Operation Decision On Offshore Outsourcing Of Green Contract Supply Chain And Tariff Impact Analysis

Offshoring has unique advantages in reducing costs and improving product quality.More and more enterprises begin to establish offshoring production and operation network.As a green contract manufacturing supply chain of offshoring with transnational characteristics,it is of great practical significance to study how to choose offshoring mode.In addition,the production and operation of offshoring also has uncertainties such as international trade risks,which has brought great interference to the decision-making of offshoring operation mode of green contract manufacturing supply chain.In this context,this thesis constructs a supply chain network for offshore outsourcing green contract manufacturing with a two-stage manufacturing process,including a purchaser located in the importing country and two contract manufacturers located in the exporting country.The purchaser acts as the principal and entrusts two contract manufacturers in the exporting country to produce a certain product through sequential processing.Consider three ODM and three OEM outsourcing modes for purchaser:(1)ODM mode I: upstream first-tier contract manufacturers conduct green technology research and development,that is first-tier contract manufacturers act as green production ODM manufacturers;(2)ODM mode II:downstream secondary contract manufacturer conduct green technology research and development,that is secondary contract manufacturer act as green production ODM manufacturer;(3)ODM mode III: Two contract manufacturers conduct green technology research and development at the same time,that is,both contract manufacturers act as green production ODM manufacturers,working together to enhance the green degree of the entire supply chain;(4)OEM mode I: As a green production OEM manufacturer,a Tier 1 contract manufacturer located upstream uses the green technology provided by the purchaser to carry out green emission reduction OEM business;(5)OEM mode II: As a green production OEM manufacturer,a downstream secondary contract manufacturer uses green technology provided by the purchaser to carry out green emission reduction OEM business;(6)OEM mode III:Both contract manufacturers act as green production OEMs,using green technology provided by purchaser to work together to enhance the green degree of the entire supply chain.By constructing a supply chain game model,this thesis analyzes the profit of supply chain members,product greenness,and product pricing under different offshore outsourcing modes,and compares the advantages and disadvantages of different offshore outsourcing modes.Then,it further considers the tariff risk and studies the impact of imposing tariffs on offshore outsourcing operation decisions.The main research conclusions of this article are as follows:(1)In the case of only a single green production ODM manufacturer,from the perspective of improving price competitiveness,improving consumer surplus and social welfare,maximizing their own profits,improving the green degree of products,energy conservation and emission reduction,and reducing environmental pollution,the ODM mode II for downstream contract manufacturer to conduct green technology research and development is the dominant strategy of purchaser.However,this offshore outsourcing model has low risk resistance and supply chain resilience under tariff shocks.(2)In the case of multiple green production ODM manufacturers,the product pricing,balanced profits,product greenness,and emission reduction levels of supply chain members at all levels of ODM mode III are higher than those of ODM mode I and ODM mode II,which means that both contract manufacturers can achieve higher supply chain performance when they act as ODM manufacturers and jointly develop green technologies.However,under the impact of tariffs,the ODM mode III supply chain has the lowest risk resistance capacity,and there is a phenomenon of "free riding" between contract manufacturers.(3)Unlike the ODM outsourcing operation mode,under the OEM mode,no matter which contract manufacturer conducts green production,it will not have an impact on the balanced profits,product greenness,and emission reduction level of each member of the supply chain.In addition,although both contract manufacturers no longer conduct green technology research and development under the OEM model,they can still "hitch a ride" from the efforts of purchaser to independently develop green technology.(4)In the case of multiple green production OEM manufacturers,when two contract manufacturers conduct green production activities at the same time,all supply chain members’ profits and product greenness are higher than that of one contract manufacturer alone in green production.That is,OEM outsourcing mode III is a dominant strategy that benefits both the purchaser and the entire supply chain.However,when tariffs are imposed,the dominant space of this mode will be compressed,and there is a threshold value.When tariffs exceed the threshold value,OEM outsourcing modes I and II are more advantageous.Due to the different geographical advantages of different countries,offshore outsourcing cross-border supply chains have developed rapidly since the global economic integration.This thesis studies the offshore outsourcing operation decision-making of green multinational contract manufacturing supply chain in the context of green and low-carbon production,and based on the above research conclusions,puts forward suggestions on how to choose the offshore outsourcing mode for purchaser in different situations.