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Environmental implications for online retailing

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  • Carrillo, Janice E.
  • Vakharia, Asoo J.
  • Wang, Ruoxuan

Abstract

Recent press has highlighted the environmental benefits associated with online shopping, such as emissions savings from individual drivers, economies of scale in package delivery, and decreased inventories. We formulate a dual channel model for a retailer who has access to both online and traditional market outlets to analyze the impact of customer environmental sensitivity on its supply. In particular, we analyze stocking decisions for each channel incorporating price dependent demand, customer preference/utility for online channels, and channel related costs. We compare and contrast results from both deterministic and stochastic models, and utilize numerical examples to illustrate the implications of industry specific factors on these decisions. Finally, we compare and contrast the findings for disparate industries, such as electronics, books and groceries.

Suggested Citation

  • Carrillo, Janice E. & Vakharia, Asoo J. & Wang, Ruoxuan, 2014. "Environmental implications for online retailing," European Journal of Operational Research, Elsevier, vol. 239(3), pages 744-755.
    • Handle: RePEc:eee:ejores:v:239:y:2014:i:3:p:744-755
    DOI: 10.1016/j.ejor.2014.05.038
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    Cited by:

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    5. Li, Guo & Zhang, Xuefeng & Chiu, Su-Mei & Liu, Mengqi & Sethi, Suresh P., 2019. "Online market entry and channel sharing strategy with direct selling diseconomies in the sharing economy era," International Journal of Production Economics, Elsevier, vol. 218(C), pages 135-147.
    6. T. M. Rofin & Maheswar Singha Mahapatra & Biswajit Mahanty, 2021. "Impact of green retail operations on the profit of the manufacturer and the retailer under different pricing strategies," OPSEARCH, Springer;Operational Research Society of India, vol. 58(1), pages 125-143, March.
    7. Ji, Jingna & Zhang, Zhiyong & Yang, Lei, 2017. "Comparisons of initial carbon allowance allocation rules in an O2O retail supply chain with the cap-and-trade regulation," International Journal of Production Economics, Elsevier, vol. 187(C), pages 68-84.
    8. Suyuan Luo & Tsan‐Ming Choi, 2022. "E‐commerce supply chains with considerations of cyber‐security: Should governments play a role?," Production and Operations Management, Production and Operations Management Society, vol. 31(5), pages 2107-2126, May.
    9. Haodong Chen & Hengyi Zhang & Eias Al Humdan & Mohammed Alharithi & Yu Gong, 2023. "Research on Multi-Channel Supply Chain Decisions Considering Carbon Emission Cost and Consumer Loyalty," Sustainability, MDPI, vol. 15(14), pages 1-28, July.
    10. Xiaoyan Wang & Minggao Xue & Lu Xing, 2018. "Analysis of Carbon Emission Reduction in a Dual-Channel Supply Chain with Cap-And-Trade Regulation and Low-Carbon Preference," Sustainability, MDPI, vol. 10(3), pages 1-18, February.
    11. Adriana Dima & Elena Radu & Ecaterina Milica Dobrota & Adrian Otoiu & Alina Florentina Saracu, 2023. "Sustainable Development of E-commerce in the Post-COVID Times: A Mixed-Methods Analysis of Pestle Factors," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(S17), pages 1095-1095, November.
    12. Cong Zheng & Quangui Pang & Tianpei Li & Guizheng Wang & Yiji Cai & Lei Yang, 2019. "The Farmers’ Channel Selection and Sustainable Analysis under Carbon Tax Policy," Sustainability, MDPI, vol. 11(10), pages 1-24, May.
    13. Fan Ding & Zhangping Lu & Mengfan Jin & Licheng Sun, 2022. "Manufacturer’s Encroachment and Carbon Emission Reduction Decisions Considering Cap-and-Trade Regulation and Consumers’ Low-Carbon Preference," IJERPH, MDPI, vol. 19(16), pages 1-28, August.
    14. Siragusa, Chiara & Mangiaracina, Riccardo & Tumino, Angela, 2020. "Environmental sustainability in B2C e-commerce: The impact of multiitem shopping," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Jahn, Carlos & Kersten, Wolfgang & Ringle, Christian M. (ed.), Data Science in Maritime and City Logistics: Data-driven Solutions for Logistics and Sustainability. Proceedings of the Hamburg International Conferen, volume 30, pages 71-95, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    15. Yan, Nina & Zhang, Yaping & Xu, Xun & Gao, Yongling, 2021. "Online finance with dual channels and bidirectional free-riding effect," International Journal of Production Economics, Elsevier, vol. 231(C).
    16. Yong He & Peng He & Feifei Xu & Chunming (Victor) Shi, 2019. "Sustainable tourism modeling: Pricing decisions and evolutionarily stable strategies for competitive tour operators," Tourism Economics, , vol. 25(5), pages 779-799, August.
    17. Shan Chen & Xu Wang & Yingbo Wu & Fuli Zhou, 2017. "Pricing Policies of a Dual-Channel Supply Chain Considering Channel Environmental Sustainability," Sustainability, MDPI, vol. 9(3), pages 1-14, March.
    18. Zhang, Linghong & Wang, Jingguo, 2017. "Coordination of the traditional and the online channels for a short-life-cycle product," European Journal of Operational Research, Elsevier, vol. 258(2), pages 639-651.
    19. Matsui, Kenji, 2016. "Asymmetric product distribution between symmetric manufacturers using dual-channel supply chains," European Journal of Operational Research, Elsevier, vol. 248(2), pages 646-657.
    20. Judit Oláh & Nemer Aburumman & József Popp & Muhammad Asif Khan & Hossam Haddad & Nicodemus Kitukutha, 2020. "Impact of Industry 4.0 on Environmental Sustainability," Sustainability, MDPI, vol. 12(11), pages 1-21, June.

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