Green supply chain game model and analysis under revenue-sharing contract

Song, Huihui; Xue-xian, Gao

doi:10.1016/j.jclepro.2017.09.138

Cited by 296 publications

(185 citation statements)

References 25 publications

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“…Hong and Guo [8] compared the environmental performance resulting from the green-marketing cost-sharing contract and two-part tariff contract. Song and Gao [46] quantitatively analyzed the impact of the revenue-sharing contract on the internal membership decision variables and designed a new contract that can effectively improve the overall profit of the supply chain. Considering channel disruption, Aslani and Heydari [47] proposed a transshipment contract to coordinate the enterprises in the supply chain which guarantees the profitability of each player.…”

Section: Supply Chain Coordinationmentioning

confidence: 99%

Joint Emission Reduction Strategy in Green Supply Chain under Environmental Regulation

2020

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Under the threat of global warming, joint emission reduction strategy has been widely adopted as an effective solution for the industry to guarantee environmental sustainability. In the practice of supply chain, environmental regulations and supply chain contracts are applied with the attempt to improve environmental performance. However, whether these measures are actually effective remains unanswered. In this paper, we study a supply chain with one manufacturer and one retailer adopting joint emission reduction strategy. We first investigate under what circumstance the environmental regulation can effectively result in higher emission reduction efforts. The result shows that when the cost coefficient satisfies certain conditions, the increase of penalty or subsidy can lead to more investment in emission reduction. In addition, if the environmental impact caused by the production process is extremely high, the enforcement of the regulation is ineffective. We also explore how the cost-revenue-sharing contract affects the emission reduction strategy and the coordination of the members in the supply chain. The results suggest that the incentive effect of environmental regulation is more effective when the supply chain coordination contract exists. Numerical experiments are also presented to verify our analytical conclusions.

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Section: Supply Chain Coordinationmentioning

confidence: 99%

Joint Emission Reduction Strategy in Green Supply Chain under Environmental Regulation

2020

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“…At present, a number of studies are investigating the influence of environmental concerns in supply chain management, such as those by Beske-Jannsen et al [28] and Sancha et al [29]. However, current green supply chain research has mainly focused on case studies, questionnaires, and other types of qualitative research but has been less involved in quantitative research [30].…”

Section: Literature Reviewmentioning

confidence: 99%

“…Referring to Song and Gao [30], we studied a secondary green supply chain model consisting of a manufacturer who considers both environmental and profit-based objectives and a retailer who only considers profits. To improve the greening level, manufacturers invest in green raw materials for technological innovation to produce green products and sell them to retailers at a price of w. Then, retailers sell green products to consumers at a price of p. This study makes the following assumptions, and the parameters and meanings are listed in Table 1:…”

Section: Model Hypothesesmentioning

confidence: 99%

A Multi-Objective Optimization Model for Green Supply Chain Considering Environmental Benefits

et al. 2019

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Whether the upstream and downstream members in a supply chain (considering environmental objectives) simultaneously stabilize economic benefits has become an important problem in the process of green development. However, few quantitative studies on green supply chains have considered environmental and economic benefits to realize multi-objective optimization. To study operation and cooperation strategies with a consideration of the different objective on the level of supply chain, we first establish a green supply chain game model with profit and environment objectives simultaneously considered by the manufacturer. Then, we analyze the multi-objective decisions of the supply chain members under centralized control using a manufacturer-led Stackelberg game and revenue-sharing contract. Using the manufacturer's environmental preference as a variable, the effects of environmental benefits on the supply chain are also investigated. Finally, this study determines that the manufacturer's profit will be reduced after considering the objective of environmental benefits, while the retailer's profit, product greenness, and environmental benefits will be improved. Meanwhile, the total profit of the green supply chain will first increase and then decrease. In particular, a revenue-sharing contract can facilitate the coordination of multiple objectives; in this way, both the manufacturer and the retailer achieve higher profits and environmental benefits compared to a decentralized control condition, which is of great significance in achieving a win-win situation for the economy and the environment.

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“…Their results show that the greening cost sharing contract, in which the retailer shares a part of the R&D cost of the manufacturer, which will provide the manufacturer with incentive for greener product, can coordinate the supply chain. Song and Gao [44] investigate the effect of revenue sharing contract on the decisions and performances of the green supply chain. The authors show that the green level and the profit of the supply chain are both improved under a re..venue sharing contract.…”

Section: Literature Reviewmentioning

confidence: 99%

Supply Chain Coordination in the Context of Green Marketing Efforts and Capacity Expansion

Chang

2019

Sustainability

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This paper focuses on coordination issues related to the green supply chain with capacity constraints and green marketing efforts. We build a two-stage green supply chain, in which the upstream manufacturer has a certain amount of installed capacity to produce green product, yet can expand its capacity through a Cloud Manufacturing (CM) Platform once its existing capacity becomes insufficient, while the downstream retailer expends green marketing effort to promote the green product. In particular, we analyze the interaction between the capacity expansion options of the manufacturer and the green marketing efforts of the retailer. Aiming to mitigate the inefficiency under a decentralized green supply chain, we design a contract that combines cost-sharing and revenue-sharing in green marketing in order to coordinate the supply chain. The results show that:(1) when the manufacturer's existing capacity falls below a certain threshold, it will choose to expand its capacity. The threshold is related to existing capacity, capacity expansion cost coefficient, green marketing cost coefficient, and sensitivity coefficient of demand to green marketing. (2) Under low capacity, if the capacity expansion cost coefficient is large, a higher consumer environmental awareness or preference for green products will weaken the retailer's motivation for expending green effort. (3) A contract for cost-sharing and revenue-sharing in green marketing can fully coordinate the green supply chain, whereby the two share proportions are equal and meet certain constraints.

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Green supply chain game model and analysis under revenue-sharing contract

Cited by 296 publications

References 25 publications

Joint Emission Reduction Strategy in Green Supply Chain under Environmental Regulation

Joint Emission Reduction Strategy in Green Supply Chain under Environmental Regulation

A Multi-Objective Optimization Model for Green Supply Chain Considering Environmental Benefits

Supply Chain Coordination in the Context of Green Marketing Efforts and Capacity Expansion

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