Supply chain channel coordination with triple bottom line approach

Abstract

In this paper, we explore coordination of a sustainable risk-neutral supply chain that faces greening effort dependent demand. We propose a framework for exclusive distribution of sustainability responsibilities in a decentralised setting. We classify decentralised supply chain according to distribution of responsibilities for greening and social efforts. Our study demonstrates that greening and social responsiveness indices simultaneously influence all optimal parameters of a supply chain. We analyse generalised wholesale price and linear two-part tariff contracts for dyadic supply chains with triple bottom line objective. We demonstrate that a decentralised supply chain can be coordinated when the supplier is socially responsible.