Carbon Emission Reduction and Pricing Strategies of Supply Chain under Various Demand Forecasting Scenarios

This study incorporates consumer’s low carbon awareness (CLA) and demand forecasting into supply chains that adopt the cap-and-trade system. Three demand forecasting scenarios are discussed, namely, information sharing, full information sharing, and retailer-only forecasting. Strategies for pricing and reduction of equilibrium of carbon emission are derived. We also compare the decisions and profits in the three cases and present numerical analysis.

[1]  V. Hovelaque,et al.  The carbon-constrained EOQ model with carbon emission dependent demand , 2015 .

[2]  Qinpeng Wang,et al.  Contracting emission reduction for supply chains considering market low-carbon preference , 2016 .

[3]  E. Plambeck Reducing greenhouse gas emissions through operations and supply chain management , 2012 .

[4]  D. Konur,et al.  Joint decisions on inventory replenishment and emission reduction investment under different emission regulations , 2014 .

[5]  Xiaohang Yue,et al.  Optimal Contract Design for Mixed Channels Under Information Asymmetry , 2008 .

[6]  Joseph Sarkis,et al.  Greening transportation fleets: Insights from a two-stage game theoretic model , 2011 .

[7]  P. He,et al.  Joint production and pricing decisions for multiple products with cap-and-trade and carbon tax regulations , 2016 .

[8]  R. L. Winkler Combining Probability Distributions from Dependent Information Sources , 1981 .

[9]  J. Raju,et al.  Market Information and Firm Performance , 2000 .

[10]  Elgar Fleisch,et al.  Using Sensor Information to Reduce the Carbon Footprint of Perishable Goods , 2009, IEEE Pervasive Computing.

[11]  B. K. Mishra,et al.  Demand Forecast Sharing in Supply Chains , 2009 .

[12]  Chih-te Yang,et al.  Sustainable trade credit and replenishment decisions with credit-linked demand under carbon emission constraints , 2015, Eur. J. Oper. Res..

[13]  Xiaohang Yue,et al.  Role of forecast effort on supply chain profitability under various information sharing scenarios , 2011 .

[14]  Haim Mendelson,et al.  Information Goods vs. Industrial Goods: Cost Structure and Competition , 2011, Manag. Sci..

[15]  A. Ramudhin,et al.  Design of sustainable supply chains under the emission trading scheme , 2012 .

[16]  M. Jaber,et al.  Sustainability strategies in an EPQ model with price- and quality-sensitive demand , 2012 .

[17]  A. Hadj-Alouane,et al.  Optimization of manufacturing systems under environmental considerations for a greenness-dependent demand , 2014 .

[18]  Volodymyr Babich,et al.  Contracting with Asymmetric Demand Information in Supply Chains , 2008 .

[19]  Mingming Leng,et al.  Analysis of the Single-Period Problem under Carbon Emissions Policies , 2012 .

[20]  Metin Turkay,et al.  EOQ Revisited with Sustainability Considerations , 2013 .

[21]  D. Konur,et al.  Integrated inventory control and transportation decisions under carbon emissions regulations: LTL vs. TL carriers , 2014 .

[22]  Mark S. Daskin,et al.  Carbon Footprint and the Management of Supply Chains: Insights From Simple Models , 2013, IEEE Transactions on Automation Science and Engineering.

[23]  Zhi Pei,et al.  Incentive-Compatible Information Sharing by Dual-Channel Retailers , 2012, Int. J. Electron. Commer..

[24]  J. Zhang,et al.  Game-theoretic analysis for an emission-dependent supply chain in a ‘cap-and-trade’ system , 2011, Annals of Operations Research.

[25]  Sanjeev Swami,et al.  Channel coordination in green supply chain management , 2013, J. Oper. Res. Soc..

[26]  T. Cheng,et al.  Managing carbon footprints in inventory management , 2011 .

[27]  Zugang Liu,et al.  Consumer environmental awareness and competition in two-stage supply chains , 2012, Eur. J. Oper. Res..

[28]  Samar K. Mukhopadhyay,et al.  A Stackelberg model of pricing of complementary goods under information asymmetry , 2011 .

[29]  Samar K. Mukhopadhyay,et al.  A Bertrand model of pricing of complementary goods under information asymmetry , 2006 .

[30]  Janat Shah,et al.  A comparative analysis of greening policies across supply chain structures , 2012 .