos demais agentes da cadeia (e.g., Awad & Hassan, 2018;Darom et al, 2018;Wang et al, 2018;Matar & Elshurafa, 2017;Ben-Salem et al, 2016;Jain et al, 2016;Hugo et al, 2005). Eles exploram métodos multicritérios de decisão voltados, por exemplo, ao mercado de carbono, regulamentações (principalmente quando são estabelecidos limites de emissão) e custos associados às emissões, utilizando-se métodos matemáticos de otimização.…”