Dual-channel Green Supply Chain Research Articles

Effects of Imprecise Cognitive Biases and Free-Riding on the Pricing Decisions of Dual-Channel Supply Chain Members

Nowadays, to cater the increasing green customers, firms have switched to green manufacturing. In a dual-channel green supply chain (DCGSC), customers experience products at offline stores and buy them online (free-riding). Often imprecise cognitive biases (“fairness concern” and “overconfidence”) are observed among the supply chain (SC) members. With these facts, this study introduces the free-riding and above cognitive biases in a DCGSC with a manufacturer selling a green product through own online and offline retail channels and examines their effects. A centralized and four decentralized models (for green and nongreen products) are formulated depending upon channel members’ cognitive biases individually and jointly with and without free-riding. The fuzzy objectives and constraints are made deterministic using expectation and possibility measures, respectively. Models are solved and illustrated numerically. The results indicate that free-riding is harmful and beneficial to retailer and manufacturer, respectively. Manufacturer’s overconfidence enhances the retailer’s profit but decreases or increases own profit depending upon the salvage value. Retailer’s fairness concern is catastrophic for manufacturer but beneficial for her. Product greening increases manufacturer’s profit than the carbon tax regulation for lower emissions. In addition to above observations, for maximum profit, management should not go for greening beyond an optimum level.

Optimal pricing and financing decision of dual-channel green supply chain considering product differentiation and blockchain

Optimal pricing and financing decision of dual-channel green supply chain considering product differentiation and blockchain

Developing sustainable and efficient customer-centric strategies for a three-stage dual-channel green supply chain: a game-theoretic approach with two-part tariff contract

Developing sustainable and efficient customer-centric strategies for a three-stage dual-channel green supply chain: a game-theoretic approach with two-part tariff contract

Blockchain-driven dual-channel green supply chain game model considering government subsidies

In order to improve the performance of green supply chain and promote the adoption of blockchain, this paper establishes a dual-channel green supply chain consisting of a green manufacturer and a retailer, and builds Stackelberg game model considering different scenarios. We analyze the impact of blockchain operating costs and consumer uncertainty about the product greenness. Furthermore, we study the government subsidy for manufacturers' green costs and its impact on supply chain performance and blockchain adoption. Findings reveal that without blockchain technology, government subsidy can improve manufacturers' and retailers' profits. However, when blockchain is adopted, the subsidy effect depends on the blockchain operating costs. In case of higher blockchain operating cost, the product prices and greenness decrease as the green cost subsidies increase; In case of lower blockchain operating cost, the increase in green cost subsidies will lead to increased product prices and greenness; Green cost subsidies can raise profits and lower the blockchain adoption threshold.

零售商行为偏好下双渠道绿色供应链博弈分析

零售商行为偏好下双渠道绿色供应链博弈分析

Dynamic pricing and emission reduction efforts in a dual-channel green supply chain under bidirectional free riding

In this study, a tripartite dynamic game framework is introduced to address the joint carbon reduction challenges among green supply chain members and the bidirectional free-riding behavior of digital and brick-and-mortar retailers. The model specifically involves a manufacturer, a digital retailer, and a brick-and-mortar retailer, examining their optimal pricing and emission reduction decisions, as well as the extent of the bidirectional free-riding effect. The findings indicate that both the manufacturer's enhancement of emission reduction efforts and the retailers' amplification of their promotional endeavors result in increased prices and profits. The influence of a retailer's low-carbon reputation on the manufacturer's carbon reduction initiatives depends on the impact of the manufacturer's own emission reduction level on their efforts. Furthermore, due to the bidirectional free-riding phenomenon, the effect of the digital (brick-and-mortar) retailer's low-carbon reputation on the promotional efforts of the brick-and-mortar (digital) retailer relies on the influence of their own low-carbon reputation on their promotional initiatives. In addition, the bidirectional free-riding behavior of digital and brick-and-mortar retailers is closely associated with factors such as the coefficient of the retailer's promotional effort level, the coefficient of the retailer's promotional cost, the attenuation rate of low-carbon reputation, and other parameters.

Exploring the spillover effect and supply chain coordination in dual-channel green supply chains with blockchain-based sales platform

With the increasing consumer demand for environmentally friendly products, it has become crucial for manufacturers to effectively communicate their sustainability efforts. While the literature extensively examines the benefits of blockchain technology in facilitating informed decision making, little research has explored its cross-channel influence (spillover effect) on decisions in a dual-channel green supply chain. In this study, we investigate a green supply chain with a manufacturer operating a direct channel and making efforts to improve product greenness and a blockchain-based sales platform whose service has a spillover effect on consumer valuation of product greenness in the direct channel. Our findings indicate that, in an uncoordinated supply chain, the spillover effect adversely affects the platform but benefits the manufacturer, while it benefits both parties under coordination. This underscores the importance of supply chain coordination for the sales platform to capitalize on the spillover effect. Moreover, under coordination, variations in key parameters generally align product greenness with supply chain profitability. Finally, the spillover effect typically triggers a shift in demand from the platform to the direct channel, whereas a stronger consumer preference for the platform tends to drive the opposite shift in demand. Interestingly, when product greenness improvement is less costly and the blockchain cost is significant, the spillover effect can stimulate sales on both channels. And, when product greenness improvement is less costly and the blockchain cost is small, a stronger consumer preference for the platform can lead to a shift in demand from the platform to the direct channel.

Pricing strategies in a dual-channel green closed-loop supply chain considering incentivized recycling and circular economy

In recent years, significant attention has been dedicated to the design of closed-loop supply chains. However, opportunities exist to refine modeling approaches in alignment with circular economy principles. This refinement could foster the collaborative involvement of customers and retailers, resulting in a more sustainable operational framework. This study aims to address this gap, fostering waste reduction, resource conservation, and collaborative engagement in closed-loop supply chains. Thus, a multi-level, dual-channel green closed-loop supply chain that integrates circular economy principles is examined. We focus on implementing an incentive-based recycling program and examining various closed-loop supply chain settings: centralized, decentralized, and collaborative. We aim to determine optimal equilibrium prices, greening levels, and advertising strategies while considering the concurrent aspects of greening and incentivized recycling in today environmentally conscious era. By developing a demand function that integrates price elasticity, cross-price impacts, sustainability, and advertising, we evaluate performance through numerical examples and a case study in the clothing industry. The findings indicate that a collaborative approach surpasses a decentralized one regarding sustainability, guaranteeing profitability across the supply chain. The study also underscores the trade-offs between centralization and decentralization, with the former failing to ensure maximum individual profitability despite augmenting overall chain profits. Our findings can guide managers in reconciling profitability with sustainability when choosing supply chain structures, accentuating the value of collaborative strategies and green cost-sharing contracts. Furthermore, our results highlight that targeted advertising can stimulate demand for green products, and incentivizing circular economy practices through collaboration can yield positive environmental and economic outcomes.

Investigating a closed-loop dual-channel green supply chain with stochastic demand rate and collection ratio using the distribution-free approach

This paper investigates a dual-channel closed-loop supply chain in an uncertain market environment consisting of a manufacturer, a retailer, and a collector, where the manufacturer can produce green products by utilizing recycling components from the collector and raw materials from an outside source. According to our analysis, market demand is stochastic and strongly influenced by channels’ selling prices, the level of green innovation, and retail service. Additionally, the collection rate of used-obsolete products is also random and affected by green innovation levels and refund prices. We analyze the model by dividing it into three scenarios based on players’ collaborative and non-collaborative behavior and then solve the problem in centralized and decentralized cases through a distribution-free approach. Using vertical Nash and Stackelberg game approaches, the interaction between players is modeled in the decentralized scenario. The model’s findings are illustrated with a numerical example, and a sensitivity analysis is also performed to provide insights into management by determining how different parameters will impact profits. Results suggest that the higher expected value of demand randomness is linked to increased market scale but that random variables with higher variance levels are more uncertain, leading to lower channel profitability. Moreover, a collaborative effort between manufacturer and collector could improve both prices and greenness, ultimately boosting the fraction collected. In addition, results reveal that the retailer Stackelberg frameworks will most adversely affect players, whereas the manufacturer Stackelberg frameworks will generate profits almost every time.

Analysis of a dual-channel green supply chain game-theoretical model under carbon policy

In today's worldwide markets, supply chain members have to control carbon emissions for a clean environment. This study addresses a dual-channel green supply chain model by contemplating dual selling channels, carbon diminution rate and online delivery lead-time as marketing efforts to fascinate customers to buy more products. Moreover, the carbon tax protocol, green technology, carbon cap-and-trade protocol are applied to the supply chain to save the environment by reducing carbon emissions. The customers' demands for both the direct and traditional retail channels are dependent on direct selling price, retail price, carbon reduction rate, and delivery lead-time of online products. The objective of this work is to maximise the supply chain profit by minimising the amount of carbon emissions. To determine optimal outcomes, a centralised system, manufacturer-leadership Stackelberg game and retailer-leadership Stackelberg game are employed. A comparison among the centralised system and the two Stackelberg games is also carried out. The results presented that to enhance the profits of the manufacturer as well as retailer and to decline carbon emissions, manufacturer-leadership Stackelberg game is the adequate game policy. Some managerial inspirations of this proposed work are listed. The paper ends with conclusions and possible future research directions.

Research on the development of dual-channel green supply chain under dual-carbon background

This thesis constructs the green system of dual-channel green supply chain, and analyzes the key problems in the operation process of dual-channel green supply chain from the aspects of supplier selection, green technology, standardization and performance evaluation. This paper aims to explore the follow-up research direction of dual-channel green supply chain by combining the existing research basis, and further improve the research on dual-channel green supply chain.

Research on Pricing and Coordination of Dual-Channel Green Supply Chain

In recent years, environmental pollution and resource waste have become the focus of heated discussion around the world. In order to realize green and sustainable development, the development of green supply chain (GSC) has attracted the attention of many scholars. The research object of this paper is the dual-channel green supply chain (DGSC) composed of online channels and offline channels. The supplier is the leader of the entire DGSC, and it needs to optimize the wholesale price of the product and the level of green investment to maximize its own benefit. In addition, the supplier also needs to establish contracts with network sales platform (NSP) and store sales platform (SSP) to increase the benefit of NSP and SSP, and ultimately increase the benefit level of the entire DGSC. Among them, we constructed a centralized decision (CD) model and a decentralized decision (DD) model, and obtained the optimal pricing, optimal greenness and optimal benefit of the supplier, NSP and SSP under the two models. We found that the benefits of SC members under the DD model are generally lower than those of the CC model. Therefore, we built contracts between the supplier, NSP and SSP to coordinate. Finally, we substituted specific parameters to verify the model. The following conclusions are drawn: (i) When consumers prefer online sales channels, it will positively affect the online sales price, online sales volume and greenness level of DGSC. At the same time, it negatively affects offline sales price and sales volume. (ii) The benefit of DGSC and the benefit of NSP, SSP, and the supplier show a phenomenon of decline first and then increase with respect to consumers’ preference for online sales channels. (iii) Under the coordination contract, the subsidy factor positively affects the benefits of the supplier and online and offline wholesale prices, and negatively affects the benefits of online platforms and physical stores.

Pricing and green promotion effort strategies in dual-channel green supply chain: considering e-commerce platform financing and free-riding

PurposeThis paper aims to explore product pricing and green promotion effort policies and further analyzes the influences of financing interest rate, green promotion effort and free-riding behavior on the optimal strategies.Design/methodology/approachResearch will be conducted with the aid of Stackelberg game research method, considering that the manufacturer has financial constraints and financing from e-commerce platform, and consumers have dual preferences, based on the two models of no green promotion effort for physical store and green promotion effort for physical store to explore dual-channel green supply chain strategies.FindingsThis research puts forward the following findings, in the two models: the rise in financing interest rate leads to an increase in wholesale and selling prices of dual channels and a decrease in demand of dual channels. The green promotion effort has a positive impact on wholesale prices, selling prices and demand of dual channels. The rise of free-riding rate makes offline wholesale and selling prices fall, whereas online wholesale and selling prices rise.Originality/valueThis research results can provide reference for the decision-making in the context of supply chain financing and free-riding.

Optimal Decision-Making of Retailer-Led Dual-Channel Green Supply Chain with Fairness Concerns under Government Subsidies

Green innovation is the inevitable trend in the development of the supply chain, and thus the government adopts subsidy policies for the relevant enterprises to enhance their enthusiasm for green development. In view of the manufacturers’ fairness concerns in the dual-channel green supply chain that is composed of manufacturers and retailers, we propose a novel Stackelberg game model led by retailers and analyze the impact of manufacturers’ fairness concerns on the decision-making of manufacturers and retailers in the dual-channel green supply chain under government subsidies. The results show that only the wholesale price of products, manufacturers’ profits, and retailers’ profits are affected by manufacturer’s fair concerns. When manufacturer has fair concerns, product greenness and profits of supply chain members rise with the increase in government subsidies. The results can offer an effective reference for the dual-channel supply chain members with fairness concerns to make optimal decisions under government subsidies.

Research on Coordination in a Dual-Channel Green Supply Chain under Live Streaming Mode

In this paper, we study the coordination issue in a dual-channel green supply chain with one manufacturer and one retailer. The demand in the traditional channel is assumed to be dependent on retail price, sales effort and green degree. Due to the characteristic of live broadcast selling, the demand in the direct channel is assumed to be dependent on price and discount. On the basis of analyzing price, sales effort and green degree strategies in the supply chain under the centralized model, two decentralized models and two coordination models are presented. Moreover, we prove the feasibility of sharing the R&D costs of the green degree and sales effort costs of the advertisement (CS-GS) contract through bargaining problems achieving a win-win situation, but the revenue sharing and wholesale price (RSC) contract commonly used cannot efficiently coordinate the supply chain. Finally, numerical analysis is given to show the impacts of coordination contracts on the supply chain’s performance as well as the impacts of parameters on profits and decisions in the four models. It reveals that the CS-GS contract can not only help to improve the green degree and the price of the product, but also improve the profitability of all supply chain members.

Robust Pricing for a Dual-Channel Green Supply Chain Under Fuzzy Demand Ambiguity

The pricing decision is a fundamental problem in a two-echelon dual-channel supply chain, and it is a challenging issue to get the optimal pricing strategy due to high demand ambiguity. Although this problem has been studied by many researchers, the market demand is usually assumed to be deterministic or described as a fuzzy variable with exact distribution information in most of the existing literature. In this article, the uncertain demand is assumed to possess fuzzy uncertainty instead of stochastic nature. In the case that the demand distribution information is partially available, this article proposes a new uncertainty distribution set to depict the demand distribution uncertainty based on the type-2 fuzzy theory. Then, a novel robust pricing game modeling framework is developed for the dual-channel green supply chain with the demand distribution varying in the proposed uncertainty distribution set. Finally, a new method is proposed for obtaining the robust equilibrium decisions of supply chain members. Numerical analysis and comparisons are conducted to demonstrate the impacts of the demand ambiguity on the manufacturer’s equilibrium channel choice strategy. We also demonstrate that our solution results are robust in the setting that the prices of the green products are not equal in the retail and the direct channels.

Pricing and promotion efforts strategies of dual-channel green supply chain considering service cooperation and free-riding between online and offline retailers

Pricing and promotion efforts strategies of dual-channel green supply chain considering service cooperation and free-riding between online and offline retailers

Pricing and manufacturing strategy of dual-channel green supply chain under common product competition

As consumers' green demand continues to rise, the competition between ordinary products and green products is becoming more and more intense. In order to study the impact of product competition and consumer green demand on product price and product greenness, as well as the optimal manufacturing strategy of dual-channel green supply chain, for a manufacturer and a retailer that can produce common products and green products, a set of The dual-channel supply chain composed of traditional retail channels and online direct sales channels, according to the different production modes of manufacturers, established a dual-channel supply chain game model of traditional production mode, green production mode and mixed production mode, and compared the products under the three production modes Price, greenness, and manufacturer's profit are verified with examples. The results show that: based on the consistent pricing strategy, consumer channel preference directly affects product price and greenness; product competition and consumer green demand sensitivity coefficients both promote product prices and product greenness; the manufacturer's optimal manufacturing strategy For the mixed production mode.

Investigating dual-channel green supply chain considering refurbishing process and product recycling with environmental awareness effort

The internet makes online purchasing convenient for consumers. Furthermore, low resources, greenhouse gas emissions, higher production costs, and various environmental issues compel firms to recycle products. This study proposes a dual-channel closed-loop supply chain comprising three members with the refurbishment of recovered products. The manufacturer has two production units (manufacturing and refurbishing) marketed online and traditional channels for fresh green products and only online for refurbished and returned products. The manufacturer uses green innovation technology to ensure that the product remains green. The recycler retrieves customers’ old products through an attractive buy-back price and environmental awareness. The study considers green level, promotion level, and selling price sensitive linear demand. This model is analyzed by comparing one centralized and eight decentralized scenarios (Stackelberg and Nash game approaches). Validation of the model is provided through a numerical example, and sensitivity analysis is performed to understand how critical parameters affect performance. This study found that the chain performance (i.e., the highest green level, the highest promotional effort level, and the highest chain profit) is optimal in the centralized system, proving that the system is highly efficient regarding environmental and economic benefits. The supply chain performance in the Nash game case where manufacturer and retailer play as a single-player is impressive and closer to the centralized model. Again, in another Nash game case where the retailer and recycler participate as a single member, a maximum number of products are recovered, which helps the recycler to achieve the highest profit.

Optimal pricing policy in a three-layer dual-channel supply chain under government subsidy in green manufacturing

As global governments pay more attention to environmental issues, the idea of environmental protection has now been incorporated into the supply chain, and green supply chain management has become particularly significant. As such, this paper proposes a three-layer green supply chain model with a dual-channel structure consisting of a supplier, a manufacturer, and a retailer. The manufacturer sells the product through a (a) traditional retail-channel or (b) direct online-channel. The manufacturer sets a green product standard, while the government offers a subsidy to the manufacturer for green investment. We analyze the optimal decision under government subsidy and no government subsidy to maintain the profit maximization criteria of the supply chain. In addition, both the centralized and decentralized marketing strategies are evaluated using the Stackelberg game approach. To achieve the best pricing decisions for supply chain members, we compare the optimal pricing under consistent and inconsistent sales prices in both online and offline channels. The prime objective of the paper is to explore and compare the optimal pricing strategy with and without government subsidy pertaining to maximizing the overall profit of the supply chain. The numerical illustration and sensitivity analysis indicate that government subsidy can reduce the cost of green items and is beneficial to both manufacturer and supplier. Our research findings can lead to better decisions with and without government subsidy for members of the dual-channel green supply chain as well as enhance green product market competitiveness.