Abstract
This paper addresses the problem of green manufacturing decision making for a green dual-channel supply chain (SC). In the investigated SC, the manufacturer will decide whether to adopt green manufacturing under the influence of the retailer’s fairness concern-based dual-channel. Thus, we discuss two decision scenarios: the no green manufacturing strategy with retailer fairness (NM model), and green manufacturing with retailer fairness (GM model). Our study has several findings: Firstly, adopting a green manufacturing strategy is not always beneficial to supply-chain members when a retailer has fairness. In particular, when fairness is at a relatively high level, the manufacturer will not adopt green manufacturing. Secondly, under green manufacturing, the product’s green degree and subsidies have a positive impact on the price and demand and the members’ profit and utility. Besides, the subsidies and retailer fairness have a counter effect on the optimal decision. Thirdly, comparing the two scenarios (NM & GM), we found that the channel price of the GM model is lower than the NM model. Finally, from the perspective of the supply chain system, the system tends toward the manufacturer adopting green manufacturing and maintaining retailer fairness concerns at a lower level.
Highlights
With the development of the global economy, environmental issues have become the focus of the attention of the state, enterprises, and society in recent years
It can be found that under green manufacturing, each channel price of green products are lower than that without green manufacturing. The reason behind this is mainly due to the retailer’s fairness, the green degree of products and government subsidies. This is consistent with real life, such as in battery electric vehicles (BEVs) which are cheaper than the corresponding fuel vehicles (FVs); in 2016, the manufacturer’s suggested retail price of a Volkswagens e-Golf was $32,157, while the basic diesel Golf was $33,226 [42]
Under the background of a dual-channel system, this paper constructs a green dual-channel supply chain model to analyze whether a manufacturer adopts a green manufacturing strategy when the retailer has fairness concerns and comprehensively considers the impact of a product’s green degree, government subsidies, channel competition, and market share on the members’ optimal decision-making
Summary
With the development of the global economy, environmental issues have become the focus of the attention of the state, enterprises, and society in recent years. The manufacturer compares the traditional dual-channel supply chains to make decisions about green manufacturing under the influence of the retailer’s fairness concerns, channel competition, and government subsidies. The problems that the research project needs to solve can be summarized as follows: first, in contrast to previous research, when a retailer has fairness concerns, it is questioned whether the manufacturer adopting green manufacturing is beneficial to supply chain members and systems under the dual-channel mode. Under this strategy, what are the manufacturer’s and retailer’s optimal decisions?
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