Work

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

Year: 2023

Type: article

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.

Source: Sustainability

DOI: 10.3390/su151410864

Authors: Haodong Chen, Hengyi Zhang, Eias Al Humdan, Mohammed Alharithi, Yu Gong

Institutions: Henan University of Economic and Law, University of Southampton, Rabdan Academy, Prince Sattam Bin Abdulaziz University

Language: English

Topic: Supply Chain and Inventory Management

Subfield: Management Science and Operations Research

Field: Decision Sciences

Domain: Social Sciences

SDGs: Climate action, Responsible consumption and production

Open Access status: gold

Estimated APC paid: $2,447