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Article

Green Procurement Relationships Development under Carbon Emissions Regulations: A Bi-Level Programming Approach

by 1 and 2,3,*
1
College of Management Science, Chengdu University of Technology, Chengdu 610059, China
2
College of Business Administration, Zhejiang University of Finance and Economics, Hangzhou 310018, China
3
School of Economics and Management, Fuzhou University, Fuzhou 350116, China
*
Author to whom correspondence should be addressed.
Int. J. Environ. Res. Public Health 2018, 15(10), 2183; https://doi.org/10.3390/ijerph15102183
Received: 22 July 2018 / Revised: 23 September 2018 / Accepted: 29 September 2018 / Published: 6 October 2018
(This article belongs to the Special Issue Operations and Innovations for the Environment)
A multi-period Stackelberg game is adopted to study a green procurement relationship between manufacturers and suppliers in a supply chain. The manufacturers are considered as leaders, while the suppliers are modelled as followers in this Stackelberg game. Accordingly, a mixed binary linear bi-level programming model is developed to elaborate the game in consideration of carbon tax scheme. The upper level (the leader) aims at selecting a proper number of suitable suppliers to provide heterogeneous raw materials at the lowest operational cost. The objective of the lower level (the follower) is to find optimal purchasing quantities of raw materials. In addition, two lemmas are introduced to transform the mixed linear bi-level programming model into a single level linear programming model. The numerical example illustrates that: (1) the manufacturer prefers to adopt the multiple sourcing strategy due to the flexibility; (2) keeping stable supplies and large order volumes could effectively reduce carbon emissions for the suppliers and make the supply chain greener. View Full-Text
Keywords: supply chain management; optimization; bi-level programming; Stackelberg game; carbon emissions supply chain management; optimization; bi-level programming; Stackelberg game; carbon emissions
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MDPI and ACS Style

Bao, X.-Y.; Zhang, L. Green Procurement Relationships Development under Carbon Emissions Regulations: A Bi-Level Programming Approach. Int. J. Environ. Res. Public Health 2018, 15, 2183. https://doi.org/10.3390/ijerph15102183

AMA Style

Bao X-Y, Zhang L. Green Procurement Relationships Development under Carbon Emissions Regulations: A Bi-Level Programming Approach. International Journal of Environmental Research and Public Health. 2018; 15(10):2183. https://doi.org/10.3390/ijerph15102183

Chicago/Turabian Style

Bao, Xiao-Ying, and Lei Zhang. 2018. "Green Procurement Relationships Development under Carbon Emissions Regulations: A Bi-Level Programming Approach" International Journal of Environmental Research and Public Health 15, no. 10: 2183. https://doi.org/10.3390/ijerph15102183

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