Research on Supply Chain Coordination of Green Production and Green Sales Investment Decisions Under Random Demand

Xinyuan Zhang ()
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Xinyuan Zhang: Beijing University of Technology, School of Economics and Management

A chapter in Proceedings of the 2024 5th International Conference on Management Science and Engineering Management (ICMSEM 2024), 2024, pp 679-686 from Springer

Abstract: Abstract The increasing consumption of resources and environmental pollution are be-coming more serious issues. To achieve the national strategic goal of “dual carbon,” enterprises throughout the supply chain are facing severe challenges. This article addresses the joint decision-making regarding inventory and carbon emission reduction efforts in green supply chains involving efforts by manufacturers and retailers. Firstly, a centralized system model for the supply chain is established, demonstrating that demand variability negatively impacts the profit of the centralized system. Secondly, concerning a decentralized system in which both manufacturers and retailers are working on carbon emission reduction, it is shown that a buyback contract with shared costs can coordinate the supply chain. The optimal expected profits of manufacturers and retailers are directly proportional to the costs they bear for carbon emission reduction. Numerical examples validate the research findings obtained.

Keywords: Green Supply Chain; Carbon Emission Reduction Efforts; Demand Variability; Supply Chain Coordination (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-570-6_67

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DOI: 10.2991/978-94-6463-570-6_67

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