scholarly journals A Green Supply-Chain Decision Model for Energy-Saving Products That Accounts for Government Subsidies

2019 ◽  
Vol 11 (8) ◽  
pp. 2209 ◽  
Author(s):  
Jian Xue ◽  
Ruifeng Gong ◽  
Laijun Zhao ◽  
Xiaoqing Ji ◽  
Yan Xu
Keyword(s):  
Game Theory ◽  
Decision Making ◽  
Supply Chain ◽  
Energy Conservation ◽  
Social Welfare ◽  
Energy Saving ◽  
Revenue Sharing ◽  
Green Supply Chain ◽  
Market Demand ◽  
Government Subsidies

Government subsidies are a common policy adopted to promote energy conservation and emission reduction. The decision-making that occurs within the green supply chain for energy-saving products under government subsidies is an area of great academic interest and game theory is becoming a popular tool in such research. In this paper, we examined centralized and decentralized decision-making models for the green supply chain and a coordinated decision-making model for revenue-sharing contracts based on game theory. We studied the effects of government subsidies on retail prices, energy conservation levels, market demand, supply chain profits, and social welfare for energy-saving products. We then compared the effectiveness of the three models using a numerical example. Our results revealed the range of contract parameters for which manufacturer and retailer profits increase. Our results show that government subsidies can significantly improve social welfare and promote the improvement of energy-saving products. Centralized decision-making generates higher profits than decentralized decisions and government subsidies were positively correlated with the level of energy conservation, product prices, and market demand. Revenue sharing contract coordination decisions can coordinate the supply chain and achieve the same effect as centralized decisions.

Revenue Sharing Contract of Green Supply Chain under Manufacturer Risk-Aversion

2014 ◽  
Vol 697 ◽  
pp. 482-487
Author(s):  
Shi Ying Jiang ◽  
Chun Yan Ma
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Risk Aversion ◽  
Stackelberg Game ◽  
Wholesale Price ◽  
Revenue Sharing ◽  
Green Supply Chain ◽  
Game Model ◽  
Product Price ◽  
Revenue Sharing Contract

Background on two stages green supply chain consisting of a manufacturer and a retailer, considering the degree of risk aversion and product greenness, consumer preferences and other factors, the centralized decision-making game model and manufacturer-leading Stackelberg game model are established.Then two game models are compared. The interaction of product greenness, wholesale price, product price,and risk aversion utility for manufacturers and retailers are also disscussed. Finally, the revenue sharing contract is applied to coordinate the green supply chain . The results show that:(1) In the centralized decision-making model, there is a critical value of the product green degree; (2)In manufacturer-leading Stackelberg game model, the higher the green degree of the product, the higher the manufacturer's wholesale price,and the wholesale price increases as risk aversion degree of manufacturers improves;(3)The revenue sharing contract can coordinate this type of green supply chain under manufacturers risk-averse.

Price premium effect, supply contracts and strategic decision making under environmental considerations

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vinay Ramani ◽  
Sanjeev Swami ◽  
Debabrata Ghosh
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Cost Sharing ◽  
Revenue Sharing ◽  
Green Supply Chain ◽  
Price Premium ◽  
Theoretic Approach ◽  
Content Type ◽  
Technological Adoption ◽  
Revenue Sharing Contract

Purpose The purpose of this paper is to study the impact of collaboration between supply chain entities in a dyadic setting where the manufacturer invests in greening and technology adoption effort leading to a price premium effect for the supply chain players. Design/methodology/approach The paper uses game theoretic approach to analyze the model of inter-firm interaction in a vertical channel setting consisting of a retailer and manufacturer. The paper studies strategic decisions of the channel members in a decentralized and centralized structure and extends this to decision making under contractual settings. Findings A two-part tariff completely coordinates the green supply chain, while a cost sharing and revenue sharing contract only achieve partial coordination. Nevertheless, a cost sharing, as well as a revenue sharing contract, increases the greening and technological adoption effort by the manufacturer while yielding the supply chain members a strictly larger profit. Furthermore, a revenue sharing contract in comparison to a cost sharing contract, leads to a larger greening and technological adoption effort by the manufacturer, lower wholesale and retail prices and a strictly larger profit for both the manufacturer and the retailer. Originality/value This paper contributes to the green supply chain pricing, technology and contract literature considering strategic interactions between a manufacturer and retailer in a supply chain under price premium effects of greening activities and technological advancements.

Contract coordination optimization of a multi-power supplier-single dominant grid supply chain in hybrid electricity market

2019 ◽  
Vol 119 (9) ◽  
pp. 1861-1887
Author(s):  
Zhenning Zhu ◽  
Lingcheng Kong ◽  
Jiaping Xie ◽  
Jing Li ◽  
Bing Cao
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Renewable Energy ◽  
Power Supply ◽  
Electricity Market ◽  
Revenue Sharing ◽  
Market Demand ◽  
Content Type ◽  
Revenue Sharing Contract ◽  
Green Power

Purpose In the hybrid electricity market, renewable energy power generator faces the uncertainty of power market demand and the randomness of the renewable energy generation output. In order to improve the grid-connected quantity of green power, the purpose of this paper is to design the pricing mechanism for renewable energy power generator with revenue-sharing contract in a two-stage “multi-single” electricity supply chain which contains a single dominant power retailer and two kinds of power suppliers providing different power energy species. Design/methodology/approach Considering the dual uncertainties of renewable energy power output and power market demand, the authors design the full-cooperative contract decision-making model, wholesale price contract decision-making model and revenue-sharing contract decision-making model to compare and optimize grid-connected pricing in order to maximize profit of different parties in power supply chain. Then, this paper performs a numerical simulation, discusses the existence of the equilibrium analytical solutions to satisfy the supply chain coordination conditions and analyzes the optimal contract parameters’ variation characteristics and their interaction relationship. Findings The authors find that the expected profits of the parties in the hybrid power supply chain are concave about their decision variables in each decision-making mode. The revenue-sharing contract can realize the Pareto improvement for all parties’ interest of the supply chain, and promote the grid-connected quantity of green power effectively. The grid-connected price will reduce with the increase of revenue-sharing ratio, and this impact will be greater on the renewable energy power. The greater the competition intensity in power supply side, the smaller the revenue-sharing ratio from power purchaser. And for the same rangeability of competition intensity, the revenue-sharing ratio reduction of thermal power is less than that of the green power. The more the government subsidizing green power supplier, the smaller the retailer sharing revenue to it. Practical implications Facing with the dual uncertainties of green power output and market demand and the competition of thermal power in hybrid electricity market, this study can provide a path to solve the problem of renewable energy power grid-connecting. The results can help green power become competitive in hybrid power market under loose regulations. And this paper suggests that the government subsidy policy should be more tactical in order to implement a revenue-sharing contract of the power supply chain. Originality/value This paper studies the renewable energy electricity grid-connected pricing under the uncertainty of power supply and market demand, and compares different contract decision-making strategies in order to achieve the power supply chain coordination. The paper also analyzes the competition between thermal power and renewable energy power in hybrid electricity market.

scholarly journals Study on Coordination and Optimization of Contract Farming Supply Chain Based on Uncertain Conditions

2020 ◽  
Vol 2020 ◽  
pp. 1-9
Author(s):  
Xinquan Liu ◽  
Xiaojing Shen ◽  
Ming You
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Revenue Sharing ◽  
Short Sales ◽  
Market Demand ◽  
Output Volatility ◽  
Contract Farming ◽  
Agricultural Output ◽  
Demand Volatility ◽  
Revenue Functions

As the transaction subject of contract farming, agricultural products are featured with a long production cycle and a short sales cycle, just like other perishable commodities. In the process of executing a contract, both the company and the farmer are running the risk of great uncertainty. This paper studies the coordination of agricultural supply chain in terms of the uncertainty of agricultural output and market demand. First of all, the random output volatility factor and the market demand volatility factor as two random variables are used to represent the uncertainty of the agricultural output and market demand, and revenue functions are set up, respectively, for the company and the farmer with the objective of maximizing expected returns. The theoretical derivation of these revenue functions proves that there is an optimal targeted yield in a centralized decision-making supply chain system and a single optimal solution that maximizes farmers’ revenue can be obtained in a decentralized one, but the centralized decision-making supply chain is superior to the decentralized and uncoordinated counterpart for overall benefit. Secondly, a revenue-sharing-plus-margin contract mechanism is proposed to coordinate income distribution between the two parties of the supply chain through the revenue-sharing coefficient and margin. Thirdly, calculation examples are given and solved by MATLAB based on the assumption that both the agricultural output volatility factor and the market demand volatility factor are uniformly distributed, and the theory and result are then verified consistently. Finally, the numerical analysis of the coordination mechanism of the revenue-sharing coefficient and the margin on both sides of the supply chain provides an optimal value range so that Pareto improvement on the company’s and the farmers’ income can be achieved.

scholarly journals Decision and Coordination in a Dual-Channel Three-Layered Green Supply Chain

Symmetry ◽  
2018 ◽  
Vol 10 (11) ◽  
pp. 549 ◽  
Author(s):  
Zilong Song ◽  
Shiwei He ◽  
Baifeng An
Keyword(s):  
Sustainable Development ◽  
Supply Chain ◽  
Environmental Performance ◽  
Fresh Produce ◽  
Green Supply Chain ◽  
Market Demand ◽  
Equilibrium Solutions ◽  
Sustainable Performance ◽  
Dual Channel ◽  
Social And Environmental Performance

This paper investigated, for the first time, the game and coordination of a dual-channel, three-layered, green fresh produce supply chain, with regard to its economic, social, and environmental performance. Considering that the market demand is dual-channel priced and sensitive to the degree of greenness and the freshness-level, four game models, under different scenarios have been established. These included a centralized scenario, a decentralized scenario, and two contractual scenarios. The equilibrium solutions under the four scenarios were characterized. From the perspective of a sustainable development, the economic, social, and environmental performance of the supply chain was analyzed. To enhance the supply chain performance, two contract mechanisms were designed and the conditions for a multi-win outcome were obtained. Accordingly, many propositions and management implications were provided. The results showed that, (1) compared to the centralized supply chain case, the performance of the decentralized supply chain case is inferior; (2) in addition to increasing the concentration of the supply chain decisions, the two contracts proposed can effectively coordinate the green supply chain and improve its sustainable performance; and (3) the performance of the supply chain is positively driven by the consumers’ sensitivity to greenness degree and the freshness level of fresh produce. This paper fills a research gap and helps the participants of the channel recognize the operational decision principle of a complex green supply chain, in order to achieve a higher and a long-term sustainable-development performance.

scholarly journals Decision-making for Green Supply Chain Considering Fairness Concern Based on Trade Credit

IEEE Access ◽  
2021 ◽  
pp. 1-1
Author(s):  
Haoxiong Yang ◽  
Enlu Shao ◽  
Yuanyuan Gong ◽  
Xiaolin Guan
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Trade Credit ◽  
Green Supply Chain ◽  
Fairness Concern

Conceptualisation, development and validation of green marketing orientation (GMO) of SMEs in India

2014 ◽  
Vol 5 (2) ◽  
pp. 312-337 ◽  
Author(s):  
Hardeep Chahal ◽  
Ramesh Dangwal ◽  
Swati Raina
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Energy Conservation ◽  
Green Marketing ◽  
Green Supply Chain Management ◽  
Green Supply Chain ◽  
Chain Management ◽  
Content Type ◽  
Marketing Orientation ◽  
Strategic Policy

Purpose – The purpose of the study is twofold. First, to examine the domain of green marketing construct in the context of small and medium enterprises (SMEs) operating in emerging economies (i.e. India) across electrical industries and, second, to assess its impact on the SMEs performance. Design/methodology/approach – All the owners of electrical industries (SMEs) operating in Jammu District, that is, 152, were contacted using census method. Findings – The study identifies and confirms five factors, namely, greening the process, green supply chain management, green strategic policy initiative, proactive energy conservation and green innovation of green marketing as important dimensions of green marketing orientation (GMO) scale. All the dimensions of the GMO scale have positive and significant impacts on performance of the firms. In addition, there exists stronger impact of green marketing dimensions on the customer business to business (B2B) satisfaction and employee retention. Research limitations/implications – The research has certain unavoidable limitations. First, the study is based on only one sector, that is, electrical industries operating in developing industrial region of India and hence future research is suggested to comprehend green marketing in other green-savvy manufacturing sectors like pharmaceutical sector and service sector like hotels and hospitals. Further, the study has focussed on the development of GMO scale and future studies need to extend research to include variables like green satisfaction, green trust and green loyalty to understand their mediating role in green marketing and performance relationship. Furthermore, the moderating role of variables such as nature and age of the SMEs can also be studied in future research. Practical implications – GMO allows managers to understand how their firms facilitate green environment and they affect the business outcomes. Furthermore, GMO takes into consideration all important aspects (greening the process, green supply chain management, green strategic policy initiatives, proactive energy conservation and green promotion) which provide better explanatory power and identification of priority areas for managerial attention. GMO can be used by managers to determine which strategies and practices will have the most positive influence on employees’ outcome. Originality/value – This paper can help managers in identifying the perspectives of GMO in electrical sector for the developing countries. Unlike the three dimensions confirmed by studies, this study established five dimensions of green marketing, namely, greening the process green supply chain management, green strategic policy initiatives, proactive energy conservation and green promotion.

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