Optimal decisions and channel coordination of a green supply chain with marketing effort and fairness concerns

This paper addresses the optimal decisions and channel coordination issues in a green supply chain composed of a socially responsible manufacturer and a fair-mined retailer, where the manufacturer invests in advanced facilities/technologies to improve green quality of products, and the retailer exer...

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Bibliographic Details
Published inApplied mathematics and nonlinear sciences Vol. 8; no. 2; pp. 909 - 926
Main Authors Huang, Fuyou, Xiong, Dan, Ma, Chao
Format Journal Article
LanguageEnglish
Published Sciendo 01.07.2023
Subjects
90B50
Channel coordination
Fairness concerns
Green supply chain
Marketing effort
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Summary:This paper addresses the optimal decisions and channel coordination issues in a green supply chain composed of a socially responsible manufacturer and a fair-mined retailer, where the manufacturer invests in advanced facilities/technologies to improve green quality of products, and the retailer exerts marketing effort to enhance market demand. We develop supply chain models under three scenarios: centralized system, wholesale price (WP) contract without fairness concerns, and WP contract with fairness concerns. Our results show that the retailer’s fairness behavior further causes a benefit for herself, while the manufacturer and the total supply chain to suffer. Moreover, a revenue-cost-sharing (RCS) contract is introduced to coordinate supply chain . We prove that a win-win outcome is reachable, and the RCS contract is applicable in practice.
ISSN:2444-8656
2444-8656
DOI:10.2478/amns.2022.1.00100