IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-02312264.html
   My bibliography  Save this paper

Effects of carbon emission reduction on supply chain coordination with vendor-managed deteriorating product inventory

Author

Listed:
  • Qingguo Bai

    (EM - EMLyon Business School)

  • Yeming Gong
  • Mingzhou Jin
  • Xianhao Xu

Abstract

While many supply chains use vendor-managed inventory (VMI) to handle deteriorating products, they employ special facilities (e.g., cold warehouses), which produce significant carbon emissions. This new operational practice motivates us to investigate the effects of carbon emission reduction on a supply chain with one manufacturer and two competing retailers for deteriorating products under VMI, which has not been fully studied in the existing literature. Carbon cap-and-trade regulation and investment in green technologies are used to curb carbon emissions generated by production and inventory holding in this system. To bench mark the performance of the decentralized system, an optimization model for the centralized system is formulated to show that there exists an upper bound on the profit penalty for decentralization and the carbon emissions of the centralized system may be lower than those of the decentralized system. A revenue-sharing contract is then proposed to improve the profit and emissions of the decentralized system. The results show that the supply chain can be coordinated perfectly when the demand depends on the manufacturer's green technology level and two competing retailers' selling prices. Numerical examples with sensitivity analysis are further provided to test the robustness of the supply chain's operational decisions.

Suggested Citation

  • Qingguo Bai & Yeming Gong & Mingzhou Jin & Xianhao Xu, 2019. "Effects of carbon emission reduction on supply chain coordination with vendor-managed deteriorating product inventory," Post-Print hal-02312264, HAL.
    • Handle: RePEc:hal:journl:hal-02312264
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:hal:journl:hal-02312264. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.