Effect of Solar Energy Price Reduction on Supply Chain Performance and Contract Design
Abstract
Over the past ten years, global electricity generation has been dominated by fossil fuel sources, particularly coal. With concerns of large pollution emissions from coal-fired power plants increasing, and a general increased... [ view full abstract ]
Over the past ten years, global electricity generation has been dominated by fossil fuel sources, particularly coal. With concerns of large pollution emissions from coal-fired power plants increasing, and a general increased commitment to green energy, solar power has begun to surge worldwide. However, while the production of solar PV panels has risen greatly globally, there has been a sharp reduction in the price of solar PV panels, which has created a challenging issue for PV manufacturers and installers due to the quick change in the market. To have a deeper understanding of the PV supply chain, this research models the strategies for one manufacturer, one installer and one customer in one supply chain setting. Using the inventory model with stochastic demand, this research aims to (1) characterize the manufacturer's and PV assembler's optimal ordering and production decisions in decentralized and centralized situations; (2) conduct sensitivity analysis by simulating the supply chain performance with different parameter settings; and, (3) provide guidance on supply chain contract design.
Authors
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Charles Xiong
(University of North Carolina at Pembroke)
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Xiangrong Liu
(Bridgewater State University)
Topic Area
Topics: Operations, Logistics, and Supply Chain Management - click here when done
Session
OM1 » Supply Chain Issues (08:30 - Thursday, 5th October, West B)
Paper
SE_Informs_Proposal_Solar.pdf
Presentation Files
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