Applied Mathematics and Nonlinear Sciences
Journal license

Journal

Applied Mathematics and Nonlinear Sciences


Volume
& Issue

Volume 7, Issue 1


Published
on

October 14, 2022


Pages

909-926


DOI

Article

Optimal decisions and channel coordination of a green supply chain with marketing effort and fairness concerns

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Authors

Fuyou Huang Affiliation:
Institute of Transportation Development Strategy & Planning of Sichuan Province, Chengdu 610041, China
, Dan Xiong Affiliation:
Sichuan Vocational and Technical College of Communications, Chengdu 611130, China
and Chao Ma Affiliation:
Hubei Key Laboratory of Power System Design and Test for Electrical Vehicle, Hubei University of Arts and Science, Xiangyang, 441053, China


Abstract

This paper addresses the optimal decisions and channel coordination issues in a green supply chain composed of a socially responsible manufacturer and a fair-mined retailer, where the manufacturer invests in advanced facilities/technologies to improve green quality of products, and the retailer exerts marketing effort to enhance market demand. We develop supply chain models under three scenarios: centralized system, wholesale price (WP) contract without fairness concerns, and WP contract with fairness concerns. Our results show that the retailer’s fairness behavior further causes a benefit for herself, while the manufacturer and the total supply chain to suffer. Moreover, a revenue-cost-sharing (RCS) contract is introduced to coordinate supply chain . We prove that a win-win outcome is reachable, and the RCS contract is applicable in practice.


Keywords

Channel coordination, Green supply chain, Marketing effort, Fairness concerns, 90B50


Citation

Huang, F., Xiong, D., & Ma, C. (2022). Optimal decisions and channel coordination of a green supply chain with marketing effort and fairness concerns. Applied Mathematics and Nonlinear Sciences, 7(1), 909–926. https://doi.org/10.2478/amns.2022.1.00100

Published by: Engineering Journals

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