IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i21p5911-d279868.html
   My bibliography  Save this article

A Multi-Objective Optimization Model for Green Supply Chain Considering Environmental Benefits

Author

Listed:
  • Jie Jian

    (School of Economic and Management, Chongqing University of Posts and Telecommunications, Chongqing 400065, China)

  • Yu Guo

    (School of Economic and Management, Chongqing University of Posts and Telecommunications, Chongqing 400065, China)

  • Lin Jiang

    (School of Economic and Management, Chongqing University of Posts and Telecommunications, Chongqing 400065, China)

  • Yanyan An

    (School of Economic and Management, Chongqing University of Posts and Telecommunications, Chongqing 400065, China)

  • Jiafu Su

    (Chongqing Key Laboratory of Electronic Commerce & Supply Chain System, National Research Base of Intelligent Manufacturing Service, Chongqing Technology and Business University, Chongqing 400067, China
    School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China)

Abstract

Whether the upstream and downstream members in a supply chain (considering environmental objectives) simultaneously stabilize economic benefits has become an important problem in the process of green development. However, few quantitative studies on green supply chains have considered environmental and economic benefits to realize multi-objective optimization. To study operation and cooperation strategies with a consideration of the different objective on the level of supply chain, we first establish a green supply chain game model with profit and environment objectives simultaneously considered by the manufacturer. Then, we analyze the multi-objective decisions of the supply chain members under centralized control using a manufacturer-led Stackelberg game and revenue-sharing contract. Using the manufacturer’s environmental preference as a variable, the effects of environmental benefits on the supply chain are also investigated. Finally, this study determines that the manufacturer’s profit will be reduced after considering the objective of environmental benefits, while the retailer’s profit, product greenness, and environmental benefits will be improved. Meanwhile, the total profit of the green supply chain will first increase and then decrease. In particular, a revenue-sharing contract can facilitate the coordination of multiple objectives; in this way, both the manufacturer and the retailer achieve higher profits and environmental benefits compared to a decentralized control condition, which is of great significance in achieving a win–win situation for the economy and the environment.

Suggested Citation

  • Jie Jian & Yu Guo & Lin Jiang & Yanyan An & Jiafu Su, 2019. "A Multi-Objective Optimization Model for Green Supply Chain Considering Environmental Benefits," Sustainability, MDPI, vol. 11(21), pages 1-20, October.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:21:p:5911-:d:279868
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/21/5911/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/21/5911/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ghosh, Debabrata & Shah, Janat, 2012. "A comparative analysis of greening policies across supply chain structures," International Journal of Production Economics, Elsevier, vol. 135(2), pages 568-583.
    2. Yun Bai & Zhenzhong Sun & Bo Zeng & Jianyu Long & Lin Li & José Valente Oliveira & Chuan Li, 2019. "A comparison of dimension reduction techniques for support vector machine modeling of multi-parameter manufacturing quality prediction," Journal of Intelligent Manufacturing, Springer, vol. 30(5), pages 2245-2256, June.
    3. Mirhedayatian, Seyed Mostafa & Azadi, Majid & Farzipoor Saen, Reza, 2014. "A novel network data envelopment analysis model for evaluating green supply chain management," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 544-554.
    4. Jiafu Su & Chi Li & Qingjun Zeng & Jiaquan Yang & Jie Zhang, 2019. "A Green Closed-Loop Supply Chain Coordination Mechanism Based on Third-Party Recycling," Sustainability, MDPI, vol. 11(19), pages 1-14, September.
    5. Gao Xiang Lou & Hai Yang Xia & Jie Qiong Zhang & Ti Jun Fan, 2015. "Investment Strategy of Emission-Reduction Technology in a Supply Chain," Sustainability, MDPI, vol. 7(8), pages 1-25, August.
    6. Jie Yang & Jiafu Su & Lijun Song, 2019. "Selection of Manufacturing Enterprise Innovation Design Project Based on Consumer’s Green Preferences," Sustainability, MDPI, vol. 11(5), pages 1-16, March.
    7. Ghosh, Debabrata & Shah, Janat, 2015. "Supply chain analysis under green sensitive consumer demand and cost sharing contract," International Journal of Production Economics, Elsevier, vol. 164(C), pages 319-329.
    8. Jiafu Su & Chi Li & Sang-Bing Tsai & Hui Lu & Aijun Liu & Quan Chen, 2018. "A Sustainable Closed-Loop Supply Chain Decision Mechanism in the Electronic Sector," Sustainability, MDPI, vol. 10(4), pages 1-15, April.
    9. Fernando Bernstein & Awi Federgruen, 2005. "Decentralized Supply Chains with Competing Retailers Under Demand Uncertainty," Management Science, INFORMS, vol. 51(1), pages 18-29, January.
    10. Tom Waas & Jean Hugé & Thomas Block & Tarah Wright & Francisco Benitez-Capistros & Aviel Verbruggen, 2014. "Sustainability Assessment and Indicators: Tools in a Decision-Making Strategy for Sustainable Development," Sustainability, MDPI, vol. 6(9), pages 1-23, August.
    11. Leng, Mingming & Parlar, Mahmut, 2009. "Lead-time reduction in a two-level supply chain: Non-cooperative equilibria vs. coordination with a profit-sharing contract," International Journal of Production Economics, Elsevier, vol. 118(2), pages 521-544, April.
    12. Tom Waas & Jean Huge & Thomas BLOCK & Tarah Wright & Francisco Javier Benitez Capistros & Aviel Verbruggen, 2014. "Sustainability assessment and indicators: Tools in a decision-making strategy for sustainable development," ULB Institutional Repository 2013/189410, ULB -- Universite Libre de Bruxelles.
    13. Rylie E.O. Pelton & Timothy M. Smith, 2015. "Hotspot Scenario Analysis," Journal of Industrial Ecology, Yale University, vol. 19(3), pages 427-440, June.
    14. Shaofu Du & Li Hu & Li Wang, 2017. "Low-carbon supply policies and supply chain performance with carbon concerned demand," Annals of Operations Research, Springer, vol. 255(1), pages 569-590, August.
    15. Albert Y. Ha & Quan Tian & Shilu Tong, 2017. "Information Sharing in Competing Supply Chains with Production Cost Reduction," Manufacturing & Service Operations Management, INFORMS, vol. 19(2), pages 246-262, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wen Zhang & Qinghe Yuan & Shun Jia & Zhaojun (Steven) Li & Xianhui Yin, 2021. "Multi-Objective Optimization of Forth Flotation Process: An Application in Gold Ore," Sustainability, MDPI, vol. 13(15), pages 1-16, July.
    2. Xin Yu & Sid Suntrayuth & Jiafu Su, 2020. "A Comprehensive Evaluation Method for Industrial Sewage Treatment Projects Based on the Improved Entropy-TOPSIS," Sustainability, MDPI, vol. 12(17), pages 1-11, August.
    3. Baodong Li & Yu Yang & Jiafu Su & Zhichao Liang & Sheng Wang, 2020. "Two-sided matching decision-making model with hesitant fuzzy preference information for configuring cloud manufacturing tasks and resources," Journal of Intelligent Manufacturing, Springer, vol. 31(8), pages 2033-2047, December.
    4. Deyan Yang & Jinyong Wang & Dongping Song, 2019. "Channel Structure Strategies of Supply Chains with Varying Green Cost and Governmental Interventions," Sustainability, MDPI, vol. 12(1), pages 1-26, December.
    5. Wenming Sun & Leilei Jiang & Ke Dong, 2023. "Research on Supply Chain Coordination Decision Model Based on Green Technology," SAGE Open, , vol. 13(3), pages 21582440231, August.
    6. Liu Yang & Han Qin & Quanxin Gan & Jiafu Su, 2020. "Internal Control Quality, Enterprise Environmental Protection Investment and Finance Performance: An Empirical Study of China’s A-Share Heavy Pollution Industry," IJERPH, MDPI, vol. 17(17), pages 1-15, August.
    7. Md. Rabbi & Syed Mithun Ali & Golam Kabir & Zuhayer Mahtab & Sanjoy Kumar Paul, 2020. "Green Supply Chain Performance Prediction Using a Bayesian Belief Network," Sustainability, MDPI, vol. 12(3), pages 1-19, February.
    8. Hui Zhang & Xin Su, 2021. "The Applications and Complexity Analysis Based on Supply Chain Enterprises’ Green Behaviors under Evolutionary Game Framework," Sustainability, MDPI, vol. 13(19), pages 1-19, October.
    9. Chun-Chin Wei & Liang-Tu Chen, 2021. "Supply Chain Replenishment Decision for Newsvendor Products with Multiple Periods and a Short Life Cycle," Sustainability, MDPI, vol. 13(22), pages 1-13, November.
    10. Mateusz Trzeciak & Izabela Jonek-Kowalska, 2021. "Monitoring and Control in Program Management as Effectiveness Drivers in Polish Energy Sector. Diagnosis and Directions of Improvement," Energies, MDPI, vol. 14(15), pages 1-25, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Wenbo, 2018. "Retailer-driven carbon emission abatement with consumer environmental awareness and carbon tax: Revenue-sharing versus Cost-sharingAuthor-Name: Yang, Huixiao," Omega, Elsevier, vol. 78(C), pages 179-191.
    2. Syed Asif Raza, 2022. "A bibliometric analysis of pricing models in supply chain," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(2), pages 228-251, April.
    3. Cai, Jianhu & Sun, Haining & Shang, Jennifer & Hegde, Gajanan G., 2023. "Information structure selection in a green supply chain: Impacts of wholesale price and greenness level," European Journal of Operational Research, Elsevier, vol. 306(1), pages 34-46.
    4. Panpan Li & Baojun Zhang & Ying Ji, 2024. "A study on supply chain optimization with uncertain demand under the cap-and-trade system," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 17449-17473, July.
    5. Yang, Huixiao & Luo, Jianwen & Wang, Haijun, 2017. "The role of revenue sharing and first-mover advantage in emission abatement with carbon tax and consumer environmental awareness," International Journal of Production Economics, Elsevier, vol. 193(C), pages 691-702.
    6. Limin Su & Yongchao Cao & Wenjuan Zhang, 2023. "Low-Carbon Supply Chain Operation Decisions and Coordination Strategies Considering the Consumers’ Preferences," Sustainability, MDPI, vol. 15(14), pages 1-20, July.
    7. Deyan Yang & Jinyong Wang & Dongping Song, 2019. "Channel Structure Strategies of Supply Chains with Varying Green Cost and Governmental Interventions," Sustainability, MDPI, vol. 12(1), pages 1-26, December.
    8. Catherine Le Roux & Marius Pretorius, 2016. "Conceptualizing the Limiting Issues Inhibiting Sustainability Embeddedness," Sustainability, MDPI, vol. 8(4), pages 1-22, April.
    9. Justyna Patalas-Maliszewska & Hanna Łosyk, 2020. "An Approach to Assessing Sustainability in the Development of a Manufacturing Company," Sustainability, MDPI, vol. 12(21), pages 1-18, October.
    10. Sofia Dahlgren & Jonas Ammenberg, 2021. "Sustainability Assessment of Public Transport, Part II—Applying a Multi-Criteria Assessment Method to Compare Different Bus Technologies," Sustainability, MDPI, vol. 13(3), pages 1-30, January.
    11. Bowon Kim & Jeong Eun Sim, 2016. "Supply Chain Coordination and Consumer Awareness for Pollution Reduction," Sustainability, MDPI, vol. 8(4), pages 1-20, April.
    12. María Luisa Pajuelo Moreno & Teresa Duarte-Atoche, 2019. "Relationship between Sustainable Disclosure and Performance—An Extension of Ullmann’s Model," Sustainability, MDPI, vol. 11(16), pages 1-33, August.
    13. Weiwei Li & Pingtao Yi & Danning Zhang, 2018. "Sustainability Evaluation of Cities in Northeastern China Using Dynamic TOPSIS-Entropy Methods," Sustainability, MDPI, vol. 10(12), pages 1-15, December.
    14. Yuxue Yang & Xuejiao Tan & Yafei Shi & Jun Deng, 2023. "What are the core concerns of policy analysis? A multidisciplinary investigation based on in-depth bibliometric analysis," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.
    15. Jiafu Su & Chi Li & Qingjun Zeng & Jiaquan Yang & Jie Zhang, 2019. "A Green Closed-Loop Supply Chain Coordination Mechanism Based on Third-Party Recycling," Sustainability, MDPI, vol. 11(19), pages 1-14, September.
    16. Svatava Janoušková & Tomáš Hák & Bedřich Moldan, 2018. "Global SDGs Assessments: Helping or Confusing Indicators?," Sustainability, MDPI, vol. 10(5), pages 1-14, May.
    17. Sungjo Hong & Ihl Kweon & Bum-Hyun Lee & Heechul Kim, 2019. "Indicators and Assessment System for Sustainability of Municipalities: A Case Study of South Korea’s Assessment of Sustainability of Cities (ASC)," Sustainability, MDPI, vol. 11(23), pages 1-21, November.
    18. Johan Du Plessis & Wouter Bam, 2018. "Comparing the Sustainable Development Potential of Industries: A Role for Sustainability Disclosures?," Sustainability, MDPI, vol. 10(3), pages 1-30, March.
    19. Jean Hugé & Nibedita Mukherjee & Camille Fertel & Jean-Philippe Waaub & Thomas Block & Tom Waas & Nico Koedam & Farid Dahdouh-Guebas, 2015. "Conceptualizing the Effectiveness of Sustainability Assessment in Development Cooperation," Sustainability, MDPI, vol. 7(5), pages 1-17, May.
    20. Kajsa Borgnäs, 2017. "Indicators as ‘circular argumentation constructs’? An input–output analysis of the variable structure of five environmental sustainability country rankings," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(3), pages 769-790, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:21:p:5911-:d:279868. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.