Coordination in a Two-Level Green Supply Chain with Environment-Conscious and Price-Sensitive Customers: A Nash Equilibrium View

Chen, Daqiang; Hua, Ertian; Fei, Yulian

doi:10.1109/icebe.2010.33

Cited by 3 publications

(8 citation statements)

References 7 publications

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“…The cooperation between players can be studied using the basic concept of Nash equilibrium developed in non-cooperative GT (Nash, 1951). Various studies investigate the game process of a GSC and provide a Nash equilibrium solution under decentralized channel policy (Xie, 2016; Chen et al, 2010; Barari et al , 2012; Ghosh and Shah, 2012). This means that the assumption of a sequential game is removed and it is assumed that the supplier and the buyer to determine the optimal policy by playing a strategic game.…”

Section: Methodological Categorizationmentioning

confidence: 99%

Modeling green supply chain coordination: current research and future prospects

Chauhan

Singh

2018

BIJ

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Purpose With rising environmental concerns, recent years have witnessed a significant surge of academic and corporate interest in green supply chain coordination (GSCC). This is evident from the rise in channel coordination literature focused toward the elimination of sub-optimal in the green supply chain (GSC). This paper seeks to summarize the model-based research on coordination in GSCs with the help of a framework developed specifically for this paper. The purpose of this paper is to present an in-depth analysis of the widely used models in the area. Design/methodology/approach A review of literature is presented in this paper to examine the underlying concepts peculiar to GSCC. A classification framework is developed to present an exhaustive survey of commonly used concepts. Findings Around 90 percent of the papers on GSCC come from game theory (GT) application, which explicitly utilizes coordination through contracts. The review concludes prospective area of research in GSCC. The study posits that there exists a potential of creating a more rational and efficient coordination strategies to improve GSC’s operational performance, with the view of the optimum distribution of resources and better environmental management. Originality/value To the best of authors’ knowledge, this is the first state-of-the-art review of GSCC literature focused primarily on mathematical model-based literature. This review identifies various methodological and content-oriented characteristics of GSCC. The paper also opens avenues of future research.

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Section: Methodological Categorizationmentioning

confidence: 99%

Modeling green supply chain coordination: current research and future prospects

Chauhan

Singh

2018

BIJ

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“…However, there has been less emphasis on the interactions among the various stakeholders within the SC, and how they affect the relationship between green awareness and product sales. For example, Chen (2010) proposed a Nash equilibrium model for SC coordination with environmentally-conscious and price-sensitive customers; other studies look at product preferences and their effects on the carbon footprint (Du et al, 2015), environmentally sensitive customers (Altmann, 2015), and environmentally aware consumers (Giri and Bardhan, 2016). Zhang et al (2013) applies game theory to a three-level SC system in which market demand correlates to the product's "greenness", and Xu and Xie (2016) took the impact of products' eco-friendly level on demand and constructed a two-stage closed-loop supply chain composed by a single manufacturer and a single retailer.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The coordination among stakeholders is the key to the success of the green supply chain management, with game theory as the most popular methodology (c.f. Azevedo et al, 2011;Barari et al, 2012;Chen et al, 2010;Chen and Sheu, 2009;Guide et al, 2000). For example, Maiti and Giri (2017) proposed decentralized (Nash game), manufacture-led and retailer-led Stackelberg games, and centralized (cooperative game) structures to analyze the two-way product recovery in a two-echelon closed-loop supply chain.…”

Section: Introductionmentioning

confidence: 99%

Reverse logistics pricing strategy for a green supply chain: A view of customers' environmental awareness

Chen

Ignatius

Sun

et al. 2019

International Journal of Production Economics

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“…Akyuz and Erkan (2010) summarised a number of remaining challenges regarding performance measurement in the supply chain, including the need to better address the issues of partnerships (Duffy and Fearne, 2004) and collaboration (Min et al , 2005) between suppliers and manufacturers. Chen et al (2010) explored the issue of coordination in a two‐level supply chain consisting of a manufacturer, a retailer, and customers. However, their analysis highlights several opportunities for further research in that they did not consider inventory costs, did not compare coordinated and uncoordinated scenarios, and did not adequately address the complexities of investment associated with sustainability.…”

Section: Introductionmentioning

confidence: 99%

“…Our review of the literature showed that there is no analytical model available that considers sustainability in a supply‐chain context (e.g. Jaber and Zolfaghari, 2008; Ben‐Daya et al , 2008; Defee et al , 2010; Chen et al , 2010; Glock, 2012). However, a relevant work to the paper is that of El Saadany et al (2011) who attempted at developing a method to quantify the quality of the environmental performance of a supply chain.…”

Section: Introductionmentioning

confidence: 99%

Sustainability strategies in an EPQ model with price‐ and quality‐sensitive demand

Glock

Jaber

Searcy

2012

The International Journal of Logistics Management

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PurposeThe purpose of this paper is to present a mathematical model that illustrates the trade‐offs between sustainability, demand, costs, and profit in a supply chain with a single supplier and a single manufacturer.Design/methodology/approachIt is assumed that a single product is produced and sold on a market where demand is sensitive to price and quality. Sustainability is treated as a quality attribute and is measured in terms of the levels of scrap and emissions generated in the supply chain. It is assumed that the emissions and scrap can be controlled by varying production rates or by investing in production processes. The impact of cooperative and non‐cooperative behaviour between the supplier and the manufacturer is explored. Numerical studies are used to illustrate the behaviour of the model.FindingsThe analysis shows that the supplier and the manufacturer can attract additional customers by controlling scrap and emissions. The behaviour of the supplier and the manufacturer are dictated by the decision criteria, such as changes in the level of sustainability, used by customers to evaluate the product. It is shown that the profit of the system is higher and that the level of quality is lower in the case of cooperation than in the case of non‐cooperation.Research limitations/implicationsSeveral areas for future work are highlighted. The study of alternative demand functions, linking sustainability to a monetary component, including additional players, and incorporating additional sustainability indicators all offer possibilities for extending the model.Originality/valueThere is an identified need for analytical models that consider sustainability in the supply chain. The results are especially important for companies operating in markets where customers perceive the sustainability of a product as a quality criterion.

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Coordination in a Two-Level Green Supply Chain with Environment-Conscious and Price-Sensitive Customers: A Nash Equilibrium View

Cited by 3 publications

References 7 publications

Modeling green supply chain coordination: current research and future prospects

Modeling green supply chain coordination: current research and future prospects

Reverse logistics pricing strategy for a green supply chain: A view of customers' environmental awareness

Sustainability strategies in an EPQ model with price‐ and quality‐sensitive demand

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