Research on Multi-Channel Supply Chain Decisions Considering Carbon Emission Cost and Consumer Loyalty

Haodong Chen, Hengyi Zhang, Eias Al Humdan, Mohammed Alharithi and Yu Gong ()
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Haodong Chen: E-Commerce and Logistics Management College, Henan University of Economics and Law, Zhengzhou 450046, China
Hengyi Zhang: Southampton Business School, University of Southampton, Southampton SO17 1BJ, UK
Eias Al Humdan: Rabdan Academy, Abu Dhabi P.O. Box 114646, United Arab Emirates
Mohammed Alharithi: Southampton Business School, University of Southampton, Southampton SO17 1BJ, UK
Yu Gong: Southampton Business School, University of Southampton, Southampton SO17 1BJ, UK

Sustainability, 2023, vol. 15, issue 14, 1-28

Abstract: Considering carbon emission cost and consumer loyalty, this paper establishes a three-level multi-channel supply chain composed of the leading manufacturer, the retailer, and the consumer and builds a multi-channel supply chain with centralized decision-making and decentralized decision-making modes, and the optimal decision-making under both decision-making modes is solved. The study found that the carbon emission reduction level of multi-channel centralized decision-making is better than that of decentralized decision-making under the same carbon emission cost, and centralized decision-making can improve the carbon emission reduction level. Manufacturers open a direct channel to help reduce carbon emissions and need to consider the cost of emission reduction in their channel decisions. Consumer loyalty also directly impacts channel decisions. Only when carbon emission costs and consumer loyalty are within a reasonable range can new direct sales channels be opened to bring in new profits. Simultaneously, the total profit of the supply chain is greater than that of decentralized decision-making, but the double marginal utility of both parties decreases with the increase in carbon emission costs.

Keywords: carbon emission cost; consumer loyalty; leader manufacturer; multi-channel; supply chain decision (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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