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Records with Keyword: Supply Chain
38. LAPSE:2023.18648
Multiscale Decision-Making for Enterprise-Wide Operations Incorporating Clustering of High-Dimensional Attributes and Big Data Analytics: Applications to Energy Hub
March 8, 2023 (v1)
Subject: Planning & Scheduling
Keywords: big data analytics, clustering, computational complexity, energy hub, multiple attributes, multiscale decision making, planning and scheduling, Supply Chain
In modern systems, there is a tendency to model issues more accurately with low computational cost and considering multiscale decision-making which increases the complexity of the optimization. Therefore, it is necessary to develop tools to cope with these new challenges. Supply chain management of enterprise-wide operations usually involves three decision levels: strategic, tactical, and operational. These decision levels depend on each other involving different time scales. Accordingly, their integration usually leads to multiscale models that are computationally intractable. In this work, the aim is to develop novel clustering methods with multiple attributes to tackle the integrated problem. As a result, a clustering structure is proposed in the form of a mixed integer non-linear program (MINLP) later converted into a mixed integer linear program (MILP) for clustering shape-based time series data with multiple attributes through a multi-objective optimization approach (since differ... [more]
39. LAPSE:2023.17932
Assessing Uncertainties of Life-Cycle CO2 Emissions Using Hydrogen Energy for Power Generation
March 7, 2023 (v1)
Subject: Planning & Scheduling
Keywords: hydrogen energy, life-cycle inventory analysis, Monte Carlo simulations, power generation, Supply Chain
Hydrogen and its energy carriers, such as liquid hydrogen (LH2), methylcyclohexane (MCH), and ammonia (NH3), are essential components of low-carbon energy systems. To utilize hydrogen energy, the complete environmental merits of its supply chain should be evaluated. To understand the expected environmental benefit under the uncertainty of hydrogen technology development, we conducted life-cycle inventory analysis and calculated CO2 emissions and their uncertainties attributed to the entire supply chain of hydrogen and NH3 power generation (co-firing and mono-firing) in Japan. Hydrogen was assumed to be produced from overseas renewable energy sources with LH2/MCH as the carrier, and NH3 from natural gas or renewable energy sources. The Japanese life-cycle inventory database was used to calculate emissions. Monte Carlo simulations were performed to evaluate emission uncertainty and mitigation factors using hydrogen energy. For LH2, CO2 emission uncertainty during hydrogen liquefaction ca... [more]
40. LAPSE:2023.15816
Management of Plastic Waste and a Circular Economy at the End of the Supply Chain: A Systematic Literature Review
March 2, 2023 (v1)
Subject: Planning & Scheduling
Keywords: circular economy, energy generation, plastic waste, Supply Chain, waste management
This article aims to describe the current state of research on plastic waste management as a circular economy practice at the end of the supply chain. The methodological strategy chosen was a systematic literature review. The articles selected from the Web of Science and Scopus databases were screened, and the research corpus consisted of 201 articles published in journals between 2014 and 2021. The results present 13 study categories, showing topics such as pyrolysis, business models, Industry 4.0, and energy generation. The insertion of Industry 4.0 technologies is still in its initial stages, comprising mainly the generation of inputs to reuse waste for 3D printers’ materials. Regarding energy generation, the insertion of processes such as pyrolysis for fuel generation stands out. The proposed discussion in this article suggests a circular ecosystem in which wastes follow a reuse flow according to their properties; incineration can be an option depending on the stage and benefits ge... [more]
41. LAPSE:2023.15663
Ship-Based Carbon Capture and Storage: A Supply Chain Feasibility Study
March 2, 2023 (v1)
Subject: Planning & Scheduling
The International Maritime Organisation (IMO) calls for the maritime industry to restrict its CO2 emissions by −40% (IMO2030) and −70% (IMO2050). This paper answered the following research question: “Which technical, economic and emissions-related conditions predominantly determine the feasibility of a conceptual supply chain of liquid CO2 that is captured from the exhaust gases of LNG powered offshore vessels?” The captured CO2 is transported to land where it is utilized by a final customer. The study followed a systems engineering approach. Problem definition was followed by a requirements analysis (technology, emissions, economy and operations), design with scenarios and a case study with realistic vessel deployment, modeling and evaluation. All designs have technical uncertainties and financial risks, but the sale of captured CO2 could be a crucial advantage of the proposed concept over other concepts. The main conclusion is that emission and financial targets (payback time) can be... [more]
42. LAPSE:2023.14337
Proxy Re-Encryption-Based Traceability and Sharing Mechanism of the Power Material Data in Blockchain Environment
March 1, 2023 (v1)
Subject: Materials
Keywords: blockchain, Hyperledger Fabric, power material, proxy re-encryption (PRE), sharing, Supply Chain, traceability
The need to accelerate the innovation and application of the supply chain has been suggested by the State Council of China. To solve the problem of data isolation caused by privacy protection in the power material supply chain, a data traceability and sharing mechanism based on blockchain is designed in this paper. Firstly, the existing problems of the power material supply chain are introduced, and the applicability of blockchain in the power material supply chain in view of these problems is analyzed. Secondly, blockchain-based power material supply deployment and application structures are proposed. Then, considering the problem of data isolation in the material inspection and distribution links between suppliers and the material company, a data traceability mechanism based on blockchain is designed to provide evidence for the data authenticity and a proxy re-encryption method is used to ensure security and privacy in data sharing. Finally, the effectiveness of the proposed data tra... [more]
43. LAPSE:2023.14132
Environmental Impact Assessment of Different Strategies for the Remanufacturing of User Electronics
March 1, 2023 (v1)
Subject: Environment
Keywords: discrete event simulation, life cycle assessment, remanufacturing, Renewable and Sustainable Energy, Supply Chain
Over the years, the innovation and development of electrical and electronic equipment have been on a steep rise. Millions of electronics are being sold or discarded every year in the form of waste. Sustainable IT (Green IT or Circular Computing) is one of the most environment-friendly methods of reusing discarded or waste user electronics. The remanufacturing of a computer refers to the disassembly, repair, and upgrade of the original computer to give it a new life, along with a warranty that is as good as a new product. The goal of this work includes studying and assessing the total environmental impact of refurbishing a computer using life cycle assessment (LCA) integrated with discrete event simulation (DES), to compare two business models: (1) a case of centralized remanufacturing where the plants are in the Middle East, which is the hub for receiving waste electronics and distributing remanufactured goods; (2) a case of decentralized remanufacturing where the plants are situated i... [more]
44. LAPSE:2023.13367
Mechanical Harvesting of Castor Bean (Ricinus communis L.) with a Combine Harvester Equipped with Two Different Headers: A Comparison of Working Performance
March 1, 2023 (v1)
Subject: Planning & Scheduling
Keywords: castor bean, combine harvester, dehulling, seed loss, Supply Chain, working performance
Castor bean (Ricinus communis L.) is a promising industrial crop suitable for cultivation in marginal conditions in the Mediterranean area, but the mechanical harvesting of the seeds is still usually performed manually. In this manuscript, the authors present a preliminary test to assess the effectiveness of equipping a combine harvester with a sunflower header to mechanically harvest castor beans. Machinery performance, seed loss from impact (ISL) and cleaning systems (CSL), and seed cleaning were evaluated and compared with the results obtained from the same combine harvester equipped with a cereal header. According to the results, no statistically significant difference in CSL was found. Values ranged from 162. 41 kg dry matter (DM) ha−1 in the cereal header to 145.56 kg DM ha−1 in the sunflower header, corresponding, respectively, to 8% w/w and 7% w/w of the potential seed yield (PSY). Using the sunflower header significantly lowered ISL (158.16 kg DM ha−1, i.e., 8% w/w of PSY) in... [more]
45. LAPSE:2023.11641
Optimizing the Design of a Biomass-to-Biofuel Supply Chain Network Using a Decentralized Processing Approach
February 27, 2023 (v1)
Subject: Planning & Scheduling
Keywords: biofuel, Biomass, fast pyrolysis, logistics, miscanthus, mobile, Optimization, Supply Chain
When designing biomass-to-biofuel supply chains, the biomass uncertainty, seasonality and geographical dispersion that affect economic viability need to be considered. This work presents a novel methodology that can optimize the design of biofuel supply chains by adopting a decentralized network structure consisting of a mix of fixed and mobile processing facilities. The model considers a variable biomass yield profile and the mobile fast pyrolysis technology. The mixed-integer linear programming model developed identifies the optimal biofuel production and biomass harvesting schedule schemes under the objective of profit maximization. It was applied in the case study of marginal lands in Scotland, which are assumed to be planted with Miscanthus. The trade-offs observed between economies of scale against the transportation costs, the effect of the relocation costs and the contribution of storage capacity were investigated. The results showed that, in most cases, harvesting is most conc... [more]
46. LAPSE:2023.9515
Sustainable Transition from Fossil Fuel to Geothermal Energy: A Multi-Level Perspective Approach
February 27, 2023 (v1)
Subject: Planning & Scheduling
Keywords: energy transition, geothermal energy, multi-level perspective, Renewable and Sustainable Energy, Supply Chain
Indonesia is currently undergoing the energy transition from heavily fossil fuel-dependent energy to cleaner sources of energy in order to achieve its net-zero emissions by 2060. In addition to reducing fossil fuel dependency, as one of the countries with the most geothermal reserves, the optimization of geothermal energy in Indonesia could be key to facilitating the energy transition. The objective of this paper is to elaborate on the transition process, which incorporates the destabilization of fossil fuel and the growth of geothermal energy, by analyzing the impact of both exogenous and endogenous factors on the supply chain structures of both sectors. This study employs workshop involving geothermal stakeholders in Indonesia, combined with the application of the Multi-Level Perspective (MLP) framework as the theoretical lens. The study found that energy demand, environmental awareness, energy regulations, energy supply chain, and geothermal potential breakthroughs are important asp... [more]
47. LAPSE:2023.9039
Implications of Increasing Fuel Costs for Supply Chain Strategy
February 27, 2023 (v1)
Subject: Planning & Scheduling
Keywords: economic efficiency, Energy, global production, globalization, increase in fuel prices, logistics, production, reallocation of production, strategy, Supply Chain
The supply chain strategy has a significant impact on energy consumption. This strategy determines the location of individual links in the chain (suppliers, producers, distributors), which affects the costs of logistics processes, including, in particular, transport processes. Currently, due to the rapid increase in fuel prices, the issue of energy consumption in the supply chains is becoming increasingly important. The aim of the article is to present the impact of the increase in fuel and energy costs on the costs of logistics processes and, as a result, on the profitability of different supply chain strategies. The profitability of changing from global to local sources of supply as a result of rising energy prices was especially taken into account. The article presents the results of interviews from enterprises carried out by the authors and the results of simulations carried out using a model developed by the authors. The need to conduct such research resulted from the existing res... [more]
48. LAPSE:2023.8648
Supply Chain Readiness for Solar PV Expansion in Saudi Arabia
February 24, 2023 (v1)
Subject: Planning & Scheduling
Keywords: logistics, PV modules, Renewable and Sustainable Energy, Saudi Arabia, solar energy, Supply Chain
The Kingdom of Saudi Arabia (KSA) has an ambitious plan to install 40 GW of solar photovoltaic (PV) capacity via large scale projects (majority of which are >100 MW) across the country by 2030. These projects are required to achieve a threshold percentage of the overall project cost as in country expenditure, termed “local content”. This threshold will rise to 40−45% by 2028, ensuring solar projects do not simply become investment opportunities for overseas companies but deliver jobs and skills development within the Kingdom. Local content is assessed across all aspects of a PV system—module, inverter, structure, etc. Typically, the PV module cost can range between ~34% to ~44% of the overall system cost. However, 56% of this module cost represents the manufacture of the solar cells. To maximise local content, the opportunity for KSA lies in module fabrication of imported solar cells. This study assesses the capacity readiness of the KSA to meet this opportunity in relation to its 2030... [more]
49. LAPSE:2023.6769
Barriers and Drivers for Changes in Circular Business Models in a Textile Recycling Sector: Results of Qualitative Empirical Research
February 24, 2023 (v1)
Subject: Environment
Keywords: circular business model, circular economy, development, environmental awareness, Supply Chain, waste
The growing environmental problems associated with the dumping of large amounts of textile waste and the demand for circular products are prompting textile waste recycling enterprises to develop circular business models (CBMs). This implies a radical change in the way some enterprises operate to obtain growth. Considering the importance of the drivers of and barriers for the adoption and implementation of CBMs in the textile recycling sector, it is claimed that the comprehension of these factors to CBMs is limited and deserves more attention in empirical research. Therefore, our research investigates the antecedents of circular business models in the textile recycling sector by highlighting influencing factors. The aim of the article is to explore the main enhancing and inhibiting factors in the development of circular business models on the example of a large enterprise operating for 30 years in the textile recycling sector. In this study, a case study design of mixed methods, includi... [more]
50. LAPSE:2023.6011
Implementing TRIZ with Supply Chain Management in New Product Development for Small and Medium Enterprises
February 23, 2023 (v1)
Subject: Planning & Scheduling
Keywords: innovative, new product development, product modularity, Renewable and Sustainable Energy, small and medium enterprises, Supply Chain, theory of inventive problem-solving
Due to the impact of globalization, the competition between enterprises has become fierce and led the supply chains of many industries to be reorganized. One of the consequences is that the operation of many small and medium enterprises (SMs) had become very difficult. Hence, many of SMEs in Taiwan have gone bankrupt and some of them have moved to other places where they have lower production costs, in order to survive; this not only hollowed out the industries but also disconnected the supply chains in their mother countries. Because Taiwan’s SMEs are generally poor in innovation, this study explored the implementation of the theory of inventive problem-solving (TRIZ) with alignment of new product development (NPD) and supply chain management (SCM) to strengthen the innovation and productivity of new products, so that SMEs can refer to its use to aid sustainable business operation. We considered an SME in Taiwan as a case to study and investigate the strategies that it employed to ach... [more]
51. LAPSE:2023.5124
Modeling Freight Consolidation in a Make-to-Order Supply Chain: A Simulation Approach
February 23, 2023 (v1)
Subject: Planning & Scheduling
Keywords: Arena, make-to-order, outbound logistics, Simulation, Supply Chain, temporal consolidation
Shipment consolidation is one of main initiatives to reduce CO2 emissions and transportation cost. It reduces the number of shipments per customer and reduces transportation costs by using larger shipments. This paper investigates the temporal consolidation process in a central consolidation center in a make-to-order supply chain. This research was motivated by a case study of a design furniture company that has many suppliers and customers in large parts of Europe. Simulation was used to check the effect of a new and a special time-based temporal consolidation on the response time in outbound logistics. A soft delivery deadline that is less than the average lead time was used because of the long lead time. Arena Software was used to model the supply chain in order to find the best circumstances to use consolidation. Results showed that temporal consolidation could be more effective when order preparation time is with larger variability. The useful waiting is more when there is at leas... [more]
52. LAPSE:2023.4892
Introducing Risk Considerations into the Supply Chain Network Design
February 23, 2023 (v1)
Subject: Planning & Scheduling
Keywords: logistics, Supply Chain, supply chain network design, supply chain risk
Supply chains (SC) aim to provide products to the final customer at a certain service level. However, unforeseen events occur that impede supply chain objectives. SC Risk has been studied in the literature, providing frameworks and methodologies to manage SC failures. Nevertheless, more efforts are needed to prevent hazardous and disruptive risks and their consequences. These risks must be considered during the process of designing a supply chain. Some methodological contributions concerning risk in the supply chain network design (SCND) are conceptual frameworks for mitigating SC disruptions, which suggest strategies and measures for designing robust and resilient SCs. Although such contributions are valuable, they do not indicate how to cope with risk when designing a SC. The main objective of this research is to describe a methodology aimed at including risk considerations into the SCND. Our proposal aims to be, on the one hand, a comprehensive approach that includes a risk identifi... [more]
53. LAPSE:2023.4662
Low-Carbon Collaboration in the Supply Chain under Digital Transformation: An Evolutionary Game-Theoretic Analysis
February 23, 2023 (v1)
Subject: Planning & Scheduling
Keywords: digital transformation, evolutionary game, low-carbon collaboration, Supply Chain, system dynamics
In the face of the challenges posed by the need to drastically decrease carbon emissions, all agents in the supply chain need to strengthen low-carbon collaboration with the support of digital transformation. This study sets up a low-carbon collaboration evolutionary game model of the supply chain based on benefit sharing by introducing digital transformation. The equilibrium-point stability of the supply chain is then analyzed under two separate conditions—i.e., less and more government rewards and punishments compared to supply-chain agents’ strategic risk cost. Furthermore, based on the evolutionary game model, this study draws the system dynamics (SD) flow diagram to analyze the research problem quantitatively. The main results show that: (1) low-carbon benefit-driven effects promotes collaboration benefit sharing, thereby increasing the probability of low-carbon collaboration; (2) digital transformation is an essential regulator of low-carbon collaboration in the supply chain and... [more]
54. LAPSE:2023.4201
Approaching Sustainability Transition in Supply Chains as a Wicked Problem: Systematic Literature Review in Light of the Evolved Double Diamond Design Process Model
February 22, 2023 (v1)
Subject: Planning & Scheduling
Keywords: design thinking, evolved double diamond, framework, Supply Chain, sustainability transition, wicked problem
Transition from the status quo to more sustainable supply chain management (SSCM) practices is a highly complex and non-linear process with multiple drivers, but also obstacles, on the way. The impending strict regulatory framework, particularly in terms of the environmental dimensions of sustainability development (SD), is single-handedly opening the door to rapid and potentially disruptive change. The research literature on SSCM has increased exponentially over the last decade to meet the mounting demand for information on how to tackle often conflicting sustainability-related requirements while satisfying all internal and external stakeholders. Due to the continuously evolving and wicked nature of SSCM, a limited number of scholars have approached the issue with design thinking problem solving methodologies (DTPSMs). The results of a systematic literature review (SLR) were mirrored with the Evolved Double Diamond (EDD) design process model to formulate a design thinking overview and... [more]
55. LAPSE:2023.2577
SMEs in Automotive Supply Chains: A Survey on Six Sigma Performance Perceptions of Czech Supply Chain Members
February 21, 2023 (v1)
Subject: Planning & Scheduling
Keywords: automotive, six sigma, six sigma performance, SME, supplier development, Supply Chain
Six sigma is understood as a technique for the continuous improvement in process quality; however, it has been rarely scientifically analysed in small- and medium-sized enterprises (SMEs). SMEs representthe vast majority of enterprises throughout economies and contribute to automotive supply chains in various tier ranks. As SMEs are known to lack resources and skills while focusing on short-term benefits rather than on long-term gradual improvements, the aim of of this paper is to analyse the perception of six sigma process capabilities in automotive supply chains assuming differences in company size, supply chain rank and six sigma duration. This was tested with Fisher’s exact test. Companies with less than 1000 employees, subsuppliers and companies with a six sigma implementation in the last 3 years struggled to meet six sigma principles, suggesting that mainly small companies inhibit a risk for the supply chain. These findings contribute to the existing theoretical body of knowledge... [more]
56. LAPSE:2023.1151
Workers’ Opinions on Using the Internet of Things to Enhance the Performance of the Olive Oil Industry: A Machine Learning Approach
February 21, 2023 (v1)
Subject: Planning & Scheduling
Keywords: Internet of things, Machine Learning, olive oil industry, performance, Supply Chain
Today’s global food supply chains are highly dispersed and complex. The adoption and effective utilization of information technology are likely to increase the efficiency of companies. Because of the broad variety of sensors that are currently accessible, the possibilities for Internet of Things (IoT) applications in the olive oil industry are almost limitless. Although previous studies have investigated the impact of the IoT on the performance of industries, this issue has yet to be explored in the olive oil industry. In this study we aimed to develop a new model to investigate the factors influencing supply chain improvement in olive oil companies. The model was used to evaluate the relationship between supply chain improvement and olive oil companies’ performance. Demand planning, manufacturing, transportation, customer service, warehousing, and inventory management were the main factors incorporated into the proposed model. Self-organizing map (SOM) clustering and decision trees we... [more]
57. LAPSE:2023.0815
Real-Time Temperature and Humidity Measurements during the Short-Range Distribution of Perishable Food Products as a Tool for Supply-Chain Energy Improvements
February 21, 2023 (v1)
Subject: Food & Agricultural Processes
Keywords: food preservation, food quality, food waste, humidity, intelligent packaging, Supply Chain, temperature, transportation
Food waste results in an increased need for production to compensate for losses. Increased production is directly related to an increase in the environmental impact of agriculture and in the energy needs associated with it. To reduce food waste, the supply chain should maintain ideal preservation conditions. In horticultural products, temperature, and relative humidity are two of the main parameters to be controlled. Monitoring these parameters can help decision-making in logistics and routes management, as well as to diagnose and timely prevent food losses. In the present work, eighteen wireless traceability devices with temperature and relative humidity sensors monitored crates with horticultural products along a short-range distribution route with five stops (4 h 30 m). Sensor data and a location tag were sent via GSM for real-time monitoring. The results showed fluctuations in temperature and relative humidity that reached up to 7.4 °C and 35.3%, respectively. These fluctuations ha... [more]
58. LAPSE:2022.0009
Algorithmic Approaches to Inventory Management Optimization
January 24, 2022 (v1)
Subject: Planning & Scheduling
Keywords: inventory management, multi-echelon, reinforcement learning, stochastic programming, Supply Chain
An inventory management problem is addressed for a make-to-order supply chain that has inventory holding and/or manufacturing locations at each node. The lead times between nodes and production capacity limits are heterogeneous across the network. This study focuses on a single product, a multi-period centralized system in which a retailer is subject to an uncertain stationary consumer demand at each time period. Two sales scenarios are considered for any unfulfilled demand: backlogging or lost sales. The daily inventory replenishment requests from immediate suppliers throughout the network are modeled and optimized using three different approaches: (1) deterministic linear programming, (2) multi-stage stochastic linear programming, and (3) reinforcement learning. The performance of the three methods is compared and contrasted in terms of profit (reward), service level, and inventory profiles throughout the supply chain. The proposed optimization strategies are tested in a stochastic s... [more]
59. LAPSE:2020.0822
Supply Chain Monitoring Using Principal Component Analysis
July 16, 2020 (v1)
Subject: Process Monitoring
Keywords: monitoring, Multivariate Statistics, Supply Chain
Various types of risks exist in a supply chain, and disruptions could lead to economic loss or even breakdown of a supply chain without an effective mitigation strategy. The ability to detect disruptions early can help improve the resilience of the supply chain. In this paper, the application of principal component analysis (PCA) and dynamic PCA (DPCA) in fault detection and diagnosis of a supply chain system is investigated. In order to monitor the supply chain, data such as inventory levels, market demands and amount of products in transit are collected. PCA and DPCA are used to model the normal operating conditions (NOC). Two monitoring statistics, the Hotelling's T-squared and the squared prediction error (SPE), are used to detect abnormal operation of the supply chain. The confidence limits of these two statistics are estimated from the training data based on the $\chi^2$- distributions. The contribution plots are used to identify the variables with abnormal behavior when at le... [more]
60. LAPSE:2020.0846
Assessing Supply Chain Risks in the Automotive Industry through a Modified MCDM-Based FMECA
July 17, 2020 (v1)
Subject: Process Operations
Keywords: AHP, criticality and risk analysis, FMECA, fuzzy DEMATEL, Supply Chain, systems engineering
Supply chains are complex networks that receive assiduous attention in the literature. Like any complex network, a supply chain is subject to a wide variety of risks that can result in significant economic losses and negative impacts in terms of image and prestige for companies. In circumstances of aggressive competition among companies, effective management of supply chain risks (SCRs) is crucial, and is currently a very active field of research. Failure Mode, Effects and Criticality Analysis (FMECA) has been recently extended to SCR identification and prioritization, aiming at reducing potential losses caused by lack of risk control. This article has a twofold objective. First, SCR assessment is investigated, and a comprehensive list of specific risks related to the automotive industry is compiled to extend the set of most commonly considered risks. Second, an alternative way of calculating the Risk Priority Number (RPN) is proposed within the FMECA framework by means of an integrate... [more]
61. LAPSE:2019.0523
Revolution 4.0: Industry vs. Agriculture in a Future Development for SMEs
April 15, 2019 (v1)
Subject: Energy Policy
Keywords: agriculture 4.0, application research, Industry 4.0, open source, SMEs, Supply Chain
The present review retraces the steps of the industrial and agriculture revolution that have taken place up to the present day, giving ideas and considerations for the future. This paper analyses the specific challenges facing agriculture along the farming supply chain to permit the operative implementation of Industry 4.0 guidelines. The subsequent scientific value is an investigation of how Industry 4.0 approaches can be improved and be pertinent to the agricultural sector. However, industry is progressing at a much faster rate than agriculture. In fact, already today experts talk about Industry 5.0. On the other hand, the 4.0 revolution in agriculture is still limited to a few innovative firms. For this reason, this work deals with how technological development affects different sectors (industry and agriculture) in different ways. In this innovative background, despite the advantages of industry or agriculture 4.0 for large enterprises, small- and medium-sized enterprises (SMEs) of... [more]
62. LAPSE:2018.1150
A Stackelberg Game Theoretic Analysis of Incentive Effects under Perceived Risk for China’s Straw-Based Power Plant Supply Chain
November 28, 2018 (v1)
Subject: Energy Management
Keywords: biomass power plant, perceived risk, stackelberg game theory, Supply Chain
The rapid expansion of the biomass power generation industry has resulted in the conversion of substantial agricultural waste (crop straw) into energy feedstock, thereby increasing the income of farmers and promoting the development of rural areas. However, the promising industry faces financial deficits because of difficulties in collecting straw from farmers. To determine strategies for overcoming the biomass supply problem, we apply Stackelberg game theory in modeling the Chinese biomass supply chain and design incentive scenarios under stakeholder risk perception. We illustrate the proposed methodology through an empirical case study on China and demonstrate the effects of incentives on farmers and middlemen. Results show that with incentives, straw quantity and stakeholder profit are expected to increase. Incentives exert a particularly remarkable effect on farmers, with such inducements producing the highest social welfare. Moreover, perceived risk dramatically affects stakeholde... [more]