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Dynamic pricing is a crucial revenue management technique when product status changes over time. It can become more prominent if applied in conjunction with an inventory management strategy for deteriorating items. This paper presents a framework for dynamic pricing in a continuous time horizon for a dual-channel supply chain consisting of a manufacturer and a retailer. The manufacturer produces a deteriorating product and sells through direct and indirect retail channels, and both channels compete with each other over retail prices. The freshness of the product varies with time, and thus both channels invest in preservation technology, which further leads to carbon emissions. We derive an analytical solution to the dual-channel pricing model. Furthermore, the case of single-channel pricing has been investigated to study and compare its pricing strategy with the dual-channel pricing strategy. Lastly, a numerical illustration is presented to study the impact of key parameters on optimal decisions through sensitivity analysis. We provide managerial recommendations in various scenarios like an increase in competition, the shift of consumer preference between channels and fluctuation in demand. [ABSTRACT FROM AUTHOR]

In this paper, we study a vendor-buyer integrated supply chain with uncertain demand and random defect rate under carbon cap-and-trade policy. We assume that the lot sent by the vendor to the buyer in each shipment contains a random fraction of defective item, and a fraction of defective items can be repaired. The defective items get screened at the buyer and sent back to the vendor, and the vendor sorts out the repairable items. At the end of each production cycle, the accumulated repairable items at the vendor are repaired in a single lot. We have taken into account the carbon emissions from all the major sources, i.e. production, inventory, transportation, repairing, and scrapping. Shortages at the buyer are partially backordered. A mathematical model is formulated to minimize the total expected cost of the supply chain by optimizing the order quantity, reorder point, and the number of shipments between the vendor and buyer under carbon cap-and-trade policy. An algorithm is proposed to solve the model. A numerical example and sensitivity analysis are presented to get some managerial insights. [ABSTRACT FROM AUTHOR]

In recent years, organizations are becoming environment conscious due to stringent laws, competitive advantages and increasing awareness of customers. They are integrating environmental practices into their operations to curb carbon emissions. Regulatory bodies are also imposing carbon policies to check emission. In this paper, we developed three models considering three carbon policies (I. carbon tax, II. strict cap and III. cap-and-trade) and have determined the optimal order quantity and number of shipments for a two-echelon supply chain. The objective is to minimize the total supply chain cost which comprises the ordering, setup, production, inventory holding and transportation costs. In Model I tax on carbon emissions has been included in the cost function; in Model II we have considered a strict carbon cap on the total carbon emission; and in Model III trading price of carbon is included in the cost function. A numerical study is given to illustrate the solution procedure. Further, sensitivity analyses are performed to examine the impact of the various parameters on the total cost and total emission. [ABSTRACT FROM AUTHOR]

This paper considers a two-echelon closed-loop supply chain consisting of a manufacturer and a remanufacturer at the upper echelon and a retailer at the lower echelon. The retailer faces a constant demand from customers, which is satisfied through recovered and new products received from the remanufacturer and the manufacturer, respectively. The manufacturer produces the product with finite rate, whereas the recovery of returned product is instantaneous at the remanufacturer. We develop three models to determine the optimal production-inventory policy of the players for minimizing the joint total cost of the system. In the first model, the retailer receives the product in batches from the manufacturer and the remanufacture simultaneously, whereas in the second and third models, the batches are received alternatively. In the third model, however, the procurement of raw material at the manufacturer is also considered. Numerical illustration is presented to examine the impact of certain key parameters. [ABSTRACT FROM AUTHOR]

Consideration of carbon policies while optimizing supply chain operations has become imperative as governments and regulatory bodies throughout the world have implemented different carbon policies to reduce emissions of greenhouse gasses, especially CO2. “Carbon tax” is one of the major carbon policies, initiated by several governments to curtail emissions. In this study, we have considered this policy to optimize the total expected cost (TEC) of a two-echelon integrated supply chain with stochastic demand, where both backorders and lost sales are permitted. An unconstrained mixed integer non-linear programming (MINLP) problem is formulated and further solved to find the optimal production rate, order quantity, number of shipments and reorder point while minimizing the TEC. Emissions from all the major sources such as production, inventory and transportation have been taken into consideration. It is assumed that the emission from production is a function of production rate, and emission from transportation depends on payload and vehicle type. This study will help organizations to reduce cost and emissions, and regulatory bodies to decide proper tax rate on carbon emission. [ABSTRACT FROM AUTHOR]