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Manufacturer’s Channel Selection Considering Carbon Emission Reduction and Remanufacturing

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Abstract

This paper develops manufacturer’s channel selection models considering carbon emission reduction and remanufacturing. The models are based on the cap-and-trade system and consumer’s preference for low-carbon product. We study the strategies of pricing and carbon emission reduction under three channel structures: pure online channel, pure offline channel and dual channel. The results show that a higher recovery rate of remanufacturing can bring a higher reduction in carbon emission level and a lower price for consumers in the three channel structures. Compared to the pure online channel and pure offline channel, the dual channel is the optimal selection for a for-profit manufacturer. However, for a retailer, the pure offline channel is more profitable than the dual channel. From the perspective of carbon emission reduction, the dual channel and the pure online channel generate the same effect; the pure offline channel makes the highest reduction in carbon emission when consumers’ acceptance for online channel is low. More managerial insights are provided in sensitivity analysis.

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Acknowledgments

The authors thank the editors and two anonymous reviewers for the valuable suggestions. This research was partially supported by NSFC grants (No. 71572058, 71520107001), and the Fundamental Research Funds for the Central Universities, SCUT (No.X2jmD2173380).

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Authors and Affiliations

  1. School of Economics and Commerce, South China University of Technology, Guangzhou, 510006, China

    Lei Yang, Guoyu Wang & Yina Chai

Authors
  1. Lei Yang
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  2. Guoyu Wang
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  3. Yina Chai
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Corresponding author

Correspondence to Lei Yang.

Additional information

This is an extended work of the paper entitled of carbon emissions in a dual-channel closed-loop supply chain with consumer’s preference, which was published in the Proceedings of 14th International Conference on Service Systems and Management and recommended for publication in this journal by the program committee of the conference.

Lei Yang received the B.S. degree from Shandong Normal University in 2001 and the Ph.D. degree from Wuhan University in 2006. He worked as a post-doctor at School of Economics and Management of Tsinghua University from 2006 to 2008. He is currently a professor in School of Economics and Commerce at South China University of Technology. His primary research interest is marketing-operations interfaces, competitive analysis, supply chain management, and risk management. He is a member of Operations Research Society of China (ORSC). His papers appeared in some journals such as Production and Operations Management, Journal of Cleaner Production, Applied Mathematical Modelling, International Journal of Production Economics, International Journal of Production Research, Journal of Industrial and Management Optimization, Asian-Pacific Journal of Operational Research, Sustainability, RAIRO-Operations Research, etc.

Guoyu Wang received the B.S. degree from Wuhan University of Technology, and is currently working toward her M. S. degree at South China University of Technology. She is focusing on the analysis of remanufacturing in the low-carbon supply chain. She recieved the best paper award in ICSSSM2017.

Yina Chai is currently a lecturer in School of Economics and Commerce at South China University of Technology. She received her Ph.D. degree from Aix-Marseille University in 2012 and also holds an M.B.A. degree from Jean Moulin Lyon 3 University, France. Her research interests lie across the areas of strategic management, supply chain management, risk management and sustainability.

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Yang, L., Wang, G. & Chai, Y. Manufacturer’s Channel Selection Considering Carbon Emission Reduction and Remanufacturing. J. Syst. Sci. Syst. Eng. 27, 497–518 (2018). https://doi.org/10.1007/s11518-018-5378-4

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  • DOI: https://doi.org/10.1007/s11518-018-5378-4

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