Research on multi-channel supply chain decisions considering carbon emission cost and consumer loyalty
Research on multi-channel supply chain decisions considering carbon emission cost and consumer loyalty
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.
carbon emission cost, consumer loyalty, leader manufacturer, multi-channel, supply chain decision
Chen, Haodong
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Zhang, Hengyi
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Humdan, Eias Al
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Alharithi, Mohammed
bc0427e1-27c2-47b3-bab2-759ee5f0adac
Gong, Yu
86c8d37a-744d-46ab-8b43-18447ccaf39c
11 July 2023
Chen, Haodong
096ad2a8-3294-4cae-bcae-9f71c1f89d8e
Zhang, Hengyi
0c9e59a1-8709-4f2f-81a2-da50e9d82f9b
Humdan, Eias Al
26d2c22c-4f1e-4f4b-89a6-69caa6716578
Alharithi, Mohammed
bc0427e1-27c2-47b3-bab2-759ee5f0adac
Gong, Yu
86c8d37a-744d-46ab-8b43-18447ccaf39c
Chen, Haodong, Zhang, Hengyi, Humdan, Eias Al, Alharithi, Mohammed and Gong, Yu
(2023)
Research on multi-channel supply chain decisions considering carbon emission cost and consumer loyalty.
Sustainability (Switzerland), 15 (14), [10864].
(doi:10.3390/su151410864).
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.
Text
sustainability-15-10864
- Version of Record
More information
Accepted/In Press date: 6 July 2023
e-pub ahead of print date: 11 July 2023
Published date: 11 July 2023
Additional Information:
Funding Information:
This research was funded by the National Social Science Fund of China (NO. 21BGL034) and the Prince Sattam Bin Abdulaziz University project (NO. PSAU/2023/R/1444).
Keywords:
carbon emission cost, consumer loyalty, leader manufacturer, multi-channel, supply chain decision
Identifiers
Local EPrints ID: 481235
URI: http://eprints.soton.ac.uk/id/eprint/481235
ISSN: 2071-1050
PURE UUID: 371d7bb1-dbe6-41b1-af99-94805dd1bc8d
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Date deposited: 21 Aug 2023 16:34
Last modified: 18 Mar 2024 03:40
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Contributors
Author:
Haodong Chen
Author:
Hengyi Zhang
Author:
Eias Al Humdan
Author:
Mohammed Alharithi
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