Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/21063
Title: Local sourcing and fashion quick response system : the impacts of carbon footprint tax
Authors: Choi, TM 
Keywords: Carbon footprint tax
Local sourcing
Quick response system
Sustainability
Issue Date: 2013
Publisher: Pergamon Press
Source: Transportation research. Part E, Logistics and transportation review, 2013, v. 55, p. 43-54 How to cite?
Journal: Transportation research. Part E, Logistics and transportation review 
Abstract: 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, we illustrate how the carbon footprint taxation scheme affects the optimal choice of sourcing decision. Our 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.
URI: http://hdl.handle.net/10397/21063
ISSN: 1366-5545
EISSN: 1878-5794
DOI: 10.1016/j.tre.2013.03.006
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