Channel coordination of a two-echelon sustainable supply chain with a fair-minded retailer under cap-and-trade regulation

Qian, Xin; Chan, Felix T. S.; Zhang, Jiahua; Yin, Mingqiang; Zhang, Qingyu

doi:10.1016/j.jclepro.2019.118715

Cited by 86 publications

(54 citation statements)

References 73 publications

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“…In what follows, we use the centralized system to establish a performance benchmark. In the centralized case, the manufacturer and the retailer would jointly operate as one decisionmaker to decide the energy-saving level e I and the retail price p I to maximize the system-wide expected profit, which aligns with the extant literature [21,32]. Let Ep I sc denote the expected profit of the centralized supply chain, we have…”

Section: Problem Description and Performance Benchmarkmentioning

confidence: 73%

“…The fair-minded retailer would decrease its utility, since the profit derived from the total supply chain could be less than that of the manufacturers [19]. In fact, the seminal work on supply chain management with fairness concern is introduced in a conventional two-echelon supply chain by Cui et al [19], and this study is subsequently extended in different scenarios such as closed-loop supply chains [30], dual-channel supply chains [31] and sustainable/green supply chains [32,33]. In sustainable/green supply chains, Zhou et al [34] examined how the co-op advertising contract and the co-op advertising/emission reduction cost sharing contracts impact the low-carbon supply chain's optimal decisions and coordination, and discussed how the optimal decisions and coordination change when a retailer has fairness concern.…”

Section: Plos Onementioning

confidence: 99%

“…k is the coefficient of energy-saving investment, which represents the impact of energy-saving on cost. It is common to use the form of quadratic function to describe the quantitative relationship between the environmental improvement and the corresponding expenditure in existing literature [15,28,32].…”

Section: Problem Description and Performance Benchmarkmentioning

confidence: 99%

“…In particular, the formulation of fairness would narrow down the profit gap between the manufacturer and retailer [46]. Following the literature [19,30,32], the utility function of the retailer with fairness concern can be expressed as follows…”

Section: Decentralized Decision-making Modelmentioning

confidence: 99%

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Energy-saving and pricing decisions in a sustainable supply chain considering behavioral concerns

et al. 2020

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With the rising environmental concerns among consumers all over the world, sustainability has received considerable attention, and numerous enterprises are adopting various practices such as investing in energy-saving to improve sustainability in supply chains. However, many previous researches always assume that decision makers are perfectly rational and neglect the behavioral concerns of decision makers. This paper considers a two-stage sustainable supply chain with behavioral concerns in order to develop more realistic models, and mainly focuses on the energy-saving and pricing decisions in the decentralized system, as well as how to improve energy-saving level and profits. We develop decentralized decision-making models under two types of behavioral concerns: fairness concern and risk aversion, and derive the optimal strategy for each member with a Stackelberg game in which the manufacturer acts as the leader. The effect of the behavioral concerns on the optimal decisions and corresponding profits is discussed in detail. Theoretical analysis verified by numerical experiments shows that the fairness behavior always causes a negative effect on the manufacturer, total supply chain, and energy conservation, while it could benefit the retailer in profits. The risk aversion behavior always benefits the manufacturer, total supply chain, and energy conservation, whereas it could make the retailer suffer. Note that both the optimal energy-saving level and corresponding profit of the total supply chain under two types of behavioral concerns are lower than that in the centralized system, thereby we propose a revenue-cost-sharing contract to coordinate the supply chain, under which both the manufacturer and the retailer can achieve a win-win outcome and the energy-saving level can be improved. In addition, some managerial implications through our analytical and numerical results are summarized in this paper.

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Section: Problem Description and Performance Benchmarkmentioning

confidence: 73%

Section: Plos Onementioning

confidence: 99%

Section: Problem Description and Performance Benchmarkmentioning

confidence: 99%

Section: Decentralized Decision-making Modelmentioning

confidence: 99%

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Energy-saving and pricing decisions in a sustainable supply chain considering behavioral concerns

et al. 2020

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“…In recent decades, most studies focusing on CLSC have been developed from the perspective of static category [4,5,[27][28][29][30], but due to the inherent dynamic characteristics of the recycling process, it is worth pointing out that it is a consensus of the theoretical community to use the optimal control theory and differential game theory to study the CLSC [4,[6][7][8]. Most of the researches on the existing dynamic closed-loop supply chain management focus on optimal decision-making problems of enterprises [7,31,32], recycling channel selection [33], contract mechanism designing [6,7] and the influence of member behavior on decision-making and performance of CSLC [34,35].…”

Section: Introductionmentioning

confidence: 99%

Research on Collaborative Management Strategies of Closed-Loop Supply Chain under the Influence of Big-Data Marketing and Reference Price Effect

2020

Sustainability

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This paper integrates the Internet service platform with big-data marketing into the dynamic closed-loop supply chain system as an independent game subject. Considering the reference price effect of consumers, this work constructs differential games among manufacturer, retailer and Internet service platform under three business models of independent, collaborative production and collaborative marketing. Using Bellman’s continuous dynamic programming theory, this work obtains the optimal feedback strategies of price and big-data marketing effort, brand goodwill, return rate of used products and corporate profits under the three business models. Comparing the three scenarios and analyzing the sensitivity of key exogenous parameters, it can be found that the involvement of Internet service platform has a crucial impact on the sustainable profitability of supply chain enterprises. Considering the reference price effect of consumers, enterprises should adopt different strategic alliances in different periods, which can also gain new development momentum in the context of data-driven marketing, achieve the improvement of the triple-bottom line of closed-loop supply chain and even reach a win-win situation for supply chain enterprises.

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The effects of cap-and-trade regulation and sales effort on supply chain coordination

Yang²,

Ji³

2023

Ann Oper Res

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Channel coordination of a two-echelon sustainable supply chain with a fair-minded retailer under cap-and-trade regulation

Cited by 86 publications

References 73 publications

Energy-saving and pricing decisions in a sustainable supply chain considering behavioral concerns

Energy-saving and pricing decisions in a sustainable supply chain considering behavioral concerns

Research on Collaborative Management Strategies of Closed-Loop Supply Chain under the Influence of Big-Data Marketing and Reference Price Effect

The effects of cap-and-trade regulation and sales effort on supply chain coordination

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