Active or passive? Sustainable manufacturing in the direct-channel green supply chain: A perspective of two types of green product designs

2018 ◽  
Vol 65 ◽  
pp. 332-354 ◽  
Author(s):  
Jingzhe Gao ◽  
Zhongdong Xiao ◽  
Haixiao Wei ◽  
Guanghui Zhou
Keyword(s):  
Supply Chain ◽  
Sustainable Manufacturing ◽  
Green Supply Chain ◽  
Green Product ◽  
Direct Channel

scholarly journals Dynamic vs. Static Wholesale Pricing Strategies in a Dual-Channel Green Supply Chain

Complexity ◽  
2019 ◽  
Vol 2019 ◽  
pp. 1-14 ◽  
Author(s):  
Yongzhao Wang ◽  
Xiaojie Sun
Keyword(s):  
Energy Efficiency ◽  
Supply Chain ◽  
High Energy ◽  
Pricing Strategy ◽  
Green Supply Chain ◽  
Green Product ◽  
Pricing Strategies ◽  
Direct Channel ◽  
Dual Channel ◽  
Wholesale Pricing

With the improvement of social environmental awareness, the dual-channel green product sales mode has been widely used by many manufacturing firms. In this paper, we consider a dual-channel green supply chain where one manufacturer produces a green product and sells it through one retail channel and its own direct channel. Consumers in the two channels have different perceptions of the product energy efficiency level due to different purchasing experiences. The product energy efficiency level evolves over time and is characterized as a dynamic variable. By developing and solving the Stackelberg differential game problems under the dynamic and static wholesale pricing strategies, respectively, we obtain the main results in this paper. First, the manufacturer has more incentives to invest in green innovation when more consumers buy the green product through the direct channel. Second, the manufacturer prefers to adopt the dynamic wholesale pricing strategy in most cases and prefers the static one only when the consumers in both channels have relatively high energy efficiency perceptions. By introducing the transfer payment contract, we show that the static wholesale pricing strategy may be the better choice, which leads to a win-win outcome for both members. Finally, sensitivity analysis further provides some managerial insights and verifies the robustness of the results.

scholarly journals Pricing Policies in a Retailer Stackelberg O2O Green Supply Chain

2020 ◽  
Vol 12 (8) ◽  
pp. 3236
Author(s):  
Gan Wan ◽  
Gang Kou ◽  
Tie Li ◽  
Feng Xiao ◽  
Yang Chen
Keyword(s):  
Supply Chain ◽  
Stackelberg Game ◽  
Good Combination ◽  
Green Supply Chain ◽  
Game Model ◽  
Mathematical Function ◽  
Pricing Strategies ◽  
Direct Channel ◽  
Retail Channel ◽  
Offline Channels

Due to the popularization of the concept of “new retailing”, we study a new commercial model named O2O (online-to-offline), which is a good combination model of a direct channel and a traditional retail channel. We analyze an O2O supply chain in which manufacturers are responsible for making green products and selling them through both online and offline channels. The retailer is responsible for all online and offline channels’ orders, and the manufacturer gives the retailer a fixed fee. We construct a mathematical function model and analyze the greenness and pricing strategies of centralized and decentralized settings through the retailer Stackelberg game model. Due to the effects of the double marginalization of supply chain members, we adopt a simple contract to coordinate the green supply chain. The paper’s contributions are that we obtain pricing and greening strategies by taking the cooperation of offline channels and online channels into consideration under the O2O green supply chain environment.

‘Green' Supply Chain Management

2018 ◽  
pp. 299-322
Author(s):  
Padmanabha Aital ◽  
Prince Vijai
Keyword(s):  
Resource Allocation ◽  
Supply Chain ◽  
Sustainable Manufacturing ◽  
Green Supply Chain ◽  
Firm Boundaries ◽  
Internal Factors ◽  
Manufacturing Operations ◽  
Operational Practices ◽  
Operational Processes ◽  
Allocation Decisions

Operational practices of ‘green' supply chain processes within as well as across the firm boundaries are strongly linked with the firm performance. However, the desire for such practices is governed by external and/or internal factors. The challenge, therefore, for supply chain and operations managers is to design and develop an operations strategy that ensures the firms investments in such ‘green' initiatives. We develop a theoretical framework for resource allocation strategies for sustainable manufacturing operations that can be characterized as speculative, responsible, efficient, and sustainable resource allocation. This can aid managers in characterizing and controlling the firm's underlying operational processes and guide resource allocation decisions at strategic level.

Green Supply Chain Management Model for Sustainable Manufacturing Practices

2017 ◽  
pp. 153-189 ◽  
Author(s):  
Surajit Bag ◽  
Neeraj Anand ◽  
Krishan Kumar Pandey
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Manufacturing Sector ◽  
Sustainable Manufacturing ◽  
Green Supply Chain Management ◽  
Management Model ◽  
Green Supply Chain ◽  
Interpretive Structural Modeling ◽  
Chain Management ◽  
The Relationship

The purpose of this chapter is to identify the dimensions of green supply chain and their impact on manufacturing practices. In this study, the authors used two extended strategies. First thorough review of literature was done considering articles from reputed journals. Second the factors identified from literature review was further refined through experts by forming a problem solving group consisting of seven experts from the manufacturing sector. These factors were used to develop the green supply chain management model using Interpretive structural modeling. Further MICMAC analysis was used to identify the driving and dependence power of the factors. The results of the analysis are very encouraging. Finally, the authors have presented the relationship management strategy for sustainable manufacturing practices.

scholarly journals Pricing and Coordination Strategy in a Green Supply Chain with a Risk-Averse Retailer

2019 ◽  
Vol 2019 ◽  
pp. 1-12
Author(s):  
Liyan Wang ◽  
Minghai Ye ◽  
Shanshan Ma ◽  
Yipeng Sha
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Numerical Analysis ◽  
Random Variable ◽  
Retail Price ◽  
Green Supply Chain ◽  
Green Product ◽  
Risk Averse ◽  
Coordination Strategy ◽  
Optimal Decisions

This paper addresses the pricing and coordination strategy in a green supply chain in which a manufacturer produces a green product and sells it to a risk-averse retailer. The product’s demand is a random variable influenced by the green level and the retail price. The problem is modeled in three different structures, a centralized and two decentralized models, in which the upstream manufacturer and the downstream retailer act as the channel leader, respectively. This paper presents the optimal decisions for all supply chain members, analyzes the effects of green degree and risk-averse coefficient on the supply chain members’ decision-making and their profits, and performs the numerical analysis. The results show that the green degree and the whole supply chain’s expected profits are highest in the centralized scenario, followed by the retailer-led scenario, and lowest under the manufacturer-led scenario; the green degree and the manufacturer’s expected profit increase with the risk-averse coefficient, no matter who dominates the channel; however, the risk-averse coefficient’s effects on the retailer’s expected utility and the retail price depends on who dominates the channel and on the greening investment parameter.

‘Green' Supply Chain Management

2016 ◽  
pp. 1-23
Author(s):  
Padmanabha Aital ◽  
Prince Vijai
Keyword(s):  
Resource Allocation ◽  
Supply Chain ◽  
Sustainable Manufacturing ◽  
Green Supply Chain ◽  
Firm Boundaries ◽  
Internal Factors ◽  
Manufacturing Operations ◽  
Operational Practices ◽  
Operational Processes ◽  
Allocation Decisions

Operational practices of ‘green' supply chain processes within as well as across the firm boundaries are strongly linked with the firm performance. However, the desire for such practices is governed by external and/or internal factors. The challenge, therefore, for supply chain and operations managers is to design and develop an operations strategy that ensures the firms investments in such ‘green' initiatives. We develop a theoretical framework for resource allocation strategies for sustainable manufacturing operations that can be characterized as speculative, responsible, efficient, and sustainable resource allocation. This can aid managers in characterizing and controlling the firm's underlying operational processes and guide resource allocation decisions at strategic level.

A Sustainable Product Realization Strategy Using Decomposition-Based Approach

2014 ◽  
Vol 660 ◽  
pp. 1067-1071
Author(s):  
Lee Guang Beng ◽  
Badrul Omar
Keyword(s):  
Supply Chain ◽  
Product Development ◽  
Sustainable Manufacturing ◽  
Green Supply Chain ◽  
Development Phase ◽  
Design Development ◽  
Environmental Strategies ◽  
Sustainable Product ◽  
Product Realization ◽  
Line Management

To achieve sustainable product realization, three essential areas namely end-of-line management, green supply chain and sustainable manufacturing have to be considered during the design/development phase. A framework for product realization (presented as objective-mean hierarchy) is proposed in this paper with the help of decomposition-based approach to serve as a guideline for product development companies/firms to improve their environmental strategies by prescribing the key areas and necessary considerations to be scrutinized.

scholarly journals How Different Government Subsidy Objects Impact on Green Supply Chain Decision considering Consumer Group Complexity

2020 ◽  
Vol 2020 ◽  
pp. 1-12
Author(s):  
Qingfeng Meng ◽  
Mengwan Li ◽  
Zhen Li ◽  
Jing Zhu
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Green Supply Chain ◽  
Green Product ◽  
Green Products ◽  
Consumer Group ◽  
Environmental Preferences ◽  
Government Subsidies ◽  
The Government ◽  
The Impact

This paper fully considers the complexity characteristics of the consumer group, such as the heterogeneity of consumer environmental preferences and consumption levels and constructs a two-stage price decision model of green supply chain composed of the manufacturer and retailers. Under the four different scenarios, no government subsidies, government subsidies are given to the manufacturer, government subsidies are given to the green product retailer, and government subsidies are given to green product consumers, the impact of government subsidies on green supply chain member price decisions is analyzed, and the validity of the model is verified by an example. The results show that compared with the no government subsidies, government subsidies to the manufacturer will reduce the wholesale and sales prices of green products, and subsidies to the green product retailer will lead to higher wholesale prices and lower sales prices of green products, and subsidies to green product consumers will increase the wholesale and sales prices of green products. No matter which object is subsidized by the government, the wholesale price of general products will not change and the sales price will decrease. Government subsidies will facilitate the sales of green products, thereby expanding the market share of green products.

Pricing policies of a dynamic green supply chain with strategies of retail service

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shan Chen ◽  
Fuli Zhou ◽  
Jiafu Su ◽  
Longxiao Li ◽  
Biyu Yang ◽  
...  
Keyword(s):  
Supply Chain ◽  
Pricing Strategy ◽  
Green Supply Chain ◽  
Optimal Pricing ◽  
Green Product ◽  
Equilibrium Solutions ◽  
Content Type ◽  
Decentralized Supply Chain ◽  
Pricing Policies ◽  
Retail Service

PurposeThe paper investigates firms' optimal pricing policies and green strategies in a dynamic green supply chain with consideration of different retail service strategies. The purpose of the paper is to address the following research questions: (1) What are the optimal pricing policies and green strategies of the dynamic decentralized supply chain with the competitive or supportive retail service? (2) How does the dynamic consumer's perception of green product affect these equilibrium solutions?Design/methodology/approachThe paper establishes the dynamic game models and then derives a firm's instantaneous and steady-state feedback equilibrium solutions in three scenarios as follows: (1) the integrated supply chain; (2) the decentralized supply chain with competitive retail service and (3) the decentralized supply chain with supportive retail service. Finally, we conduct numerical analyses to compare the firm's instantaneous and steady-state equilibrium solutions and profit in the three scenarios.FindingsThe theoretical and numerical analysis results suggest that the supportive retail service is less inefficient than the competitive retail service in the decentralized supply chain and that the types of retail service have no influence on the green strategy. Moreover, a firm's myopia leads to lowering the greenness degree, retail service level and severe price competition, resulting in economic losses. Consumers’ initial perception of greenness degree determines whether the retailer should adopt the skimming pricing strategy or penetration pricing strategy. Furthermore, only when consumers’ perception of greenness degree is higher than a threshold, will the manufacturer produce green product with positive greenness degree.Originality/valueThis is one of few studies on the effect of different types of retail service on horizontal competition in green supply chain. The extension of the static study by adopting differential game approaches provides researchers with a deeper understanding of the application of retail service in green supply chain.

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