Abstract
This paper examines a farmer’s channel selection in a supply chain led by a retailer, considering carbon emissions and products’ deterioration. Three channels—online channels, retail channels, and dual channels—are proposed. The inventory model of perishable products and the two-stage Stackelberg game model are used to illustrate the operational process. To compare performances of the three channel structures, we further determine the critical points consisting of the profits and the carbon emissions among these channels. The results provide useful insights for supply chain members and the government. Farmers can choose a channel to optimize profit with respect to deterioration rate and product yield, but it might conflict with the aim of least carbon emissions. When the deterioration rate is high, the online channel is not a suitable choice. For the government, the carbon tax contributes to the reduction of carbon emissions, but it also leads to the loss of the farmer’s profit. Additionally, numerical results further illustrate that, from the perspective of the government, transporting and inventory processes are two major sources of emissions, and it is essential to implement carbon tax and exploit low-carbon transportation.
Highlights
China is a large agricultural country with a population of over 560 million farmers [1]
The market is mostly dominated by offline retailers or giant wholesalers, who usually hold more power to be the leader in the supply chain [7]
Based on the above background, the channel selection is quite significant under the carbon tax policy and the Internet economy background for both farmers and the government
Summary
China is a large agricultural country with a population of over 560 million farmers [1]. Based on the above background, the channel selection is quite significant under the carbon tax policy and the Internet economy background for both farmers and the government. There are few systematic studies on the impact of carbon emissions on the farmer’s channel selection, especially considering the deterioration rate of agricultural products and the carbon tax on supply chain members. The goal of this paper is to fill in the gap by finding out the optimal producing and sales plan for the farmer, comparing and analyzing the carbon emissions of different channels for the government. This paper compares and analyzes the optimal profits that the farmer can obtain through different channels when the yield is known. In order to do the above analysis, we study three different channels to discuss the farmer’s selection with or without the carbon tax policy.
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