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Sustainable Design Operations in the Supply Chain: Non-Profit Manufacturer vs. For-Profit Manufacturer

Author

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  • Qingying Li

    (Glorious Sun School of Business and Management, Donghua University, Shanghai 200051, China)

  • Bin Shen

    (Glorious Sun School of Business and Management, Donghua University, Shanghai 200051, China)

Abstract

Sustainable design aims to reduce the negative impacts either on people (e.g., create healthy) or on planet (e.g., minimize waste). In other words, sustainable design is the philosophy thattendstoimprovedesignperformancebyincorporatinghealthandsafetyattributes(forpeople), and environmental attributes (for planet) into products. In this paper, we develop an analytical model to examine the sustainable design operations in a supply chain which consists of one retailer and one manufacturer. The manufacturer designs the products by investigating sustainable design efforts, such that the products can better coordinate human needs. Motivated by the real industry practice, we consider two business modes for the manufacturer: a nonprofit organization (i.e., a demand quantity seeker) or a commercial firm (i.e., a profit seeker). We obtain the optimal operational decisions in both the decentralized case and the centralized case, and we also compare the results. Managerial insights are derived, and the efficiency of the sustainable design is also discussed.

Suggested Citation

  • Qingying Li & Bin Shen, 2016. "Sustainable Design Operations in the Supply Chain: Non-Profit Manufacturer vs. For-Profit Manufacturer," Sustainability, MDPI, vol. 8(7), pages 1-19, July.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:7:p:639-:d:73423
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    References listed on IDEAS

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    Cited by:

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