Abstract
Nowadays, the green supply chain has become an exciting concept in academic societies. This paper focuses on the optimal production decisions of two competing supply chains from the perspective of green degree. The manufacturers in each supply chain have two options—producing a green product or a non-green product. Game theory is applied to study four decision scenarios, which are derived from the difference in the products of the two supply chains. This study investigates the influence of inter-supply-chain competition on the wholesale price, green degree, and profits of the supply chain members. The results indicate that the inter-supply-chain competition has a negative correlation with the wholesale price. The inter-supply-chain competition has a significant impact on green degree in the four decision scenarios. In addition, green products are not always the dominant strategy of manufacturers. Both the competitors’ product decisions and the degree of inter-supply-chain competition should be considered. Finally, weak inter-supply-chain competition is beneficial to the leader supply chain, while strong competition is beneficial to the follower supply chain.
Highlights
Due to the intensifying issue of the global environment, as well as increases in consumers’ environmental awareness, green supply chain management (GSCM) has gained growing scrutiny in recent years within both academia and industry [1,2,3]
Four decision scenarios, which are derived from the difference in products of the two supply chains, are intended to explore the optimal price and green degree, the dominant strategy of manufacturers, and the influence of inter-supply-chain competition on the supply chain members’ profits
Most literature uses the form of fixed subsidies, whereas this paper proposes a novel subsidy form based on green degree, which further enriches the study in this field
Summary
Due to the intensifying issue of the global environment, as well as increases in consumers’ environmental awareness, green supply chain management (GSCM) has gained growing scrutiny in recent years within both academia and industry [1,2,3]. Four decision scenarios, which are derived from the difference in products of the two supply chains, are intended to explore the optimal price and green degree, the dominant strategy of manufacturers, and the influence of inter-supply-chain competition on the supply chain members’ profits. We make the following contributions: (1) In this paper, two types of competition— inter-supply-chain price competition and green degree competition—are considered simultaneously to investigate the influence on manufacturers’ product decisions. (2) In this study, a dual Stackelberg game is established, that is, both inter- and intra-supply chain adopt the Stackelberg game, and both sides are competitive This consideration is extremely consistent with the real production operation, and is of great significance in academic and practical aspects.
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