Pricing and coordination strategies of dual-channel green supply chain considering products green degree and channel environment sustainability

Abstract

ABSTRACTTo study the pricing and coordination problem of dual-channel green supply chain (DGSC) considering products green degree and the distinctive of channel environment sustainability, a DGSC with one manufacturer and one retailer is chosen as the study object, here, the manufacturer sells products through the direct channel and the retailer sells products by the traditional channel. Then, the market demand is revised considering products green degree and the channel environment sustainability. Based on these, effects of products green degree and the level of channel environment sustainability on supply chain members’ pricing strategies are analysed in both decentralised and centralised models, meanwhile, the effects of the cross-environmental-sustainability sensitivity coefficient on pricing strategies also are analysed. A new two-part compensation contract is proposed to coordinate the DGSC. Results shows that effects of the products green degree on pricing strategies in both decentralised and centralised models are same; however, its effects on supply members’ benefits are different. Influences of the level of channel environment sustainability on supply chain members’ pricing strategies and benefits in both decentralised and centralised models are different. Meanwhile, when the compensation fee meet a certain range, the two-part compensation contract can coordinate this supply chain.