Modeling, Simulation and Optimization of Supply Chains

A special issue of Mathematics (ISSN 2227-7390). This special issue belongs to the section "Computational and Applied Mathematics".

Deadline for manuscript submissions: closed (1 February 2024) | Viewed by 16915

Special Issue Editors


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Guest Editor
Faculty of Business Administration, University of Macau, Taipa, Macau
Interests: service and operations management; optimization; data analysis
Department of Decision Sciences, School of Business, Macau University of Science and Technology, Taipa, Macau
Interests: supply chain finance; supply chain coordination; service operations

Special Issue Information

Dear Colleagues,

The Special Issue seeks to attract original yet relevant academic contributions examining the above issues (non-exclusive) related to the cutting edge of the supply chain model, such as data-driven supply chains, blockchain technology in supply chains, sustainable supply chains,  supply chain financing, etc.

Prof. Dr. Zhaotong Lian
Dr. Xin Li
Guest Editors

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Keywords

  • supply chain management
  • green supply chain
  • sustainable supply chain
  • supply chain coordination
  • supply contract
  • supply chain finance
  • service supply chain
  • service and operations management
  • optimization of supply chain
  • data driven supply chain management
  • blockchain in supply chain

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Published Papers (11 papers)

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Research

25 pages, 2164 KiB  
Article
Emission Reduction Decisions in Blockchain-Enabled Low-Carbon Supply Chains under Different Power Structures
by Manman Jiang, Liping Qin, Wenjin Zuo and Qiang Hu
Mathematics 2024, 12(5), 704; https://doi.org/10.3390/math12050704 - 28 Feb 2024
Cited by 1 | Viewed by 1132
Abstract
With the global climate problem becoming increasingly severe, governments have adopted policies to encourage enterprises to invest in low-carbon technologies. However, the opacity of the carbon emission reduction process leads to incomplete consumer trust in low-carbon products as well as higher supply chain [...] Read more.
With the global climate problem becoming increasingly severe, governments have adopted policies to encourage enterprises to invest in low-carbon technologies. However, the opacity of the carbon emission reduction process leads to incomplete consumer trust in low-carbon products as well as higher supply chain transaction costs. Based on this, this paper constructs Stackelberg game models with and without blockchain under different power structures and compares the impact of these models on low-carbon emission reduction decisions. The results show that: (1) blockchain does not necessarily improve enterprise profits and can only help enterprises maintain optimal profits within a certain range when the carbon emission cost is low; (2) when consumers’ environmental awareness is high, the blockchain can incentivize manufacturers to enhance carbon emission reduction, and it has an obvious promotional effect on retailers’ profits; and (3) the profit gap between enterprises in the supply chain is larger under different power structures, and the implementation of blockchain can coordinate profit distribution and narrow the gap between enterprises. Compared with the manufacturer-dominated model, the emission reduction in products is maximized under the retailer-dominated model. Our study provides theoretical support for the government to regulate greenhouse gas emissions as well as for the optimization of enterprises’ decision-making supported by blockchain. Full article
(This article belongs to the Special Issue Modeling, Simulation and Optimization of Supply Chains)
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20 pages, 1885 KiB  
Article
Urban Economic Resilience and Supply Chain Dynamics: Evaluating Monetary Recovery Policies in Global Cities during the Early COVID-19 Pandemic
by Jin Li, Guie Fu and Xichen Zhao
Mathematics 2024, 12(5), 673; https://doi.org/10.3390/math12050673 - 25 Feb 2024
Cited by 1 | Viewed by 1279
Abstract
The COVID-19 pandemic has profoundly impacted global economies, underscoring the urgency of deriving lessons to enhance future crisis preparedness. This study explores the effects of monetary recovery policies on supply chain dynamics across key global cities during the pandemic’s initial phase, emphasising policy [...] Read more.
The COVID-19 pandemic has profoundly impacted global economies, underscoring the urgency of deriving lessons to enhance future crisis preparedness. This study explores the effects of monetary recovery policies on supply chain dynamics across key global cities during the pandemic’s initial phase, emphasising policy interactions, industry engagement, and economic resilience. Utilising principal component analysis (PCA), data envelopment analysis (DEA), and tobit regression, we present a pioneering method to unravel the complex relationship between economic policies and urban supply chains. PCA simplifies data complexity and reveals complex policy-resilience relationships, while DEA facilitates a comparative efficiency analysis. Our findings underscore the critical importance of supply chain resilience in fostering early economic recovery, indicating that cities implementing diverse, sector-specific policies achieved more notable improvements in gross domestic product (GDP). This research not only advances methodological approaches for policy evaluation but also provides valuable insights for optimising urban economic recovery strategies amidst global challenges. Full article
(This article belongs to the Special Issue Modeling, Simulation and Optimization of Supply Chains)
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20 pages, 1854 KiB  
Article
Blockchain Adoption and Organic Subsidy in an Agricultural Supply Chain Considering Market Segmentation
by Chunmei Li, Tianjian Yang and Ying Shi
Mathematics 2024, 12(1), 106; https://doi.org/10.3390/math12010106 - 28 Dec 2023
Cited by 1 | Viewed by 1487
Abstract
The quality authenticity of organic agricultural products has always been a hot issue for consumers. Blockchain’s advantages in information traceability and preventing data from being tampered with can reduce fake and counterfeit products, increasing the consumers’ trust in the quality of organic agricultural [...] Read more.
The quality authenticity of organic agricultural products has always been a hot issue for consumers. Blockchain’s advantages in information traceability and preventing data from being tampered with can reduce fake and counterfeit products, increasing the consumers’ trust in the quality of organic agricultural products. Considering market segmentation of consumer types in organic agricultural products (OPs) and conventional agricultural products (CPs), this study builds a game-theoretical model to explore how participants decide between blockchain traceability platforms and organic subsidy strategies. Results show that the producer should introduce the blockchain when the fraction of blockchain technology’s total cost shared by the producer is smaller and the fixed cost of implementing blockchain is higher or when the fraction of blockchain technology’s total cost shared by the producer is higher and the fixed cost of implementing blockchain is lower. The retailer is inclined to an organic subsidy, and the smaller the market proportion of undifferentiated-conscious consumers (UCCs), the more inclined the retailer is to the organic subsidy strategy. In addition, the market share of UCCs positively promotes the sales quantities and supply chain profits of CPs but is not conducive to the sales quantities of OPs. Full article
(This article belongs to the Special Issue Modeling, Simulation and Optimization of Supply Chains)
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20 pages, 4805 KiB  
Article
Designing a Renewable Jet Fuel Supply Chain: Leveraging Incentive Policies to Drive Commercialization and Sustainability
by Sajad Ebrahimi, Joseph Szmerekovsky, Bahareh Golkar and Seyed Ali Haji Esmaeili
Mathematics 2023, 11(24), 4915; https://doi.org/10.3390/math11244915 - 10 Dec 2023
Viewed by 1568
Abstract
Renewable jet fuel (RJF) production has been recognized as a promising approach for reducing the aviation sector’s carbon footprint. Over the last decade, the commercial production of RJF has piqued the interest of airlines and governments around the world. However, RJF production can [...] Read more.
Renewable jet fuel (RJF) production has been recognized as a promising approach for reducing the aviation sector’s carbon footprint. Over the last decade, the commercial production of RJF has piqued the interest of airlines and governments around the world. However, RJF production can be challenging due to its dispersed supply resources. Furthermore, the production of RJF is more costly compared to producing conventional jet fuel. In this study, using a mixed integer linear programming (MILP), we design a corn-stover-based RJF supply chain network in which we obtain an optimized configuration of the supply chain and determine operational decisions required to meet RJF demand at airports. To accelerate the commercialization of RJF production, we examined four incentive programs designed to cover the supply chain’s costs, with agricultural statistics districts serving as the designated supply regions. This study is validated by employing the model to design the supply chain in the Midwestern United States. The results from this study are promising as they show the supply chain can achieve commercialization with partial financial coverage from the incentive programs. Based on the findings of this study, policymakers can devise policies to commercialize RJF production and accelerate its adoption by the industry. Full article
(This article belongs to the Special Issue Modeling, Simulation and Optimization of Supply Chains)
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27 pages, 2263 KiB  
Article
Analysis of Decision-Making in a Green Supply Chain under Different Carbon Tax Policies
by Liurui Deng, Jie Tan and Jiawu Dai
Mathematics 2023, 11(22), 4631; https://doi.org/10.3390/math11224631 - 13 Nov 2023
Cited by 2 | Viewed by 1210
Abstract
With the growing severity of global environmental issues, the international community has reached a consensus on the importance of reducing and controlling carbon emissions. As a result, an increasing number of consumers are opting to purchase green products in order to reduce the [...] Read more.
With the growing severity of global environmental issues, the international community has reached a consensus on the importance of reducing and controlling carbon emissions. As a result, an increasing number of consumers are opting to purchase green products in order to reduce the emission of greenhouse gases. This trend has prompted supply-chain enterprises to invest in green innovation. Simultaneously, carbon tax policies have gained significant attention from governments worldwide due to their dual role as environmental laws and fiscal-policy tools. Considering consumers’ preference for green products and the risk of R&D failure associated with them, this study focuses on the effects on emissions reductions and profits associated with different carbon tax policies for a green supply chain consisting of a manufacturer and a retailer. The results reveal that (1) increases in the carbon tax per unit of product motivate the manufacturer to increase R&D efforts; (2) wholesale and retail prices follow a pattern of initial increase and subsequent decrease as the carbon tax per unit of product rises; (3) higher carbon taxes per unit of product generally lead to lower manufacturer profits, while both carbon emissions and retailer profits can increase with a per-unit carbon tax under certain circumstances; and (4) the increase in the proportion of the population with green preferences can yield long-term benefits for both the retailer and the manufacturer, yielding an inverted U-shaped relationship with carbon emissions. Full article
(This article belongs to the Special Issue Modeling, Simulation and Optimization of Supply Chains)
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33 pages, 1652 KiB  
Article
Platform Operations under Dual-Channel Catering Supply Chain
by Xin Li, Kenan Li and Yongjian Li
Mathematics 2023, 11(16), 3610; https://doi.org/10.3390/math11163610 - 21 Aug 2023
Viewed by 1231
Abstract
In the modern catering business model, restaurants usually use established platforms to promote their food and use two channels to sell their food: online and offline sales. We construct demand functions for online and offline, considering promotion and substitution relationships by a revised [...] Read more.
In the modern catering business model, restaurants usually use established platforms to promote their food and use two channels to sell their food: online and offline sales. We construct demand functions for online and offline, considering promotion and substitution relationships by a revised Bertrand model. We first consider three classic models: the decentralized decision model, the equilibrium decision model, and the centralized decision model. In the decentralized decision model, the platform decides both the promotional effort and the online discount; in the equilibrium decision model, the platform decides the online discount, while the food service provider decides the promotional effort. In the centralized decision model, the takeaway platform and the food service provider have maximized the overall profit as the decisive goal. We find that the online discount decreases in price when the impact factor of the online promotion is high but increases in price when the impact factor of the online promotion is low. Then, we analyze and compare the results under three models. We find that when the substitution factor is low enough, or the impactor factor of online promotion is low enough, the global optimal platform discount is higher than the equilibrium platform discount and the decentralized online discount; otherwise, the results are the opposite. In addition, the global optimal promotional effort is always higher than the optimal promotional effort in the decentralized model. When the substitution factor is low enough, or the impactor factor of online promotion is low enough, the global optimal promotional effort is higher than the equilibrium optimal promotional effort; otherwise, the result is the opposite. Full article
(This article belongs to the Special Issue Modeling, Simulation and Optimization of Supply Chains)
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22 pages, 5876 KiB  
Article
How Does Green Store Brand Introduction Influence the Effects of Government Subsidy on Supply Chain Performance?
by Junyi Zhong and Jiazhen Huo
Mathematics 2023, 11(14), 3100; https://doi.org/10.3390/math11143100 - 13 Jul 2023
Cited by 1 | Viewed by 1296
Abstract
With the rising awareness of environmental protection and concern for sustainable development, green products have been highly favored by consumers, enterprises, and the government. As a matter of fact, not only do manufacturers produce green products, but retailers would also like to introduce [...] Read more.
With the rising awareness of environmental protection and concern for sustainable development, green products have been highly favored by consumers, enterprises, and the government. As a matter of fact, not only do manufacturers produce green products, but retailers would also like to introduce their green store brands. However, the costly green investment hinders the improvement of the products’ green degree. Therefore, the government may provide financial support to motivate enterprises to increase their products’ green degree. This study investigates how the presence of green store brands and government subsidies affect green supply chain performance. Four models are discussed using the Stackelberg game theoretic approach, and then, the optimal solutions in different cases are compared. The results show that (1) regardless of the government subsidy, the green store brand introduction always reduces the manufacturer’s profit and improves the retailer’s profit and environmental benefit; (2) In most cases, the implementation of a government subsidy can effectively improve the products’ green degree and benefit the supply chain members. However, it is surprising to find that the government subsidy may be detrimental to the manufacturer once the green store brand is introduced; (3) Interestingly, the introduction of green store brand may have an expansion effect, a shrinkage effect or even an inverse effect on the effects of government subsidies on supply chain performance, and these effects become more significant with the increasing green preference of consumers, product substitute, and subsidy rate. The new findings also provide some implications for supply chain members and the government in green supply chain management (GSCM) and green innovation. Full article
(This article belongs to the Special Issue Modeling, Simulation and Optimization of Supply Chains)
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26 pages, 605 KiB  
Article
Modeling Government Subsidy Strategies for Railway Carriers: Environmental Impacts and Industry Competition
by Jingjing Cao, Tianyi Guo and Yan Chen
Mathematics 2023, 11(14), 3049; https://doi.org/10.3390/math11143049 - 10 Jul 2023
Viewed by 1483
Abstract
In this paper, we investigate the government’s optimal subsidy strategy for the China–Europe Railway Express (CERE) considering environmental impacts and industry competition. Specifically, we consider three subsidy options: no subsidies, subsidies to CERE carriers, and subsidies to shippers. A game theory framework is [...] Read more.
In this paper, we investigate the government’s optimal subsidy strategy for the China–Europe Railway Express (CERE) considering environmental impacts and industry competition. Specifically, we consider three subsidy options: no subsidies, subsidies to CERE carriers, and subsidies to shippers. A game theory framework is developed to analyze the problem of developing a sustainable supply chain consisting of the government, competitive carriers, and shippers. First of all, we find that for the government, indirect subsidies to CERE carriers and direct subsidies to shippers lead to the same total social welfare. We then examine the conditions for phasing out government subsidies. Our results indicate that the government’s optimal subsidy strategy switches at a threshold level of CERE’s environmental advantage. In particular, when the environmental advantage of CERE is high, the government should subsidize CERE by subsidizing either the carrier or shipper. In contrast, when the environmental advantage of CERE is low, the government should opt out of subsidies. At last, we find that this threshold of CERE’s environmental advantage is further impacted by CERE’s capacity and marginal operating costs. This study differs from prior research by investigating various subsidy strategies while taking into account CERE’s emission advantage and the timing of subsidy withdrawal. Full article
(This article belongs to the Special Issue Modeling, Simulation and Optimization of Supply Chains)
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24 pages, 467 KiB  
Article
The Impact of Carbon Allowance Allocation Rules on Remanufacturing Decisions in a Closed-Loop Supply Chain
by Yanli Fang, Zhuoyi Ren and Fang Yang
Mathematics 2023, 11(13), 2817; https://doi.org/10.3390/math11132817 - 23 Jun 2023
Cited by 3 | Viewed by 1341
Abstract
Remanufacturing has been widely adopted in the industrial sector due to carbon emission constraints and economic benefits. This paper discusses a closed-loop supply chain composed of an original equipment manufacturer (OEM), an authorized remanufacturer (AR), that is licensed by the OEM to carry [...] Read more.
Remanufacturing has been widely adopted in the industrial sector due to carbon emission constraints and economic benefits. This paper discusses a closed-loop supply chain composed of an original equipment manufacturer (OEM), an authorized remanufacturer (AR), that is licensed by the OEM to carry out remanufacturing activities in the presence of strategic consumers under carbon cap-and-trade regulations. We establish a Stackelberg game model to identify the optimal manufacturing/remanufacturing decisions made by chain members, and compare the impacts of two different carbon allowance allocation rules on the optimal production decisions and profits, and on the environment. The results showed that optimal decisions in a closed-loop supply chain are affected by the carbon price, carbon allowance allocation, and consumer preferences for remanufactured products. In addition, for high-emission enterprises, the grandfathering rule performs better than the benchmarking rule, yielding higher profits and less environmental impact. The government should take into account the actual economic and production technological developments, implement the benchmarking rule for low-emission enterprises, and apply the grandfathering rule to high-emission enterprises. Full article
(This article belongs to the Special Issue Modeling, Simulation and Optimization of Supply Chains)
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26 pages, 1965 KiB  
Article
Pricing and Carbon-Emission-Reduction Decisions under the BOPS Mode with Low-Carbon Preference from Customers
by Han Wang, Chuan Pang and Huajun Tang
Mathematics 2023, 11(12), 2736; https://doi.org/10.3390/math11122736 - 16 Jun 2023
Cited by 7 | Viewed by 1410
Abstract
The need to mitigate the impacts of climate change has been a worldwide consensus. Cap and trade regulations have been introduced to make the world achieve carbon peaks and neutrality. There are also growing concerns regarding low carbon management. Considering both cap and [...] Read more.
The need to mitigate the impacts of climate change has been a worldwide consensus. Cap and trade regulations have been introduced to make the world achieve carbon peaks and neutrality. There are also growing concerns regarding low carbon management. Considering both cap and trade regulations and low-carbon preferences from customers, this study focuses on reducing carbon emissions and pricing decisions in the dual-channel supply chain based on game theory. Furthermore, it analyzes the effects of low-carbon preference (LCP) on emission-reduction efforts and the profits of supply chain members. Finally, it investigates the impact of promoting low-carbon products on optimal decisions and profits. The results conclude that (1) the growth of customers’ LCP level motivates the manufacturer to have more investment in emission reduction with the BOPS unit compensation or full-sales transfer mode; (2) the increase in customers’ LCP level would benefit the supply chain members; (3) the joint emission-reduction strategy can strengthen the positive impact of LCP level on the manufacturer’s emission-reduction effort and the profits supply chain members; and (4) the joint emission-reduction strategy is preferable for the supply chain members compared to the single emission-reduction strategy. However, the joint emission strategy is not always better than the single emission strategy with respect to the selling price. Finally, it provides managerial implications for decision-makers and potential issues for future research. Full article
(This article belongs to the Special Issue Modeling, Simulation and Optimization of Supply Chains)
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23 pages, 1073 KiB  
Article
Green Supply Chain Coordination Considering Carbon Emissions and Product Green Level Dependent Demand
by Xin Li and Guanlai Zhu
Mathematics 2023, 11(10), 2355; https://doi.org/10.3390/math11102355 - 18 May 2023
Cited by 2 | Viewed by 1794
Abstract
As traditional supply chains face increasingly severe environmental issues, and as countries promote green development and sustainable development policy concepts, cultivating green supply chain operation models is gradually coming to be highly valued by governments and enterprises. Generally speaking, the production of green [...] Read more.
As traditional supply chains face increasingly severe environmental issues, and as countries promote green development and sustainable development policy concepts, cultivating green supply chain operation models is gradually coming to be highly valued by governments and enterprises. Generally speaking, the production of green products incurs higher additional costs, and thus, their total production costs also increase. In this work, we studied the coordination mechanism, by considering carbon emissions and product green level dependent demand, in which the product green level is related to the random demand. Under the green supply chain buyback contract with the green product R&D cost sharing between the manufacturer and the retailer, both the product green level and the order quantity need to be decided, to maximize the channel profit. In order to coordinate the green supply chain, the manufacturer needs to share both the risk of good salvage and the green product R&D cost with the retailer. We found that both the wholesale price and the buyback price increase in the manufacturer’s proposition of the green product R&D cost, but decrease in the emission reduction efficiency coefficient or carbon trading price. In addition, the product green level, the optimal order quantity and the channel profit increase in the emission reduction efficiency coefficient, but decrease in the R&D cost coefficient of the product green level. Interestingly, we found that if the carbon trading price is low, the manufacturer will set a low product green level, and the product carbon emission trading is a cost for the supply chain. The increment of the carbon trading price leads to a higher cost, such that the channel profit is decreased. However, if the carbon trading price is high, the manufacturer will set a high product green level, and the product carbon emission trading is a revenue for the supply chain. The increment of the carbon trading price leads to a higher revenue, such that the channel profit is increased. Full article
(This article belongs to the Special Issue Modeling, Simulation and Optimization of Supply Chains)
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