Green Procurement Relationships Development under Carbon Emissions Regulations: A Bi-Level Programming Approach

Xiao-Ying Bao and Lei Zhang
Additional contact information
Xiao-Ying Bao: College of Management Science, Chengdu University of Technology, Chengdu 610059, China
Lei Zhang: College of Business Administration, Zhejiang University of Finance and Economics, Hangzhou 310018, China

IJERPH, 2018, vol. 15, issue 10, 1-14

Abstract: A multi-period Stackelberg game is adopted to study a green procurement relationship between manufacturers and suppliers in a supply chain. The manufacturers are considered as leaders, while the suppliers are modelled as followers in this Stackelberg game. Accordingly, a mixed binary linear bi-level programming model is developed to elaborate the game in consideration of carbon tax scheme. The upper level (the leader) aims at selecting a proper number of suitable suppliers to provide heterogeneous raw materials at the lowest operational cost. The objective of the lower level (the follower) is to find optimal purchasing quantities of raw materials. In addition, two lemmas are introduced to transform the mixed linear bi-level programming model into a single level linear programming model. The numerical example illustrates that: (1) the manufacturer prefers to adopt the multiple sourcing strategy due to the flexibility; (2) keeping stable supplies and large order volumes could effectively reduce carbon emissions for the suppliers and make the supply chain greener.

Keywords: supply chain management; optimization; bi-level programming; Stackelberg game; carbon emissions (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1660-4601/15/10/2183/pdf (application/pdf)
https://www.mdpi.com/1660-4601/15/10/2183/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jijerp:v:15:y:2018:i:10:p:2183-:d:173985

Access Statistics for this article

IJERPH is currently edited by Ms. Jenna Liu

More articles in IJERPH from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().