• Previous Article
    Dynamic virtual cellular reconfiguration for capacity planning of market-oriented production systems
  • JIMO Home
  • This Issue
  • Next Article
    The optimization of a multi-period multi-product closed-loop supply chain network with cross-docking delivery strategy
doi: 10.3934/jimo.2022002
Online First

Online First articles are published articles within a journal that have not yet been assigned to a formal issue. This means they do not yet have a volume number, issue number, or page numbers assigned to them, however, they can still be found and cited using their DOI (Digital Object Identifier). Online First publication benefits the research community by making new scientific discoveries known as quickly as possible.

Readers can access Online First articles via the “Online First” tab for the selected journal.

Optimal financing strategy in a closed-loop supply chain for construction machinery remanufacturing with emissions abatement

1. 

School of Economics and management, Southeast University, Nanjing, China

2. 

College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing, China

*Corresponding author: Weida Chen

Received  April 2021 Revised  August 2021 Early access January 2022

Fund Project: This work was supported by the National Natural Science Foundation of China grant 71971058, and the Postgraduate Research & Practice Innovation Program of Jiangsu Province grant KYCX21_0170

Motivated by the remanufacturing practice of construction machinery, this paper examines the impacts of different cooperation financing and carbon emission reduction (CER) strategies on the operational decisions in a closed-loop supply chain (CLSC) where the original equipment manufacturer (OEM) produces only new products and the capital-constraint retailer produces remanufactured products and sells both new and remanufactured products to consumers. Based on the cooperation level between the OEM and the retailer, four different financing strategies, including the non-cooperation financing (NCF), the supply chain carbon financing (SCCF), the partial cooperation with delay-in-payment financing (PCD), and the full-cooperation financing (FC), are explored. Meanwhile, we extend the proposed models by considering the CER strategy implemented by the OEM, and then investigate its impact on the optimal operational and financing decisions of the retailer. The results show that: i) Under different financing strategies, the CER strategy has no impact on the retail price of remanufactured products, but can help increase the market share of new products and strengthen the market value effect for the OEM. ii) Compared with the scenario without CER, the SCCF strategy can not only ease funding pressure than the NCF strategy for the retailer but also increase the CLSC profit under the CER strategy. iii) No matter which financing strategy is adopted, the CER strategy always has a squeezing effect on the market size of remanufactured products, i.e., the cannibalization effect. iv) The CER strategy is not conducive to the development of the remanufacturing industry, but can improve the environmental performance in terms of reducing emissions and increasing the market sales for new products.

Citation: Shuaishuai Fu, Weida Chen, Junfei Ding, Dandan Wang. Optimal financing strategy in a closed-loop supply chain for construction machinery remanufacturing with emissions abatement. Journal of Industrial and Management Optimization, doi: 10.3934/jimo.2022002
References:
[1]

S. M. AnB. LiD. P. Song and X. Chen, Green credit financing versus trade credit financing in a supply chain with carbon emission limits, Eur. J. Oper. Res., 292 (2021), 125-142.  doi: 10.1016/j.ejor.2020.10.025.

[2]

E. B. CaoL. X. Du and J. H. Ruan, Financing preferences and performance for an emission-dependent supply chain: Supplier vs. bank, Int. J. Prod. Econ., 208 (2019), 383-399.  doi: 10.1016/j.ijpe.2018.08.001.

[3]

B. ChoiL. Luo and P. Shrestha, The value relevance of carbon emissions information from Australian-listed companies, Aust. J. Manag., 46 (2021), 3-23.  doi: 10.1177/0312896220918642.

[4]

J. F. Ding, W. D. Chen and W. B. Wang, Production and carbon emission reduction decisions for remanufacturing firms under carbon tax and take-back legislation, Comput. Ind. Eng., early access, 2020. doi: 10.1016/j.cie.2020.106419.

[5]

J. F. Ding, W. D. Chen and S. S. Fu, Optimal policy for remanufacturing firms with carbon options under service requirements, J. Syst. Sci. Syst. Eng., early access, 2021. doi: 10.1007/s11518-021-5512-6.

[6]

Y. B. DuY. QianC. B. Li and L. Liao, Life cycle oriented low-carbon operation models of machinery manufacturing industry, J. Clean. Prod., 91 (2015), 145-157.  doi: 10.1016/j.jclepro.2014.12.028.

[7]

L. Fang and S. Xu, Financing equilibrium in a green supply chain with capital constraint, Compu. Ind. Eng., early access, 2020. doi: 10.1016/j.cie.2020.106390.

[8]

H. FuM. W. Liu and B. Chen, Supplier's investment in manufacturer's quality improvement with equity holding, J. Ind. Manag. Optim., 17 (2021), 649-668.  doi: 10.3934/jimo.2019127.

[9]

Q. D. HeN. M. WangZ. YangZ. W. He and B. Jiang, Competitive collection under channel inconvenience in closed-loop supply chain, Eur. J. Oper. Res., 275 (2019), 155-166.  doi: 10.1016/j.ejor.2018.11.034.

[10]

M. HuangP. Yi and T. L. Shi, Triple recycling channel strategies for remanufacturing of construction machinery in a retailer-dominated closed-loop supply chain, Sustainability, 9 (2017), 2167-2186.  doi: 10.3390/su9122167.

[11]

J. Huang, W. S. Yang, Y. L. Tu, Financing mode decision in a supply chain with financial constraint, Int. J. Prod. Econ., early access, 2020. doi: 10.1016/j.ijpe.2019.07.014.

[12]

X. P. HongK. GovindanL. Xu and P. Du, Quantity and collection decisions in a closed-loop supply chain with technology licensing, Eur. J. Oper. Res., 256 (2017), 820-829.  doi: 10.1016/j.ejor.2016.06.051.

[13]

M. HardiyansahA. T. Agustini and I. Purnamawati, The effect of carbon emission disclosure on firm value: Environmental performance and industrial type, J. Asian Financ. Econ. Bus., 8 (2021), 123-133. 

[14]

A. Korchi and D. Millet, Designing a sustainable reverse logistics channel: The 18 generic structures framework, J. Clean. Prod., 19 (2011), 588-597.  doi: 10.1016/j.jclepro.2010.11.013.

[15]

G. LiH. M. Wu and S. Xiao, Financing strategies for a capital-constrained manufacturer in a dual-channel supply chain, Int. T. Oper. Res., 27 (2020), 2317-2339.  doi: 10.1111/itor.12653.

[16]

C. L. LuM. ZhaoI. Khan and P. Uthansakul, Financing Strategy of Low-Carbon Supply Chain with Capital Constraint under Cap-and-Trade Regulation, CMC-Comput. Mater. Con., 66 (2021), 437-455.  doi: 10.32604/cmc.2020.012557.

[17]

H. H. LeeJ. E. Zhou and J. Q. Wang, Trade credit financing under competition and its impact on firm performance in supply chains, Manufac. Service Oper. Manag., 20 (2018), 36-52.  doi: 10.1287/msom.2017.0640.

[18]

T. Maiti and B.C. Giri, Two-way product recovery in a closed-loop supply chain with variable markup under price and quality dependent demand, Int. J. Prod. Econ., 183 (2017), 259-272.  doi: 10.1016/j.ijpe.2016.09.025.

[19]

L. M. Qi, L. Liu, L. W. Jiang, Z. C. Wang and W. L. Zhao, Optimal Operation Strategies under a Carbon Cap-and-Trade Mechanism: A Capital-Constrained Supply Chain Incorporating Risk Aversion, Math. Probl. Eng., early access, 2020. doi: 10.1155/2020/9515710.

[20]

R. SubramanianS. Gupta and B. Talbot, Compliance strategies under permits for emissions, Prod. Oper. Manag., 16 (2007), 763-779.  doi: 10.1111/j.1937-5956.2007.tb00294.x.

[21]

L. F. SunL. M. QiuS. Y. Zhang and X. R. Wu, Carbon emission hierarchical model of complex equipment for low-carbon design, Comput. Integr. Manuf., 18 (2012), 2381-2390. 

[22]

J. Z. Shi, Q. Du, F. Lin, B. Bai, Y. K. Richard and K. L. Kin, Coordinating the supply chain finance system with buyback contract: A capital-constrained newsvendor problem, Compu. Ind. Eng., early access, 2020. doi: 10.1016/j.cie.2020.106587.

[23]

C. S. TangS. A. Yang and J. Wu, Sourcing from suppliers with financial constraints and performance risk, Manufac. Service Oper. Manag., 20 (2018), 70-84. 

[24]

J. TangB. Y. LiK. W. LiZ. Liu and J. Huang, Pricing and warranty decisions in a two-period closed-loop supply chain, Int. J. Prod. Res., 58 (2020), 1688-1704.  doi: 10.1080/00207543.2019.1683246.

[25]

D. D. WuL. P. Yang and D. L. Olson, Green supply chain management under capital constraint, Int. J. Prod. Econ., 215 (2019), 3-10. 

[26]

Y. C. WangT. LuC. H. GaoC. H. Zhang and C. Chen, Research on remanufacturing closed-loop logistics network design under low-carbon restriction, Appl. Mech. Mater., 159 (2012), 224-234.  doi: 10.4028/www.scientific.net/AMM.159.224.

[27]

Q. P. WangD. Z. Zhao and L. F. He, Contracting emission reduction for supply chains considering market low-carbon preference, J. Clean. Prod., 120 (2016), 72-84.  doi: 10.1016/j.jclepro.2015.11.049.

[28]

Y. J. WangW. D. Chen and B. Y. liu, Manufacturing/remanufacturing decisions for a capital-constrained manufacturer considering carbon emission cap and trade, J. Clean. Prod., 140 (2017), 1118-1128.  doi: 10.1016/j.jclepro.2016.10.058.

[29]

Y. J. WangW. D. Chen and B. Y. liu, Effects of emissions constraint on manufacturing/remanufacturing decisions considering capital constraint and financing, J. Clean. Prod., 8 (2017), 455-464.  doi: 10.1016/j.apr.2016.11.006.

[30]

Y. Y. Wang and Y. Y. Zhang, Remanufacturer's production strategy with capital constraint and differentiated demand, J. Intell. Manuf., 28 (2017), 869-882.  doi: 10.1007/s10845-014-1006-4.

[31]

L. S. XiaoW. L. LiuQ. H. GuoL. J. GaoG. Q. Zhang and X. J. Chen, Comparative life cycle assessment of manufactured and remanufactured loading machines in China, Resour. Conserv. Recycl., 131 (2018), 225-234.  doi: 10.1016/j.resconrec.2017.12.021.

[32]

N. YanY. LiuX. Xu and X. He, Strategic dual-channel pricing games with e-retailer finance, Eur. J. Oper. Res., 283 (2020), 138-151.  doi: 10.1016/j.ejor.2019.10.046.

[33]

A. Yenipazarli, Managing new and remanufactured products to mitigate environmental damage under emissions regulation, Eur. J. Oper. Res., 249 (2016), 117-130.  doi: 10.1016/j.ejor.2015.08.020.

[34]

P. X. YiM. HuangL. J. Guo and T. L. Shi, A retailer oriented closed-loop supply chain network design for end of life construction machinery remanufacturing, J. Clean. Prod., 124 (2016), 191-203.  doi: 10.1016/j.jclepro.2016.02.070.

[35]

P. X. YiM. HuangL. J. Guo and T. L. Shi, Dual recycling channel decision in retailer oriented closed-loop supply chain for construction machinery remanufacturing, J. Clean. Prod., 137 (2016), 1393-1405.  doi: 10.1016/j.jclepro.2016.07.104.

[36]

H. X. Yang and W. B. Chen, Retailer-driven carbon emission abatement with consumer environmental awareness and carbon tax: Revenue-sharing versus cost-sharing, Manage. Sci., 78 (2018), 179-191.  doi: 10.1016/j.omega.2017.06.012.

[37]

L. YangY. F. Chen and J. N. Ji, Cooperation modes of operations and financing in a low-carbon supply chain, Sustainability, 10 (2018), 1-25.  doi: 10.3390/su10030821.

[38]

L. YangY. J. Hu and L. J. Huang, Collecting mode selection in a remanufacturing supply chain under cap-and-trade regulation, Eur. J. Oper. Res., 287 (2020), 480-496.  doi: 10.1016/j.ejor.2020.04.006.

[39]

Y. W. ZhouZ. L. Wen and X. L. Wu, A single-period inventory and payment model with partial trade credit, Comput. Ind. Eng., 90 (2015), 132-145.  doi: 10.1016/j.cie.2015.08.003.

[40]

X. P. ZhenD. ShiY. J. Li and C. Zhang, Manufacturer's financing strategy in a dual-channel supply chain: Third-party platform, bank, and retailer credit financing, Int. T. Oper. Res., 133 (2020), 1-22.  doi: 10.1111/itor.12653.

[41]

X. ZhengK. GovindanQ. Z. Deng and L. P. Feng, Effects of design for the environment on firms' production and remanufacturing strategies, Int. J. Prod. Econ., 213 (2019), 217-228.  doi: 10.1016/j.ijpe.2019.03.019.

[42]

C. ZhangY. X. Wang and P. Ma, Optimal channel strategies in a supply chain under green manufacturer financial distress with advance payment discount, Int. T. Oper. Res., 28 (2021), 1347-1370.  doi: 10.1111/itor.12841.

[43]

X. L. Zhang, G. Y. Xiu, F. Shahzad, and C. Q. Duan, The Impact of Equity Financing on the Performance of Capital-Constrained Supply Chain under Consumers' Low-Carbon Preference, Int. J. Environ. Res., early access, 2021. doi: 10.3390/ijerph18052329.

[44]

Y. M. Zhang, W. D. Chen, and Q. R. Li, Third-party remanufacturing mode selection for a capital-constrained closed-loop supply chain under financing portfolio, Comput. Ind. Eng., early access, 2021. doi: 10.1016/j.cie.2021.107315.

[45]

Z. C. ZhangH. Y. Xu and K. B. Chen, Operational decisions and financing strategies in a capital-constrained closed-loop supply chain, Int. J. Prod. Res., 59 (2021), 4690-4710. 

show all references

References:
[1]

S. M. AnB. LiD. P. Song and X. Chen, Green credit financing versus trade credit financing in a supply chain with carbon emission limits, Eur. J. Oper. Res., 292 (2021), 125-142.  doi: 10.1016/j.ejor.2020.10.025.

[2]

E. B. CaoL. X. Du and J. H. Ruan, Financing preferences and performance for an emission-dependent supply chain: Supplier vs. bank, Int. J. Prod. Econ., 208 (2019), 383-399.  doi: 10.1016/j.ijpe.2018.08.001.

[3]

B. ChoiL. Luo and P. Shrestha, The value relevance of carbon emissions information from Australian-listed companies, Aust. J. Manag., 46 (2021), 3-23.  doi: 10.1177/0312896220918642.

[4]

J. F. Ding, W. D. Chen and W. B. Wang, Production and carbon emission reduction decisions for remanufacturing firms under carbon tax and take-back legislation, Comput. Ind. Eng., early access, 2020. doi: 10.1016/j.cie.2020.106419.

[5]

J. F. Ding, W. D. Chen and S. S. Fu, Optimal policy for remanufacturing firms with carbon options under service requirements, J. Syst. Sci. Syst. Eng., early access, 2021. doi: 10.1007/s11518-021-5512-6.

[6]

Y. B. DuY. QianC. B. Li and L. Liao, Life cycle oriented low-carbon operation models of machinery manufacturing industry, J. Clean. Prod., 91 (2015), 145-157.  doi: 10.1016/j.jclepro.2014.12.028.

[7]

L. Fang and S. Xu, Financing equilibrium in a green supply chain with capital constraint, Compu. Ind. Eng., early access, 2020. doi: 10.1016/j.cie.2020.106390.

[8]

H. FuM. W. Liu and B. Chen, Supplier's investment in manufacturer's quality improvement with equity holding, J. Ind. Manag. Optim., 17 (2021), 649-668.  doi: 10.3934/jimo.2019127.

[9]

Q. D. HeN. M. WangZ. YangZ. W. He and B. Jiang, Competitive collection under channel inconvenience in closed-loop supply chain, Eur. J. Oper. Res., 275 (2019), 155-166.  doi: 10.1016/j.ejor.2018.11.034.

[10]

M. HuangP. Yi and T. L. Shi, Triple recycling channel strategies for remanufacturing of construction machinery in a retailer-dominated closed-loop supply chain, Sustainability, 9 (2017), 2167-2186.  doi: 10.3390/su9122167.

[11]

J. Huang, W. S. Yang, Y. L. Tu, Financing mode decision in a supply chain with financial constraint, Int. J. Prod. Econ., early access, 2020. doi: 10.1016/j.ijpe.2019.07.014.

[12]

X. P. HongK. GovindanL. Xu and P. Du, Quantity and collection decisions in a closed-loop supply chain with technology licensing, Eur. J. Oper. Res., 256 (2017), 820-829.  doi: 10.1016/j.ejor.2016.06.051.

[13]

M. HardiyansahA. T. Agustini and I. Purnamawati, The effect of carbon emission disclosure on firm value: Environmental performance and industrial type, J. Asian Financ. Econ. Bus., 8 (2021), 123-133. 

[14]

A. Korchi and D. Millet, Designing a sustainable reverse logistics channel: The 18 generic structures framework, J. Clean. Prod., 19 (2011), 588-597.  doi: 10.1016/j.jclepro.2010.11.013.

[15]

G. LiH. M. Wu and S. Xiao, Financing strategies for a capital-constrained manufacturer in a dual-channel supply chain, Int. T. Oper. Res., 27 (2020), 2317-2339.  doi: 10.1111/itor.12653.

[16]

C. L. LuM. ZhaoI. Khan and P. Uthansakul, Financing Strategy of Low-Carbon Supply Chain with Capital Constraint under Cap-and-Trade Regulation, CMC-Comput. Mater. Con., 66 (2021), 437-455.  doi: 10.32604/cmc.2020.012557.

[17]

H. H. LeeJ. E. Zhou and J. Q. Wang, Trade credit financing under competition and its impact on firm performance in supply chains, Manufac. Service Oper. Manag., 20 (2018), 36-52.  doi: 10.1287/msom.2017.0640.

[18]

T. Maiti and B.C. Giri, Two-way product recovery in a closed-loop supply chain with variable markup under price and quality dependent demand, Int. J. Prod. Econ., 183 (2017), 259-272.  doi: 10.1016/j.ijpe.2016.09.025.

[19]

L. M. Qi, L. Liu, L. W. Jiang, Z. C. Wang and W. L. Zhao, Optimal Operation Strategies under a Carbon Cap-and-Trade Mechanism: A Capital-Constrained Supply Chain Incorporating Risk Aversion, Math. Probl. Eng., early access, 2020. doi: 10.1155/2020/9515710.

[20]

R. SubramanianS. Gupta and B. Talbot, Compliance strategies under permits for emissions, Prod. Oper. Manag., 16 (2007), 763-779.  doi: 10.1111/j.1937-5956.2007.tb00294.x.

[21]

L. F. SunL. M. QiuS. Y. Zhang and X. R. Wu, Carbon emission hierarchical model of complex equipment for low-carbon design, Comput. Integr. Manuf., 18 (2012), 2381-2390. 

[22]

J. Z. Shi, Q. Du, F. Lin, B. Bai, Y. K. Richard and K. L. Kin, Coordinating the supply chain finance system with buyback contract: A capital-constrained newsvendor problem, Compu. Ind. Eng., early access, 2020. doi: 10.1016/j.cie.2020.106587.

[23]

C. S. TangS. A. Yang and J. Wu, Sourcing from suppliers with financial constraints and performance risk, Manufac. Service Oper. Manag., 20 (2018), 70-84. 

[24]

J. TangB. Y. LiK. W. LiZ. Liu and J. Huang, Pricing and warranty decisions in a two-period closed-loop supply chain, Int. J. Prod. Res., 58 (2020), 1688-1704.  doi: 10.1080/00207543.2019.1683246.

[25]

D. D. WuL. P. Yang and D. L. Olson, Green supply chain management under capital constraint, Int. J. Prod. Econ., 215 (2019), 3-10. 

[26]

Y. C. WangT. LuC. H. GaoC. H. Zhang and C. Chen, Research on remanufacturing closed-loop logistics network design under low-carbon restriction, Appl. Mech. Mater., 159 (2012), 224-234.  doi: 10.4028/www.scientific.net/AMM.159.224.

[27]

Q. P. WangD. Z. Zhao and L. F. He, Contracting emission reduction for supply chains considering market low-carbon preference, J. Clean. Prod., 120 (2016), 72-84.  doi: 10.1016/j.jclepro.2015.11.049.

[28]

Y. J. WangW. D. Chen and B. Y. liu, Manufacturing/remanufacturing decisions for a capital-constrained manufacturer considering carbon emission cap and trade, J. Clean. Prod., 140 (2017), 1118-1128.  doi: 10.1016/j.jclepro.2016.10.058.

[29]

Y. J. WangW. D. Chen and B. Y. liu, Effects of emissions constraint on manufacturing/remanufacturing decisions considering capital constraint and financing, J. Clean. Prod., 8 (2017), 455-464.  doi: 10.1016/j.apr.2016.11.006.

[30]

Y. Y. Wang and Y. Y. Zhang, Remanufacturer's production strategy with capital constraint and differentiated demand, J. Intell. Manuf., 28 (2017), 869-882.  doi: 10.1007/s10845-014-1006-4.

[31]

L. S. XiaoW. L. LiuQ. H. GuoL. J. GaoG. Q. Zhang and X. J. Chen, Comparative life cycle assessment of manufactured and remanufactured loading machines in China, Resour. Conserv. Recycl., 131 (2018), 225-234.  doi: 10.1016/j.resconrec.2017.12.021.

[32]

N. YanY. LiuX. Xu and X. He, Strategic dual-channel pricing games with e-retailer finance, Eur. J. Oper. Res., 283 (2020), 138-151.  doi: 10.1016/j.ejor.2019.10.046.

[33]

A. Yenipazarli, Managing new and remanufactured products to mitigate environmental damage under emissions regulation, Eur. J. Oper. Res., 249 (2016), 117-130.  doi: 10.1016/j.ejor.2015.08.020.

[34]

P. X. YiM. HuangL. J. Guo and T. L. Shi, A retailer oriented closed-loop supply chain network design for end of life construction machinery remanufacturing, J. Clean. Prod., 124 (2016), 191-203.  doi: 10.1016/j.jclepro.2016.02.070.

[35]

P. X. YiM. HuangL. J. Guo and T. L. Shi, Dual recycling channel decision in retailer oriented closed-loop supply chain for construction machinery remanufacturing, J. Clean. Prod., 137 (2016), 1393-1405.  doi: 10.1016/j.jclepro.2016.07.104.

[36]

H. X. Yang and W. B. Chen, Retailer-driven carbon emission abatement with consumer environmental awareness and carbon tax: Revenue-sharing versus cost-sharing, Manage. Sci., 78 (2018), 179-191.  doi: 10.1016/j.omega.2017.06.012.

[37]

L. YangY. F. Chen and J. N. Ji, Cooperation modes of operations and financing in a low-carbon supply chain, Sustainability, 10 (2018), 1-25.  doi: 10.3390/su10030821.

[38]

L. YangY. J. Hu and L. J. Huang, Collecting mode selection in a remanufacturing supply chain under cap-and-trade regulation, Eur. J. Oper. Res., 287 (2020), 480-496.  doi: 10.1016/j.ejor.2020.04.006.

[39]

Y. W. ZhouZ. L. Wen and X. L. Wu, A single-period inventory and payment model with partial trade credit, Comput. Ind. Eng., 90 (2015), 132-145.  doi: 10.1016/j.cie.2015.08.003.

[40]

X. P. ZhenD. ShiY. J. Li and C. Zhang, Manufacturer's financing strategy in a dual-channel supply chain: Third-party platform, bank, and retailer credit financing, Int. T. Oper. Res., 133 (2020), 1-22.  doi: 10.1111/itor.12653.

[41]

X. ZhengK. GovindanQ. Z. Deng and L. P. Feng, Effects of design for the environment on firms' production and remanufacturing strategies, Int. J. Prod. Econ., 213 (2019), 217-228.  doi: 10.1016/j.ijpe.2019.03.019.

[42]

C. ZhangY. X. Wang and P. Ma, Optimal channel strategies in a supply chain under green manufacturer financial distress with advance payment discount, Int. T. Oper. Res., 28 (2021), 1347-1370.  doi: 10.1111/itor.12841.

[43]

X. L. Zhang, G. Y. Xiu, F. Shahzad, and C. Q. Duan, The Impact of Equity Financing on the Performance of Capital-Constrained Supply Chain under Consumers' Low-Carbon Preference, Int. J. Environ. Res., early access, 2021. doi: 10.3390/ijerph18052329.

[44]

Y. M. Zhang, W. D. Chen, and Q. R. Li, Third-party remanufacturing mode selection for a capital-constrained closed-loop supply chain under financing portfolio, Comput. Ind. Eng., early access, 2021. doi: 10.1016/j.cie.2021.107315.

[45]

Z. C. ZhangH. Y. Xu and K. B. Chen, Operational decisions and financing strategies in a capital-constrained closed-loop supply chain, Int. J. Prod. Res., 59 (2021), 4690-4710. 

Figure 1.  Non-cooperation with financing
Figure 2.  Supply chain carbon financing (SCCF)
Figure 3.  Partial-cooperation with delay-in-payment financing (PCD)
Figure 4.  Full-cooperation financing (FC)
Figure 5.  The effect of carbon reduction cost coefficient on the emission reduction rate
Figure 6.  The effect of carbon reduction cost coefficient on the retail price of new product
Figure 7.  The effect of interest rate on loan amount
Figure 8.  The effect of interest rate on CER rate
Figure 9.  The profits of CLSC under different financing strategies
Table 1.  The difference between this paper and prior studies
Paper CER CLSC Manufacturing/Remanufacturing Financing Strategy
NCF SCCF PCD FC
Sun et.al(2012)
Yi et al. (2016b)
Wang et al. (2017b)
Wang et al. (2017)
Tang et al. (2018)
Cao et al. (2019)
An et al.(2020)
Yang et al.(2018)
This paper
Paper CER CLSC Manufacturing/Remanufacturing Financing Strategy
NCF SCCF PCD FC
Sun et.al(2012)
Yi et al. (2016b)
Wang et al. (2017b)
Wang et al. (2017)
Tang et al. (2018)
Cao et al. (2019)
An et al.(2020)
Yang et al.(2018)
This paper
Table 2.  Notations for parameters and variables
Decision variables
$ w $ Wholesale price of new product
$ P_i $ Retail price of $ i $, where $ i=m,r $ indicates new and remanufactured products, respectively
$ \Gamma_m $ The carbon emission reduction rate
Parameters
$ c_i $ Unit production cost of $ i $
$ Q_i $ Production quantities of $ i $
$ \delta $ Discount factor of consumer value for remanufactured products
$ P_c $ Carbon price
$ r $ Bank loan interest rate
$ L_j $ Loan amount of $ j $, where $ j=1,2 $ indicates without CER, $ j=3,4 $ indicates with CER
$ e_i $ Initial carbon emission of product $ i $
$ \beta $ The percentage of carbon emissions between new product and remanufactured products
$ G_i $ Carbon quota of $ i $
$ N $ Initial capital of the retailer
$ m $ Carbon reduction cost coefficient
$ E_i $ The actual emission of $ i $
$ T_i $ Volume of emission trade of $ i $
Decision variables
$ w $ Wholesale price of new product
$ P_i $ Retail price of $ i $, where $ i=m,r $ indicates new and remanufactured products, respectively
$ \Gamma_m $ The carbon emission reduction rate
Parameters
$ c_i $ Unit production cost of $ i $
$ Q_i $ Production quantities of $ i $
$ \delta $ Discount factor of consumer value for remanufactured products
$ P_c $ Carbon price
$ r $ Bank loan interest rate
$ L_j $ Loan amount of $ j $, where $ j=1,2 $ indicates without CER, $ j=3,4 $ indicates with CER
$ e_i $ Initial carbon emission of product $ i $
$ \beta $ The percentage of carbon emissions between new product and remanufactured products
$ G_i $ Carbon quota of $ i $
$ N $ Initial capital of the retailer
$ m $ Carbon reduction cost coefficient
$ E_i $ The actual emission of $ i $
$ T_i $ Volume of emission trade of $ i $
[1]

Abdolhossein Sadrnia, Amirreza Payandeh Sani, Najme Roghani Langarudi. Sustainable closed-loop supply chain network optimization for construction machinery recovering. Journal of Industrial and Management Optimization, 2021, 17 (5) : 2389-2414. doi: 10.3934/jimo.2020074

[2]

Huaqing Cao, Xiaofen Ji. Optimal recycling price strategy of clothing enterprises based on closed-loop supply chain. Journal of Industrial and Management Optimization, 2022  doi: 10.3934/jimo.2021232

[3]

Fatemeh Kangi, Seyed Hamid Reza Pasandideh, Esmaeil Mehdizadeh, Hamed Soleimani. The optimization of a multi-period multi-product closed-loop supply chain network with cross-docking delivery strategy. Journal of Industrial and Management Optimization, 2021  doi: 10.3934/jimo.2021118

[4]

Yi Jing, Wenchuan Li. Integrated recycling-integrated production - distribution planning for decentralized closed-loop supply chain. Journal of Industrial and Management Optimization, 2018, 14 (2) : 511-539. doi: 10.3934/jimo.2017058

[5]

Wenbin Wang, Peng Zhang, Junfei Ding, Jian Li, Hao Sun, Lingyun He. Closed-loop supply chain network equilibrium model with retailer-collection under legislation. Journal of Industrial and Management Optimization, 2019, 15 (1) : 199-219. doi: 10.3934/jimo.2018039

[6]

Reza Lotfi, Yahia Zare Mehrjerdi, Mir Saman Pishvaee, Ahmad Sadeghieh, Gerhard-Wilhelm Weber. A robust optimization model for sustainable and resilient closed-loop supply chain network design considering conditional value at risk. Numerical Algebra, Control and Optimization, 2021, 11 (2) : 221-253. doi: 10.3934/naco.2020023

[7]

Maedeh Agahgolnezhad Gerdrodbari, Fatemeh Harsej, Mahboubeh Sadeghpour, Mohammad Molani Aghdam. A robust multi-objective model for managing the distribution of perishable products within a green closed-loop supply chain. Journal of Industrial and Management Optimization, 2021  doi: 10.3934/jimo.2021107

[8]

Dingzhong Feng, Xiaofeng Zhang, Ye Zhang. Collection decisions and coordination in a closed-loop supply chain under recovery price and service competition. Journal of Industrial and Management Optimization, 2021  doi: 10.3934/jimo.2021117

[9]

Zhidan Wu, Xiaohu Qian, Min Huang, Wai-Ki Ching, Hanbin Kuang, Xingwei Wang. Channel leadership and recycling channel in closed-loop supply chain: The case of recycling price by the recycling party. Journal of Industrial and Management Optimization, 2021, 17 (6) : 3247-3268. doi: 10.3934/jimo.2020116

[10]

Guangzhou Yan, Qinyu Song, Yaodong Ni, Xiangfeng Yang. Pricing, carbon emission reduction and recycling decisions in a closed-loop supply chain under uncertain environment. Journal of Industrial and Management Optimization, 2021  doi: 10.3934/jimo.2021181

[11]

Benrong Zheng, Xianpei Hong. Effects of take-back legislation on pricing and coordination in a closed-loop supply chain. Journal of Industrial and Management Optimization, 2022, 18 (3) : 1603-1627. doi: 10.3934/jimo.2021035

[12]

Kaveh Keshmiry Zadeh, Fatemeh Harsej, Mahboubeh Sadeghpour, Mohammad Molani Aghdam. Designing a multi-echelon closed-loop supply chain with disruption in the distribution centers under uncertainty. Journal of Industrial and Management Optimization, 2022  doi: 10.3934/jimo.2022057

[13]

Masoud Mohammadzadeh, Alireza Arshadi Khamseh, Mohammad Mohammadi. A multi-objective integrated model for closed-loop supply chain configuration and supplier selection considering uncertain demand and different performance levels. Journal of Industrial and Management Optimization, 2017, 13 (2) : 1041-1064. doi: 10.3934/jimo.2016061

[14]

Xiao-Xu Chen, Peng Xu, Jiao-Jiao Li, Thomas Walker, Guo-Qiang Yang. Decision-making in a retailer-led closed-loop supply chain involving a third-party logistics provider. Journal of Industrial and Management Optimization, 2022, 18 (2) : 1161-1183. doi: 10.3934/jimo.2021014

[15]

Yanting Huang, Zongjun Wang. Pricing decisions for closed-loop supply chains with technology licensing and carbon constraint under reward-penalty mechanism. Journal of Industrial and Management Optimization, 2022  doi: 10.3934/jimo.2022103

[16]

Kai Kang, Taotao Lu, Jing Zhang. Financing strategy selection and coordination considering risk aversion in a capital-constrained supply chain. Journal of Industrial and Management Optimization, 2022, 18 (3) : 1737-1768. doi: 10.3934/jimo.2021042

[17]

Simon Hochgerner. Symmetry actuated closed-loop Hamiltonian systems. Journal of Geometric Mechanics, 2020, 12 (4) : 641-669. doi: 10.3934/jgm.2020030

[18]

Xiaohong Chen, Kui Li, Fuqiang Wang, Xihua Li. Optimal production, pricing and government subsidy policies for a closed loop supply chain with uncertain returns. Journal of Industrial and Management Optimization, 2020, 16 (3) : 1389-1414. doi: 10.3934/jimo.2019008

[19]

Nina Yan, Baowen Sun. Comparative analysis of supply chain financing strategies between different financing modes. Journal of Industrial and Management Optimization, 2015, 11 (4) : 1073-1087. doi: 10.3934/jimo.2015.11.1073

[20]

Justine Yasappan, Ángela Jiménez-Casas, Mario Castro. Stabilizing interplay between thermodiffusion and viscoelasticity in a closed-loop thermosyphon. Discrete and Continuous Dynamical Systems - B, 2015, 20 (9) : 3267-3299. doi: 10.3934/dcdsb.2015.20.3267

2021 Impact Factor: 1.411

Metrics

  • PDF downloads (437)
  • HTML views (351)
  • Cited by (0)

Other articles
by authors

[Back to Top]