IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v14y2021i22p7544-d677108.html
   My bibliography  Save this article

Optimal Pricing, Advertising, Production, Inventory and Investing Policies in a Multi-Stage Sustainable Supply Chain

Author

Listed:
  • Jia-Liang Pan

    (College of Management, National Taipei University of Technology, Taipei 10608, Taiwan)

  • Chui-Yu Chiu

    (Department of Industrial Engineering and Management, National Taipei University of Technology, Taipei 10608, Taiwan)

  • Kun-Shan Wu

    (Department of Business Administration, Tamkang University, Taipei 251301, Taiwan)

  • Chih-Te Yang

    (Department of International Business, Chien Hsin University of Science and Technology, Taoyuan 32097, Taiwan)

  • Yen-Wen Wang

    (Department of Industrial Management, Chien Hsin University of Science and Technology, Taoyuan 32097, Taiwan)

Abstract

In this paper, the study of a sustainable production–inventory model with price and advertisement dependent on demand considering carbon emission reduction technology is investigated. The aim of this paper is to determine the optimal appropriate pricing, advertising, production, inventory, and capital investment decisions under various carbon emission policies to maximize the joint total profit of a multi-stage supply chain system. Various theoretical results and an algorithm are provided to verify and obtain the optimal solution of the problem. Further, the model is verified by numerical examples, and the robustness check of parameter variation is also analyzed. Finally, some management implications for decision makers are drawn from numerical examples. In summary, this study puts forward more realistic modeling hypothesis, which is beneficial to the academic research, and the research results can provide relevant decision makers with a model for managing a sustainable supply chain.

Suggested Citation

  • Jia-Liang Pan & Chui-Yu Chiu & Kun-Shan Wu & Chih-Te Yang & Yen-Wen Wang, 2021. "Optimal Pricing, Advertising, Production, Inventory and Investing Policies in a Multi-Stage Sustainable Supply Chain," Energies, MDPI, vol. 14(22), pages 1-20, November.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:22:p:7544-:d:677108
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/14/22/7544/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/14/22/7544/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Battini, Daria & Persona, Alessandro & Sgarbossa, Fabio, 2014. "A sustainable EOQ model: Theoretical formulation and applications," International Journal of Production Economics, Elsevier, vol. 149(C), pages 145-153.
    2. Hammami, Ramzi & Nouira, Imen & Frein, Yannick, 2015. "Carbon emissions in a multi-echelon production-inventory model with lead time constraints," International Journal of Production Economics, Elsevier, vol. 164(C), pages 292-307.
    3. Ruifeng Gong & Jian Xue & Laijun Zhao & Oleksandra Zolotova & Xiaoqing Ji & Yan Xu, 2019. "A Bibliometric Analysis of Green Supply Chain Management Based on the Web of Science (WOS) Platform," Sustainability, MDPI, vol. 11(12), pages 1-18, June.
    4. Bibhas Chandra Das & Barun Das & Shyamal Kumar Mondal, 2014. "An integrated inventory model with delay in payment for deteriorating item under Weibull distribution and advertisement cum price-dependent demand," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 20(3), pages 341-368.
    5. YuJan Shen & KuanFu Shen & ChihTe Yang, 2019. "A Production Inventory Model for Deteriorating Items with Collaborative Preservation Technology Investment Under Carbon Tax," Sustainability, MDPI, vol. 11(18), pages 1-18, September.
    6. Tapan Kumar Datta, 2017. "Effect of Green Technology Investment on a Production-Inventory System with Carbon Tax," Advances in Operations Research, Hindawi, vol. 2017, pages 1-12, December.
    7. Simonov Kusi-Sarpong & Himanshu Gupta & Joseph Sarkis, 2019. "A supply chain sustainability innovation framework and evaluation methodology," International Journal of Production Research, Taylor & Francis Journals, vol. 57(7), pages 1990-2008, April.
    8. Chen, Zhixiang & Bidanda, Bopaya, 2019. "Sustainable manufacturing production-inventory decision of multiple factories with JIT logistics, component recovery and emission control," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 356-383.
    9. Zied Jemai & Y Bouchery & Asma Ghaffari & Yves Dallery, 2012. "Including sustainability criteria into inventory models," Post-Print hal-01672398, HAL.
    10. Lucio Enrico Zavanella & Beatrice Marchi & Simone Zanoni & Ivan Ferretti, 2019. "Energy considerations for the economic production quantity and the joint economic lot sizing," Journal of Business Economics, Springer, vol. 89(7), pages 845-865, September.
    11. Dominik Zimon & Jonah Tyan & Robert Sroufe, 2019. "Implementing Sustainable Supply Chain Management: Reactive, Cooperative, and Dynamic Models," Sustainability, MDPI, vol. 11(24), pages 1-22, December.
    12. Bouchery, Yann & Ghaffari, Asma & Jemai, Zied & Dallery, Yves, 2012. "Including sustainability criteria into inventory models," European Journal of Operational Research, Elsevier, vol. 222(2), pages 229-240.
    13. Iqra Asghar & Biswajit Sarkar & Sung-jun Kim, 2019. "Economic Analysis of an Integrated Production–Inventory System under Stochastic Production Capacity and Energy Consumption," Energies, MDPI, vol. 12(16), pages 1-27, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gudivada Durga Bhavani & Ieva Meidute-Kavaliauskiene & Ghanshaym S. Mahapatra & Renata Činčikaitė, 2022. "Pythagorean Fuzzy Storage Capacity with Controllable Carbon Emission Incorporating Green Technology Investment on a Two-Depository System," Energies, MDPI, vol. 15(23), pages 1-34, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Suchitra Pattnaik & Mitali Madhusmita Nayak & Stefano Abbate & Piera Centobelli, 2021. "Recent Trends in Sustainable Inventory Models: A Literature Review," Sustainability, MDPI, vol. 13(21), pages 1-20, October.
    2. Tapan Kumar Datta & Prasanta Nath & Karabi Dutta Choudhury, 2020. "A hybrid carbon policy inventory model with emission source-based green investments," OPSEARCH, Springer;Operational Research Society of India, vol. 57(1), pages 202-220, March.
    3. Vahid Reza Soleymanfar & Ahmad Makui & Ata Allah Taleizadeh & Reza Tavakkoli-Moghaddam, 2022. "Sustainable EOQ and EPQ models for a two-echelon multi-product supply chain with return policy," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5317-5343, April.
    4. Battini, Daria & Glock, Christoph H. & Grosse, Eric H. & Persona, Alessandro & Sgarbossa, Fabio, 2017. "Reprint of “Ergo-lot-sizing: An approach to integrate ergonomic and economic objectives in manual materials handling”," International Journal of Production Economics, Elsevier, vol. 194(C), pages 32-42.
    5. Jin-Kyung Kwak, 2021. "An Order-Up-to Inventory Model with Sustainability Consideration," Sustainability, MDPI, vol. 13(23), pages 1-8, December.
    6. Andriolo, Alessandro & Battini, Daria & Persona, Alessandro & Sgarbossa, Fabio, 2015. "Haulage sharing approach to achieve sustainability in material purchasing: New method and numerical applications," International Journal of Production Economics, Elsevier, vol. 164(C), pages 308-318.
    7. Gila E. Fruchter & Hussein Naseraldin, 2021. "Coordinating Carbon Emissions via Production Quantities: A Differential Game Approach," Games, MDPI, vol. 12(1), pages 1-16, February.
    8. Andriolo, Alessandro & Battini, Daria & Grubbström, Robert W. & Persona, Alessandro & Sgarbossa, Fabio, 2014. "A century of evolution from Harris׳s basic lot size model: Survey and research agenda," International Journal of Production Economics, Elsevier, vol. 155(C), pages 16-38.
    9. YuJan Shen & KuanFu Shen & ChihTe Yang, 2019. "A Production Inventory Model for Deteriorating Items with Collaborative Preservation Technology Investment Under Carbon Tax," Sustainability, MDPI, vol. 11(18), pages 1-18, September.
    10. Hovelaque, Vincent & Bironneau, Laurent, 2015. "The carbon-constrained EOQ model with carbon emission dependent demand," International Journal of Production Economics, Elsevier, vol. 164(C), pages 285-291.
    11. Y Bouchery & Asma Ghaffari & Zied Jemai & Jan C Fransoo, 2016. "Sustainable transportation and order quantity: insights from multiobjective optimization," Post-Print hal-01954465, HAL.
    12. Zhimiao Tao & Jiuping Xu, 2019. "Carbon-Regulated EOQ Models with Consumers’ Low-Carbon Awareness," Sustainability, MDPI, vol. 11(4), pages 1-16, February.
    13. Firmansyah Firmansyah & Herman Mawengkang & Abdul Mujib & Devy Mathelinea, 2022. "A Decision Model to Plan Optimally Production-Distribution of Seafood Product with Multiple Locations," Mathematics, MDPI, vol. 10(18), pages 1-13, September.
    14. Barbosa-Póvoa, Ana Paula & da Silva, Cátia & Carvalho, Ana, 2018. "Opportunities and challenges in sustainable supply chain: An operations research perspective," European Journal of Operational Research, Elsevier, vol. 268(2), pages 399-431.
    15. Daria Battini & Martina Calzavara & Ilaria Isolan & Fabio Sgarbossa & Francesco Zangaro, 2018. "Sustainability in Material Purchasing: A Multi-Objective Economic Order Quantity Model under Carbon Trading," Sustainability, MDPI, vol. 10(12), pages 1-15, November.
    16. Yugang He & Renhong Wu & Yong-Jae Choi, 2021. "International Logistics and Cross-Border E-Commerce Trade: Who Matters Whom?," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    17. Tang, Shaolong & Wang, Wenjie & Cho, Stella & Yan, Hong, 2018. "Reducing emissions in transportation and inventory management: (R, Q) Policy with considerations of carbon reduction," European Journal of Operational Research, Elsevier, vol. 269(1), pages 327-340.
    18. Davidson de Almeida Santos & Osvaldo Luiz Gonçalves Quelhas & Carlos Francisco Simões Gomes & Luis Perez Zotes & Sérgio Luiz Braga França & Guilherme Vinagre Pinto de Souza & Robson Amarante de Araújo, 2020. "Proposal for a Maturity Model in Sustainability in the Supply Chain," Sustainability, MDPI, vol. 12(22), pages 1-37, November.
    19. Khan, Mehmood & Hussain, Matloub & Saber, Hussein M., 2016. "Information sharing in a sustainable supply chain," International Journal of Production Economics, Elsevier, vol. 181(PA), pages 208-214.
    20. Yann Bouchery & Asma Ghaffari & Zied Jemai & Jan Fransoo, 2016. "Sustainable transportation and order quantity: insights from multiobjective optimization," Flexible Services and Manufacturing Journal, Springer, vol. 28(3), pages 367-396, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:14:y:2021:i:22:p:7544-:d:677108. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.