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Sustainability 2016, 8(7), 639; doi:10.3390/su8070639

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

Glorious Sun School of Business and Management, Donghua University, Shanghai 200051, China
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Received: 31 May 2016 / Accepted: 4 July 2016 / Published: 6 July 2016
(This article belongs to the Special Issue Eco-innovation and Competitiveness)
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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. View Full-Text
Keywords: sustainable design; supply chain; profit maximization; demand quantity maximization; Lagrangian method sustainable design; supply chain; profit maximization; demand quantity maximization; Lagrangian method
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Li, Q.; Shen, B. Sustainable Design Operations in the Supply Chain: Non-Profit Manufacturer vs. For-Profit Manufacturer. Sustainability 2016, 8, 639.

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