Joint operations management, pricing and greenness decisions based on government subsidies under VMI with consignment stock contract, cap-and-trade regulation, and margin effects of greening
EUROPEAN JOURNAL OF INDUSTRIAL ENGINEERING, cilt.22, sa.3, ss.389-449, 2026 (SCI-Expanded, Scopus)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 22 Sayı: 3
- Basım Tarihi: 2026
- Doi Numarası: 10.1504/ejie.2026.156564
- Dergi Adı: EUROPEAN JOURNAL OF INDUSTRIAL ENGINEERING
- Derginin Tarandığı İndeksler: Scopus, Science Citation Index Expanded (SCI-EXPANDED), Compendex, INSPEC
- Sayfa Sayıları: ss.389-449
- Süleyman Demirel Üniversitesi Adresli: Evet
Özet
A centralised supply chain model of vendor-managed inventory with consignment stock has been developed to demonstrate market expansion and margin effects from green efforts. The market typically prioritises green products. The demand for the product is influenced by a variety of factors, including the retail price and the level of investment in green technology. The effects of cost and subsidies for emission reduction on decisions about inventory, pricing and greenness are investigated under a system of cap-and-trade regulation. With both players investing, the emission reduction subsidy can offer lower prices and therefore cost per item, leading to higher demand and inducing more green production and greater greening efforts, with the supply chain system increasing its profits and reducing emissions under the cost-reduction subsidy. The findings revealed that the optimal solution for carbon emissions and system profit in a supply chain can be achieved through the modification of a single parameter, which may be retail price, greenness level, number of shipments, or lot size. The model's flexibility renders it accessible to practitioners.