Supply chain channel coordination with triple bottom line approach

Biswas, Indranil; Raj, Alok; Srivastava, Samir K.

doi:10.1016/j.tre.2018.05.007

Cited by 115 publications

(54 citation statements)

References 29 publications

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“…In keeping with previous publications [1,2,5,6,9,11,17,24], a socially responsible firm's CSR in our model setting is accounted for in the form of a share of consumer surplus. The CSR firm's objective is to maximize her (or his) traditional pure profit plus a portion of consumer surplus accumulated from stakeholders.…”

Section: Model Developmentmentioning

confidence: 77%

“…Moreover, they adopted TPT contracts to coordinate the chain. Biswas et al [2] considered a two-layer sustainable supply chain which simultaneously involves CSR and green efforts, and investigated how these two kinds of sustainability responsibilities are allocated between channel members. Ni et al [19] examined how CSR investment cost is allocated in a two-echelon supply chain with wholesale price contracts.…”

Section: Literature Reviewmentioning

confidence: 99%

“…the retailer's pure profit is 2) and the chain-wide pure profit under each decentralized scenario is…”

Section: Model Developmentmentioning

confidence: 99%

“…Spurred by the increasing pressure of governmental and non-governmental organizations, many companies have been actively engaged in responsible business conduct. For example, Sony takes its stakeholders' concerns seriously and works closely with its suppliers on initiatives in fields such as human rights, labor conditions, health and safety, and environmental protection 2 . The BMW Group considers the fulfillment of CSR as an indispensable part of its sustainable development strategy 3 .…”

Section: Introductionmentioning

confidence: 99%

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Socially responsible supply chains with cost learning effects

2020

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Corporate social responsibility (CSR) has been attracting increasing attention. This paper investigates the implications of CSR upon a two-period manufacturer–retailer supply chain with cost learning effects which have been widely observed in different industries. Two scenarios are under consideration: the retailer exhibits CSR in one and the manufacturer does in the other. The analytical results demonstrate that compared with no CSR, the implementation of CSR generates higher pure profit for the entire chain. In contrast to the scenario where the manufacturer shows CSR, in the scenario where the retailer exhibits CSR, the manufacturer charges higher wholesale prices while the retailer charges lower retail prices, resulting in a higher chain-wide profit. Moreover, two-part tariff contracts are designed to coordinate the socially responsible supply chains. When coordinated, if the retailer exhibits CSR the wholesale prices are equal to the realized production cost which results from cost learning effects, while the wholesale prices are lower than the realized production cost if the manufacturer shows CSR. Interestingly, cost learning effects impair the pure profit of the coordinated supply chain when the effect of CSR is sufficiently high.

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Section: Model Developmentmentioning

confidence: 77%

Section: Literature Reviewmentioning

confidence: 99%

“…the retailer's pure profit is 2) and the chain-wide pure profit under each decentralized scenario is…”

Section: Model Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Socially responsible supply chains with cost learning effects

2020

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“…The literature on supply chain coordination is well established in the operations management field (Pasternack, 1985;Lariviere & Porteus, 2001;Gerchak & Wang, 2004;Cachon & Lariviere, 2005;Nagarajan & Rajagopalan, 2008;Panda, 2014;Biswas, Raj, & Srivastava, 2018). However, these articles explore supply chain performance in normal settings and do not consider the existence of GM.…”

Section: Literature Reviewmentioning

confidence: 99%

Supply Chain Contracts in the Presence of Gray Markets

Srivastava

Mateen

2019

Decision Sciences

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Abuse of channel incentives by a manufacturer's authorized retailers often encourages gray markets to emerge, which affects supply chain profit as well as the manufacturer's brand image. Therefore, myopically selecting a product distribution contract can be harmful. We analyze the performance of a number of contracts in the presence of a gray market—primarily wholesale price, revenue sharing, and quantity discounts—and analyze their impact on prices charged, quantity ordered, as well as profits. We also investigate their impact on consumer surplus and social welfare. Our results indicate that selection of an appropriate contract is quite crucial, as different contracts give different results across a variety of operating parameters. Their performance is governed by the relative trade‐offs involving diversion of excess quantity to the gray market at the end of the season, an extension of target market due to lower prices in the alternate channel, and the negative impact on the manufacturer's brand that also affects its revenue. We delineate these characteristics and find that, in general, the quantity discount contract performs the worst. Interestingly, if the blowback suffered by the manufacturer on account of product availability in the gray market is high, the wholesale price contract may outperform the other contracts, including the revenue‐sharing contract with a truthful retailer, which otherwise is a more attractive option. We discuss the implications of our analysis, and also provide strategies and pointers to manage the impact of gray markets.

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Analyzing coordination strategy of circular supply chain in re‐commerce industry: A game theoretic approach

et al. 2022

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The circular economy seeks to reduce waste by reusing, refurbishing, and recycling used products. It increases the resource value of used goods. In this study, we proposed a circular business gap exploiter model in which a re-commerce company exploits residual value in product systems utilization. A game-theoretic approach is used to investigate the coordination problem of a two-echelon circular supply chain with e-commerce and re-commerce companies. In addition, we proposed a coordinated structure under the revenue sharing contract and the two-part tariff contract through Nash negotiation to address the coordination problems. We compared the centralized and decentralized model findings and observed that the decentralized model shows potential for improvement. We showed model's applicability through numerical examples and sensitivity analysis to indicate how parameters such as wholesale price and retail price affect channel decisions and member profits. The results show that a two-part tariff contract may efficiently coordinate the circular supply chain. The study shows that under a circular business model, two tactics may be applied. These are extending product value and extending resource value.

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Supply chain channel coordination with triple bottom line approach

Cited by 115 publications

References 29 publications

Socially responsible supply chains with cost learning effects

Socially responsible supply chains with cost learning effects

Supply Chain Contracts in the Presence of Gray Markets

Analyzing coordination strategy of circular supply chain in re‐commerce industry: A game theoretic approach

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