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Sustainable Design Operations in the Supply Chain: Non-Profit Manufacturer vs. For-Profit Manufacturer

Author

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  • Qingying Li

    (Glorious Sun School of Business and Management, Donghua University, Shanghai 200051, China)

  • Bin Shen

    (Glorious Sun School of Business and Management, Donghua University, Shanghai 200051, China)

Abstract

Sustainable design aims to reduce the negative impacts either on people (e.g., create healthy) or on planet (e.g., minimize waste). In other words, sustainable design is the philosophy thattendstoimprovedesignperformancebyincorporatinghealthandsafetyattributes(forpeople), and environmental attributes (for planet) into products. In this paper, we develop an analytical model to examine the sustainable design operations in a supply chain which consists of one retailer and one manufacturer. The manufacturer designs the products by investigating sustainable design efforts, such that the products can better coordinate human needs. Motivated by the real industry practice, we consider two business modes for the manufacturer: a nonprofit organization (i.e., a demand quantity seeker) or a commercial firm (i.e., a profit seeker). We obtain the optimal operational decisions in both the decentralized case and the centralized case, and we also compare the results. Managerial insights are derived, and the efficiency of the sustainable design is also discussed.

Suggested Citation

  • Qingying Li & Bin Shen, 2016. "Sustainable Design Operations in the Supply Chain: Non-Profit Manufacturer vs. For-Profit Manufacturer," Sustainability, MDPI, vol. 8(7), pages 1-19, July.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:7:p:639-:d:73423
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    References listed on IDEAS

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    9. Ciwei Dong & Bin Shen & Pui-Sze Chow & Liu Yang & Chi To Ng, 2016. "Sustainability investment under cap-and-trade regulation," Annals of Operations Research, Springer, vol. 240(2), pages 509-531, May.
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    Cited by:

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    2. Biao Li & Kekun Wu, 2017. "Environmental Management System Adoption and the Operational Performance of Firm in the Textile and Apparel Industry of China," Sustainability, MDPI, vol. 9(6), pages 1-11, June.
    3. Ciwei Dong & Qingying Li & Bin Shen & Xun Tong, 2019. "Sustainability in Supply Chains with Behavioral Concerns," Sustainability, MDPI, vol. 11(15), pages 1-7, July.
    4. Bisheng Du & Qing Liu & Guiping Li, 2017. "Coordinating Leader-Follower Supply Chain with Sustainable Green Technology Innovation on Their Fairness Concerns," IJERPH, MDPI, vol. 14(11), pages 1-23, November.
    5. Xiutian Shi & Yuan Qian & Ciwei Dong, 2017. "Economic and Environmental Performance of Fashion Supply Chain: The Joint Effect of Power Structure and Sustainable Investment," Sustainability, MDPI, vol. 9(6), pages 1-22, June.
    6. Luo Wang & Bin Shen, 2017. "A Product Line Analysis for Eco-Designed Fashion Products: Evidence from an Outdoor Sportswear Brand," Sustainability, MDPI, vol. 9(7), pages 1-12, July.
    7. Zhaoxia Guo & Haitao Liu & Dongqing Zhang & Jing Yang, 2017. "Green Supplier Evaluation and Selection in Apparel Manufacturing Using a Fuzzy Multi-Criteria Decision-Making Approach," Sustainability, MDPI, vol. 9(4), pages 1-13, April.
    8. Li, Qingying, 2018. "The optimal multi-period modular design with fairness concerns," International Journal of Production Economics, Elsevier, vol. 206(C), pages 233-249.
    9. Cheng, Fei & Chen, Tong & Chen, Qiao, 2022. "Cost-reducing strategy or emission-reducing strategy? The choice of low-carbon decisions under price threshold subsidy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).
    10. Bin Shen & Qingying Li & Ciwei Dong & Patsy Perry, 2017. "Sustainability Issues in Textile and Apparel Supply Chains," Sustainability, MDPI, vol. 9(9), pages 1-6, September.
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