Highlights Explore the impacts of carbon footprint tax on fashion quick response (QR) sourcing system. How to use carbon footprint tax to entice local sourcing under QR in fashion. Investigate both the single-ordering and dual-ordering QR systems. Develop analytical conditions to yield mean-risk improvement for the local sourcing option.

    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.


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    Titel :

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


    Beteiligte:


    Erscheinungsdatum :

    2013-01-12


    Format / Umfang :

    12 pages




    Medientyp :

    Aufsatz (Zeitschrift)


    Format :

    Elektronische Ressource


    Sprache :

    Englisch