Sustainable Design Operations in the Supply Chain: Non-Pro?t Manufacturer vs. For-Pro?t Manufacturer

Qingying Li and Bin Shen
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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

Sustainability, 2016, vol. 8, issue 7, 1-19

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 nonpro?t organization (i.e., a demand quantity seeker) or a commercial ?rm (i.e., a pro?t 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 ef?ciency of the sustainable design is also discussed.

Keywords: sustainable design; supply chain; pro?t maximization; demand quantity maximization; Lagrangian method (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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