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Operations and Supply Chain Management Commons™
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Full-Text Articles in Operations and Supply Chain Management
The Quest For Carbon-Neutral Industrial Operations: Renewable Power Purchase Versus Distributed Generation, Tongdan Jin, Tianqin Shi, Taeho Park
The Quest For Carbon-Neutral Industrial Operations: Renewable Power Purchase Versus Distributed Generation, Tongdan Jin, Tianqin Shi, Taeho Park
Faculty Publications
Integrating renewable energy into the manufacturing facility is the ultimate key to realising carbon-neutral operations. Although many firms have taken various initiatives to reduce the carbon footprint of their facilities, there are few quantitative studies focused on cost analysis and supply reliability of integrating intermittent wind and solar power. This paper aims to fill this gap by addressing the following question: shall we adopt power purchase agreement (PPA) or onsite renewable generation to realise the eco-economic benefits? We tackle this complex decision-making problem by considering two regulatory options: government carbon incentives and utility pricing policy. A stochastic programming model is …
Supply Chain Coordination With Two-Part Tariffs Under Information Asymmetry, Chongqi Wu, Kunpeng Lu, Tianqin Shi
Supply Chain Coordination With Two-Part Tariffs Under Information Asymmetry, Chongqi Wu, Kunpeng Lu, Tianqin Shi
Faculty Publications
Supply chain coordination literature indicates that two-part tariff contracts cannot coordinate a supply chain with a supplier and a retailer under information asymmetry, but can coordinate the channel under full information, while leaving the retailer zero profit. Motivated by the practice of Costco Business Centres, we incorporate customer heterogeneity, near-saturated retail market and asymmetric information into a stylised model. The retailer has the knowledge of customer heterogeneity while the supplier does not. The supplier, on the other hand, designs a menu of two-part tariffs for the retailer to choose from. We have found that two-part tariffs can coordinate the supply …