IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v349y2025i2d10.1007_s10479-021-03954-z.html
   My bibliography  Save this article

The impact of co-location in emissions regulation clusters on traditional and vendor managed supply chain inventory decisions

Author

Listed:
  • Nazli Turken

    (Johns Hopkins University)

  • Avinash Geda

    (University of North Carolina at Wilmington)

  • Venkanna Dora Goutham Takasi

    (University of Texas, Dallas)

Abstract

Most of the works studying the response of supply chains to environmental regulations assume all parties are subjected to the same regulations. However, quite rarely the buyers and vendors are co-located and under the same environmental regulations. In this paper, we study the inventory and production decisions of a buyer and a vendor in a multiple buyers-single vendor supply chain with multiple products under various environmental regulations. Our analysis shows that the multiple buyers-multiple products case simplifies to the single buyer-single product case in certain conditions. We find that while a cap-and-trade regulation on the buyer may increase or decrease the economic order quantity of the buyer in traditional supply chains, it always decreases the economic order quantity of the buyer in vendor managed inventories (VMI). We show that while cap-and-trade regulation induces a reduction in carbon emissions of the buyer in both VMI and traditional supply chains, it may increase the carbon emissions of the vendor. Furthermore, we find that although not as widely used as cap-and-trade regulation, carbon cap regulation may decrease the carbon emissions of the buyer and vendor beyond that of a green buyer or a green vendor. In addition, we prescribe actions that the buyer or vendor may take to offset the effects any changes in parameters have on the economic order/production quantities.

Suggested Citation

  • Nazli Turken & Avinash Geda & Venkanna Dora Goutham Takasi, 2025. "The impact of co-location in emissions regulation clusters on traditional and vendor managed supply chain inventory decisions," Annals of Operations Research, Springer, vol. 349(2), pages 931-980, June.
  • Handle: RePEc:spr:annopr:v:349:y:2025:i:2:d:10.1007_s10479-021-03954-z
    DOI: 10.1007/s10479-021-03954-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-021-03954-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10479-021-03954-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:spr:annopr:v:349:y:2025:i:2:d:10.1007_s10479-021-03954-z. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.