Abstract

With the increasing demand for “green” goods, it is necessary for companies to develop green innovation to seize market opportunities. Companies often use the model of supply chain cooperation to carry out green innovation. The standard reward and punishment contract model is constructed based on the green degree of the product provided by the supplier when the manufacturer has a fair preference. The impact of the manufacturer’s fairness preference on the green degree of the product, price, manufacturer’s profit, supplier’s profit, and overall profit when the product green degree standard provided by the supplier is greater or smaller than the manufacturer’s demand standard is analyzed. The impact of the difference in channel power between manufacturers and suppliers is also analyzed on the overall profit of the green supply chain. The research results showed that when the manufacturer’s attention to fairness is equal to the attention to self-interest, the overall profit of the green supply chain is the largest, the coordination of the supply chain can be achieved, and the difference in the channel power of the participants in the green supply chain has a significant impact on the overall profit, which is verified by numerical analysis.

Highlights

  • As the major environmental burden and serious ecological problems worsen, the green and sustainable supply chain management mode has become the focus of attention all over the world

  • Based on the quantity-based reward–penalty contract proposed by Chiu [39], this paper improved the original model by using the green degree standard and constructed a two-level green supply chain model composed of manufacturers and suppliers

  • Manufacturers should pay attention to fairness as well as their own benefits as product it is crucial for a reliable green supply chain management system, which helps to improve for a reliable green supply chain management system, which helps to improve product green degree and supply chain revenue

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Summary

Introduction

As the major environmental burden and serious ecological problems worsen, the green and sustainable supply chain management mode has become the focus of attention all over the world. Based on the retailer’s fairness preference behaviors, Zhou studied the game model and decision-making problem of a dual-channel green supply chain and analyzed the influence of the fairness preference degree on the product’s green degree and profit [34]. Most of the literature only focuses on the evaluation, selection and cooperation mechanism of supply chain partners, but the research on innovation investment decision making and the coordination of member enterprises in the green supply chain with green innovation investment as the main body is not deep enough, especially in terms of the problem of how to stimulate and improve the green degree of products from the perspective of fairness. An example is used to verify the effectiveness of the proposed model

Basic Assumptions
Model Analysis
Improved ‘ERC’ Model
Model Solving and Coordination Analysis
Model Expansion Analysis
Numerical Examples
Managerial Insights
Conclusions
Full Text
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