Green Television Supply Chain Under Capital Constraint for Achieving Environmental Sustainability

In recent years, the environment has become a hot topic among the government, society, and enterprises due to global warming, ozone depletion, and air pollution. Businesses are believed to be at the root of most environmental problems. To reduce environmental pollution and promote sustainable development, more and more TV manufacturers are adopting a green supply chain to achieve sustainable development and produce more environmentally friendly television (TV) sets. However, some green TV manufacturers are underfunded in the development and production process. In this paper, a green TV supply chain system composed of a financially constrained manufacturer and a reputable retailer is proposed to help the TV manufacturer successfully produce more green TVs. The supply chain model is established by using two financing tools. A time-dependent residual value is considered in the model, and the later the clearance time, the lower the residual value. We investigate the effects of time-dependent residual value on operational and financing decisions and measure the supply chain system’s profit risks. The following results are concluded: (1) The clearance time of unsold TV sets affects the retailer’s and the manufacturer’s decisions. (2) The financing equilibrium can be obtained under certain conditions. (3) The profit risks of the retailer increase with the order quantity and the clearance time. Numerical analysis is used to verify the derived results.