Joint replenishment and carbon trading in fresh food supply chains

Min Wang, Lindu Zhao and Michael Herty

European Journal of Operational Research, 2019, vol. 277, issue 2, 561-573

Abstract: We investigate a fresh food supply chain comprising a large-scale supplier and multiple small-scale retailers under a carbon cap-and-trade policy. Retailers' joint replenishment and the carbon trading behavior of supply chain members are studied. We assume that three replenishment strategies are available for the supply chain: (1) separate replenishment; (2) joint replenishment: a leader-follower relationship among retailers; and (3) joint replenishment: the coalition of retailers. Under each strategy, a bargaining framework for supply chain members is set up to maximize their profits, where the price of the refrigerated transportation services provided by the supplier and the retail price of fresh food are optimized. The optimal decisions are analyzed to provide insights into logistics pricing and retail pricing strategies. Through comparing three replenishment strategies, we also identify the optimal replenishment strategies from the perspectives of the supplier, retailers and a carbon emission optimizer. Moreover, we investigate the role of the carbon cap-and-trade policy by comparing the cases with and without a carbon cap-and-trade policy. It is noteworthy that the goals of profit growth and emission reduction are simultaneously achieved under the carbon cap-and-trade policy.

Keywords: Supply chain management; Joint replenishment; Carbon trading; Fresh food; Bargaining game (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (29)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0377221719302267
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:277:y:2019:i:2:p:561-573

DOI: 10.1016/j.ejor.2019.03.004

Access Statistics for this article

European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().