Effects of green innovation and advertisement in an imperfect production‐based competitive supply chain under two‐tier credit facility

Abstract

This article investigates game-theoretic approaches in a competitive supply chain model with imperfect production and a two-tier credit facility under the environment of carbon emissions. In this environment, we incorporate a manufacturer and two rival retailers who compete against one another for selling price and advertisement of a product, where the members offer trade credit facilities to the downstream players. We consider that the manufacturer invests in green technology to curtail the emission during the production and rework process. The retailers provide advertisements to expand their businesses, where market demands are dependent on their selling prices, advertisement frequencies, and the green innovation level. Here, we analyze the model under the cap-and-trade policy for various subcases of the centralized and decentralized systems and discuss a solution algorithm for the optimal results. For the practical feasibility test of the model, numerical analysis is examined, and the impact of variations of the critical parameters is studied. The study's primary motive is to figure out the optimal operative strategies and collaborative actions on the decision variables, which leads to the profits of the supply chain to a lofty extent. We observe that the offered credit periods are highly responsive to the profit functions so that the chain members have to be more careful and draw a compact plan for credit policy. Moreover, the manufacturer has to invest in green technology up to a certain level, as, after that level, high investment costs will hamper the optimal profit. Besides, the retailers must have adequate policies for selling prices and advertisement frequencies to acquire a higher yield.

Green Human Resource Management and Sustainable Performance With the Mediating Role of Green Innovation: A Perspective of New Technological Era

“…This point is emphasized by Farza et al (2021), who suggest that corporations can achieve a number of social objectives such as customer protection, market transparency, and environmental conservation. GI can, therefore, contribute to SP when organizations integrate it into their business operations (Gul, et al, 2021b;Mandal & Pal, 2021).…”

Industrial Coagglomeration, Green Innovation, and Manufacturing Carbon Emissions: Coagglomeration’s Dynamic Evolution Perspective

“…As for the connection between green innovation and manufacturing carbon emissions, on the one hand, green innovation can promote the improvement and application of clean energy, green technology, and energy-saving equipment, which helps to lower manufacturing carbon emissions from the source and production process. Studies by Lee and Min [ 32 ], Lu et al [ 15 ], Mandal and Pal [ 33 ], and Zhu et al [ 34 ] all support that green innovation aids in decreasing carbon emissions. On the other hand, some research also demonstrates that innovation is not always helpful for manufacturing carbon emission abatement [ 35 ].…”

Robust design of a green-responsive closed-loop supply chain network for the ventilator device

“…The authors selected Coco-Cola Company as a case study to show the validity of their study. Mandal and Pal ( 2021 ) studied a game-theoretic method in a competitive SC considering a two-tier credit facility and imperfect production. It should be noted that the authors investigated the research problem under the environment of carbon emissions in which a manufacturer and two rival retailers compete with each other.…”