Local sourcing and fashion quick response system: The impacts of carbon footprint tax

Quick response (QR) system is a well-established industrial practice in fashion apparel. It aims at enhancing inventory management by reducing lead time. In addition to employing a faster delivery mode, QR can be achieved by local sourcing (instead of offshore sourcing). This paper analytically studies how a properly designed carbon footprint taxation scheme can be imposed on a QR system to enhance environmental sustainability via employing a local manufacturer by offsetting the probable higher total logistics and production costs. By examining both the single-ordering and the dual-ordering QR systems, the authors illustrate how the carbon footprint taxation scheme affects the optimal choice of sourcing decision. The authors' analytical findings reveal that a properly designed carbon footprint taxation scheme by governing body not only can successfully entice the fashion retailer to source from a local manufacturer, but it can also lead to a lower level of risk for the fashion retailer. A mean-risk improving scenario hence results and it provides a significant incentive to convince the fashion retailer to support the idea of joining QR when the carbon footprint tax is in place.

• Record URL:
  https://doi.org/10.1016/j.tre.2013.03.006
• Record URL:
  http://www.sciencedirect.com/science/article/pii/S1366554513000562
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/13665545
• Supplemental Notes:
  • Abstract reprinted with permission from Elsevier.
• Authors:
  • Choi, Tsan-Ming
• Publication Date: 2013-8

Language

• English

Media Info

• Media Type: Print
• Features: References; Tables;
• Pagination: pp 43-54
• Serial:
  • Transportation Research Part E: Logistics and Transportation Review
  • Volume: 55
  • Issue Number: 0
  • Publisher: Elsevier
  • ISSN: 1366-5545
  • Serial URL: http://www.sciencedirect.com/science/journal/13665545

Subject/Index Terms

• TRT Terms: Business practices; Costs; Environmental impacts; Greenhouse gases; Inventory control; Retail trade; Suppliers; Supply chain management; Sustainable development; Taxation; Textile industry
• Subject Areas: Administration and Management; Environment; Freight Transportation; I10: Economics and Administration; I15: Environment;

Filing Info

• Accession Number: 01487429
• Record Type: Publication
• Files: TRIS
• Created Date: Jul 2 2013 11:41AM