A differential game analysis on green technology innovation in a supply chain with information sharing of dynamic demand

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Junyi Wei ◽  
Chuanxu Wang
Keyword(s):  
Supply Chain ◽  
Information Sharing ◽  
Differential Game ◽  
Technology Innovation ◽  
Green Technology ◽  
Demand Model ◽  
Dynamic Demand ◽  
Content Type ◽  
Demand Information

PurposeThe objective of this paper is to investigate the impact of the information sharing of the dynamic demand on green technology innovation and profits in supply chain from a long-term perspective.Design/methodology/approachThe authors consider a supply chain consisting of a manufacturer and a retailer. The retailer has access to the information of dynamic demand of the green product, whereas the manufacturer invests in green technology innovation. Differential game theory is adopted to establish three models under three different scenarios, namely (1) decentralized decision without information sharing of dynamic demand (Model N-D), (2) decentralized decision with information sharing of dynamic demand (Model S-D) and (3) centralized decision with information sharing of dynamic demand (Model S-C).FindingsThe optimal equilibrium results show that information sharing of dynamic demand can improve the green technology innovation level and increase the green technology stocks only in centralized supply chain. In the long term, the information sharing of dynamic demand can make the retailer more profitable. If the influence of green technology innovation on green technology stocks is great enough or the cost coefficient of green technology innovation is small enough, the manufacturer and decentralized supply chain can benefit from information sharing. In centralized supply chain, the value of demand information sharing is greater than that of decentralized supply chain.Originality/valueThe authors used game theory to investigate demand information sharing and the green technology innovation in a supply chain. Specially, the demand information is dynamic, which is a variable that changes over time. Moreover, our research is based on a long-term perspective. Thus, differential game is adopted in this paper.

Information sharing in a green supply chain with promotional effort

Kybernetes ◽  
2020 ◽  
Vol 49 (11) ◽  
pp. 2683-2712 ◽  
Author(s):  
Junfei Ding ◽  
Wenbin Wang
Keyword(s):  
Supply Chain ◽  
Information Sharing ◽  
Consumer Surplus ◽  
Green Supply Chain ◽  
Future Research ◽  
Content Type ◽  
Promotional Effort ◽  
Demand Information ◽  
The Impact ◽  
Share Information

Purpose The purpose of this paper is to investigate the retailer’s strategy of information sharing in a green supply chain with promotional effort, and the impact of information sharing on the decisions and profits of the manufacturer and the retailer. Design/methodology/approach The developed models aim to maximize the profits of the manufacturer, the retailer and the green supply chain system. The game theory is used to obtain the equilibrium solutions of both the manufacturer and the retailer. A two-part compensation (TPC) contract is designed to motivate the retailer to share information with the retailer. Numerical examples are used to show the impact of parameters on decisions by Matlab 2014. Findings The results show that the green degree increases while the promotional effort level decreases when the manufacturer receives the larger demand information from the retailer; information sharing leads to a profit increase to the manufacturer and a profit loss to the retailer, but can increase the profit of supply chain under a certain condition; information sharing reduces the expected consumer surplus. The TPC contract designed in this paper can not only motivate the retailer to share information but also increases the consumer surplus. Research limitations/implications The study has been done in a monopoly environment where only a retailer can forecast demand information. It is an interesting direction of future research when considering there are more retailers who can forecast such information in a supply chain. Originality/value There exist two main aspects that are different from the existing literature. The stochastic demand function related to the retail price, the green degree and the promotional effort have never appeared in previous literature. This paper considers a green product supply chain with a manufacturer who produces green products and a retailer who has an information advantage because of her promotional effort; this paper investigates the impact of information sharing on the consumer surplus and designs a contract to coordinate the green supply chain.

Research on coordination mechanism for fresh agri-food supply chain with option contracts

Kybernetes ◽  
2019 ◽  
Vol 48 (5) ◽  
pp. 1134-1156 ◽  
Author(s):  
Linan Zhou ◽  
Gengui Zhou ◽  
Fangzhong Qi ◽  
Hangying Li
Keyword(s):  
Supply Chain ◽  
Information Sharing ◽  
Food Supply ◽  
Coordination Mechanism ◽  
Uncertain Demand ◽  
Channel Coordination ◽  
Food Supply Chain ◽  
Content Type ◽  
Option Contract ◽  
Demand Information

Purpose This paper aims to develop a coordination mechanism that can be applied to achieve the channel coordination and information sharing simultaneously in the fresh agri-food supply chain with uncertain demand. It seeks to elucidate how the producer can use an option contract to transfer the risk caused by uncertain demand, impel the retailer to share demand information and improve the performance of supply chain. Design/methodology/approach An option contract model based on the basic model of fresh agri-food supply chain is introduced to compare the production, profit, risk and information sharing condition of the supply chain in different cases. In addition, a case study focusing on the sale of autumn peaches produced by a local producer is investigated, which provides evidence of the applicability of the authors’ approach. Findings The optimal option contract can help the supply chain achieve channel coordination and reach Pareto improvement. In the meantime, such a contract will encourage the retailer to share market demand information with producer spontaneously and help maintain the strategic cooperation between two parties. Research limitations/implications This paper considers a single-producer, single-retailer system and both of them are risk neutral. Practical implications Presented results can be used as suggestions for improving the contract design of fresh agri-food supply chain in China and can also provide references for other countries with similar experiences as China in fresh agri-food production. Originality/value This research introduces the option contract into fresh agri-food supply chain and takes information sharing and the risk caused by uncertain demand into consideration.

scholarly journals Cooperative Green Technology Innovation of an E-Commerce Sales Channel in a Two-Stage Supply Chain

2021 ◽  
Vol 13 (13) ◽  
pp. 7499
Author(s):  
Zongyu Mu ◽  
Yuangang Zheng ◽  
Hao Sun
Keyword(s):  
Supply Chain ◽  
Technology Innovation ◽  
Spillover Effect ◽  
Product Market ◽  
Free Riding ◽  
Green Technology ◽  
Market Demand ◽  
Two Stage ◽  
Sales Channel ◽  
Innovation Activities

The potential broad market of green consumption has encouraged an increasing number of enterprises to carry out green technology innovation activities. This paper examines a two-stage supply chain of e-commerce sales channels under different cooperative models. We find that consumers’ green preferences are the main factor that affects green product market demand. The manufacturer and the retailer can raise the levels of green technology innovation and extend green promotional services to expand product market demand in online and offline channels. However, consumers’ e-commerce preferences and online free-riding behaviors affect the manufacturer’s sales channel choice. The retailer can improve the level of green promotional services to hold offline channel market demand, while promotional behaviors have a positive/negative spillover effect on online market demand if the level of free riding falls above/below consumers’ e-commerce preferences. The higher the cooperative level is, the later the manufacturer will open the online channel and close the offline channel to ensure a high level of green promotional service from the cooperative retailer. The results show that the stronger the level of cooperation among all members is, the better the economic, ecological, and social benefits will be. Therefore, we design a revenue-cost sharing contract that can effectively motivate green technology innovation and green promotional services and afford all members win-win profits.

Dynamic pricing and coupon promotion strategies in a dual-channel supply chain based on differential game

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zonghuo Li ◽  
Wensheng Yang ◽  
Yinyuan Si
Keyword(s):  
Supply Chain ◽  
Differential Game ◽  
Dynamic Pricing ◽  
Brand Image ◽  
Content Type ◽  
Dual Channel ◽  
Promotion Policies ◽  
Promotion Strategies ◽  
Joint Pricing ◽  
Dual Channel Supply Chain

PurposeThis paper investigates a dual-channel supply chain in which a manufacturer offers coupons in the online channel and the retailer in the offline channel. The optimal pricing and coupon promotion policies are explored, and the brand image under different promotion scenarios is studied.Design/methodology/approachThree differential game models, namely no coupon is offered, coupons offered by the manufacturer and coupons offered by the retailer, are constructed.FindingsThe results show that the manufacturer and retailer intend to conduct coupon promotions under a large coupon redemption rate. Coupon promotion derives a higher price and profit for the issuers, and the manufacturer can free-ride on the retailer's coupon promotion. The retailer's profit in the retailer-promotion scenario may be lower than that in the manufacturer-promotion scenario in some special conditions. Besides, price, coupon face value, brand image and profit increase over time. After multiple cycles game, the operational strategy evolves to an optimal equilibrium status.Originality/valueThis paper provides guidance and advice for dual-channel supply enterprises to implement joint pricing and coupon promotion strategies under multiple sales seasons.

Contrasting supply chain traceability and supply chain visibility: are they interchangeable?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vivek Roy
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Information Sharing ◽  
Design Methodology ◽  
Relevant Literature ◽  
Future Research ◽  
Critical Element ◽  
Effective Management ◽  
Chain Management ◽  
Content Type

PurposeSupply chain traceability and supply chain visibility have become a critical element for the effective management of contemporary complex supply chains. At their core is information sharing, which has been acknowledged as a key prerequisite for logistics and supply chain performance, but whose notional underpinnings have not been delineated fully, leading to interchangeable deployment of these terms. Addressing the shortcoming, this paper aims to establish a contrast between the two notions.Design/methodology/approachDrawing from systematic review protocols, a multi-disciplinary review scope is constructed wherein the synthesis is strategized to primarily channel implications for the scholarship of logistics and supply chain management. The review is aimed at addressing two research objectives: (1) how the notions of traceability and visibility in supply chain management develop contrast in terms of their thematic emphasis and (2) to attain an integrative understanding of the notional convergence and divergence between supply chain traceability and visibility for raising strategic recommendations.FindingsThe review outcomes help contrast both the convergence and the divergence between traceability and visibility in the supply chain environment, and the differentiated but fundamental role that information sharing plays within these notions to outline why they are not interchangeable.Originality/valueThe originality of the findings lies in the conceptual synthesis of the relevant literature from both technological and non-technological perspectives to ultimately draw logistics and supply chain management implications. The review also points out key strategic considerations to demarcate the notional boundaries of traceability and visibility in future research.

scholarly journals Information Sharing and Channel Construction of Supply Chain under Asymmetric Demand Information

2014 ◽  
Vol 2014 ◽  
pp. 1-8 ◽  
Author(s):  
Guangdong Wu ◽  
Qingshan Kong ◽  
Jian-gang Shi ◽  
Hamid Reza Karimi ◽  
Wei Zhang
Keyword(s):  
Supply Chain ◽  
Information Sharing ◽  
Marketing Channel ◽  
Dominant Strategy ◽  
Theory And Practice ◽  
Management Theory ◽  
Force Model ◽  
Direct Channel ◽  
Structure Characteristics ◽  
Demand Information

Information sharing and marketing channel building have become an important problem of supply chain management theory and practice. The research of information sharing focused on traditional channel of supply chain between upstream and downstream enterprises; however, the research ignores the behavior of information sharing with potential entrants and composite structure characteristics about traditional marketing channel with the direct channel. This paper uses the model to research the effects brought about sharing demand information with potential entrants and building marketing channel, which reveals information sharing and channel building mechanism in the supply chain. The study found that the five-force model of Porter regards potential entrants only as a threat that is one-sided. When the channel competitiveness meets certain conditions, manufacturer and retailer will share demand information with potential entrants. Building composite marketing channel is the manufacturer's absolute dominant strategy. Channel construction will increase the entry barriers for potential entrants and weaken the effect of double marginalization; meanwhile, the performance of supply chain will be augmented.

scholarly journals Simulation Research on Information-Sharing Value of Two-Level Supply Chain

2021 ◽  
Vol 2021 ◽  
pp. 1-8
Author(s):  
Xiaheng Zhang ◽  
Zekai Lin ◽  
Lin Xiao
Keyword(s):  
Supply Chain ◽  
Performance Evaluation ◽  
Information Sharing ◽  
Chain Model ◽  
Simulation Research ◽  
Incentive Effect ◽  
Actual Evaluation ◽  
Demand Information ◽  
And Performance ◽  
The Impact

In the two-stage supply chain model, the incentive effect to the supplier’s sharing of demand information and performance evaluation and the effect of various parameters on the incentive effect of the supply chain are studied through a multiagent simulation model constructed for the purpose. It is found that the incentive coefficient of demand information-sharing degree, the number of selected suppliers, the order allocation coefficient, and the order proportion are positively related to the incentive effect of demand information sharing. So, the greater the demand information sharing is, the greater the impact of these parameters on the incentive effect is. Based on the demand information sharing, the supplier performance evaluation rules are shared, and when the actual evaluation rules are inconsistent with the supplier’s expectations, the incentive effect is further enhanced. Other parameters do not affect the incentive effect of demand information sharing and performance evaluation rule sharing.

The relationship between information sharing, informal contracts and trust on performance of supply chain management in the SMEs of batik

2018 ◽  
Vol 22 (3) ◽  
pp. 292-314 ◽  
Author(s):  
Aries Susanty ◽  
Norma Mustiana Sirait ◽  
Arfan Bakhtiar
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Data Collection ◽  
Information Sharing ◽  
Significant Positive Effect ◽  
Chain Management ◽  
Content Type ◽  
Informal Contracts ◽  
The Relationship ◽  
Positive Effect

Purpose The purpose of this study is twofold: to examine the effect of information sharing and contract on increasing the trust level in the relationship between the batik small- and medium-size enterprises (SMEs) and supplier and to examine the trust on performance of a supply chain related to the procurement of raw cotton fabric (mori). Design/methodology/approach This research used primary data collected through interviews and closed questionnaires using a five-point Likert scale. The sample included 65 people, including batik SME-owners in Pekalongan, a Central Java city. This research was conducted using partial least square (PLS) through SmartPLS 3.0 software to analyze the hypothesis. Findings The results of hypothesis testing indicate that trust between owners of SME and their suppliers has a significant positive effect on the performance of supply chain management (SCM). Strong trust between batik SME- owners with their suppliers will be beneficial for both parties. Among other things, trust can reduce unnecessary cost and activity, reduce the waiting time for the arrival of raw material, reduce the number of inventories and increase profit and customer satisfaction. This result has also show that information sharing and informal contract have a significant positive effect on trust between batik SME-owners and their mori suppliers. In this case, information sharing has a higher effect on trust compared to informal contract. Broader information was distributed to the batik SME-owners and their suppliers, resulting in stronger trust between them. Research limitations/implications The limitations of this study include the relatively small sample size and data collection method used to determine the effect of trust, the number of the antecedent variables of trust and the type of scale used to measure the performance of the supply chain. Suggestions for future research may include expanding the scope of the data collection to other regions in Indonesia; adopting a dyadic approach and longitudinal research in providing evidence on the effect of trust as a component of an interactive activity along the supply chain; adding other variables that contribute towards increasing the trust between SMEs and their suppliers (such as commitment); and enhancing the performance measurement of SCM by using a direct measure of financial and non-financial performance instead of recording the perception of the batik SME-owners. Practical implications As the scale of their business increases, it is better if the batik SMEs can enhance information sharing and informal contract with suppliers to promote the development of trust. In this case, to ensure that batik SMEs will have better information sharing from their supplier, it is better if the batik SME-owners using the criteria of supplier willingness to share detailed information when they select the new supplier. Then, to increase the role of contract on trust, it is better if owner of batik SME learn to understand the written contract processes and procedures as their business scale increases. Social implications The research confirms that information sharing, informal contract and trust between batik SMEs and their suppliers can have a positive effect on the performance of the supply chain. It may encourage more SMEs and suppliers in the batik industry to build better information sharing, informal contract and trust as a bottom line for the economic and non-economic growth of their business. Originality/value The conceptual model used in this study is original, built from past research about the relationship between information sharing, informal contract and trust on the performance of the supply chain. Besides, the selection of the sample is also original, which in this case is on the batik SMEs which have informal contracts. This case has still been rarely studied, and the research is therefore highly valuable.

Industry 4.0 technology provision: the moderating role of supply chain partners to support technology providers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guilherme Brittes Benitez ◽  
Mateus Ferreira-Lima ◽  
Néstor F. Ayala ◽  
Alejandro G. Frank
Keyword(s):  
Supply Chain ◽  
Customer Loyalty ◽  
Open Innovation ◽  
Industry 4.0 ◽  
Technology Innovation ◽  
Technology Development ◽  
Competitive Strategies ◽  
Content Type ◽  
Innovation Activities ◽  
Long Run

Purpose The provision of Industry 4.0 solutions demands a vast range of technology domains. To provide these solutions, small and medium-sized enterprises (SMEs) may need the support of different supply chain actors through an inbound open innovation strategy. The authors study the contribution of four types of supply chain actors for inbound open innovation: suppliers, competitors with complementary technologies, R&D centers and customers. The authors analyze how these four actors moderate the effect of integrated Industry 4.0 solutions on three main competitive strategies: cost, focalization and differentiation. Design/methodology/approach The authors conducted a survey on 77 SMEs from the automation sector, using OLS regression with moderating effects. They considered the integration of 15 technologies and 7 classic automation activities in the provision of Industry 4.0 solutions. The authors also studied three competitive outputs – technology cost reduction (cost), customer loyalty (focalization) and technology innovation (differentiation) – as well as four supply chain actors (moderators). Findings Expanding the provision of Industry 4.0 technologies increases customer loyalty and technology innovation. Collaboration with competitors (complementary technologies) leverage these results and reduce technology costs. Integration between customers and R&D centers elevates costs but R&D centers can foster long-run innovation. Originality/value This study is the first to empirically investigate inbound open innovation in the supply chain for technology development in the context of Industry 4.0. The authors discuss how these actors contribute to four inbound open innovation activities: technology scouting; horizontal technology collaboration; vertical technology collaboration; and technology sourcing.

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