Information sharing in a green supply chain with promotional effort

Abstract

Purpose The purpose of this paper is to investigate the retailer’s strategy of information sharing in a green supply chain with promotional effort, and the impact of information sharing on the decisions and profits of the manufacturer and the retailer. Design/methodology/approach The developed models aim to maximize the profits of the manufacturer, the retailer and the green supply chain system. The game theory is used to obtain the equilibrium solutions of both the manufacturer and the retailer. A two-part compensation (TPC) contract is designed to motivate the retailer to share information with the retailer. Numerical examples are used to show the impact of parameters on decisions by Matlab 2014. Findings The results show that the green degree increases while the promotional effort level decreases when the manufacturer receives the larger demand information from the retailer; information sharing leads to a profit increase to the manufacturer and a profit loss to the retailer, but can increase the profit of supply chain under a certain condition; information sharing reduces the expected consumer surplus. The TPC contract designed in this paper can not only motivate the retailer to share information but also increases the consumer surplus. Research limitations/implications The study has been done in a monopoly environment where only a retailer can forecast demand information. It is an interesting direction of future research when considering there are more retailers who can forecast such information in a supply chain. Originality/value There exist two main aspects that are different from the existing literature. The stochastic demand function related to the retail price, the green degree and the promotional effort have never appeared in previous literature. This paper considers a green product supply chain with a manufacturer who produces green products and a retailer who has an information advantage because of her promotional effort; this paper investigates the impact of information sharing on the consumer surplus and designs a contract to coordinate the green supply chain.

Mapping and Assessing Green Entrepreneurial Performance: Evidence from a Vertically Integrated Organic Beverages Supply Chain

“…The literature is divided into the following four main interrelated parts (as depicted by the author in Figure 1): The integration between the two research fields of green production and operations management (GPOM) (Afum et al, 2020; Baines et al, 2012; Digalwar et al, 2013; Heidrich & Tiwary, 2013) and SCM resulted in GSCM studies. Various researchers (Abdullah, 2016; Agyabeng-Mensah et al, 2020; Ali et al, 2020; Bag et al, 2020; Ding & Wang, 2020; Lou et al, 2020; Taleizadeh et al, 2020) studied GSCM strategy and its cross-functional practices. The interaction between GPOM and entrepreneurship research areas generated the green entrepreneurship (GE) research interest. Some studies (Braun, 2010; Demirel et al, 2019; Gibbs & O’Neill, 2012; Haldar, 2019; Lin & Chen, 2018; Schaper, 2016) discussed the importance of having green entrepreneurs or eco-entrepreneurs, in which the performance of their individual companies can be characterised by being proactive, innovative, risk-taker and environment-friendly.…”

“…The integration between the two research fields of green production and operations management (GPOM) (Afum et al, 2020; Baines et al, 2012; Digalwar et al, 2013; Heidrich & Tiwary, 2013) and SCM resulted in GSCM studies. Various researchers (Abdullah, 2016; Agyabeng-Mensah et al, 2020; Ali et al, 2020; Bag et al, 2020; Ding & Wang, 2020; Lou et al, 2020; Taleizadeh et al, 2020) studied GSCM strategy and its cross-functional practices.…”

Advertising strategy and contract coordination for a supply chain system: immediate and delayed effects

“…Subsequently, the advertising costs are monotonic and convex in advertising efforts, i.e.Where, ki (i=M,R) is the advertising cost coefficient. The quadratic cost functions here capture the diminishing returns of efforts, which are widely mentioned in the related literature such as He et al (2013), Xu et al (2019), Machowska (2019), Ding and Wang (2020).…”

Wholesale-price vs cost-sharing contracts in a green supply chain with reference price effect under different power structures

“…Nowadays, ever-growing consumer environmental awareness (Ding and Wang, 2020) has become a crucial market driver (Dong et al, 2019) for enterprises to develop and market green products (Liu et al, 2020). For example, a well-known fast fashion retailer, H&M, has adopted sustainable practices by offering customers a discount in exchange for old clothing and Wholesaleprice vs cost-sharing contracts applying emission-reduction technologies in its production process (Mccall, 2015).…”