scholarly journals Exclusivity or Competitor Retail? Impacts of Channel Structures on Multinational Supply Chains considering Green Manufacturing

2021 ◽  
Vol 2021 ◽  
pp. 1-21
Author(s):  
Luqing Rong ◽  
Maozeng Xu ◽  
Xiaofeng Chen ◽  
Qian Wen
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Green Manufacturing ◽  
Marketing Channel ◽  
Revenue Sharing ◽  
Analytical Framework ◽  
Green Supply Chain ◽  
Revenue Sharing Contract ◽  
Corporate Social ◽  
Competitive Structure

The development of green supply chains by multinational manufacturers (MNMs) in emerging markets promotes a better corporate reputation and competitive advantage. Selecting viable marketing channels will help reduce risks in overseas markets while positively impacting the green level and the stakeholders. This paper analyzes channel decisions under different scenarios in a game analytical framework and identifies that both exclusive and competitive channels promote the green supply chain, and that the latter leads to a higher green level and benefits the local manufacturer. Whatever profit-seeking or corporate social responsibility- (CSR-) seeking follows, the MNM prefers the competitive channel when the green research and development (R&D) investment coefficient is relatively low and vice versa for the exclusive channel. Moreover, transaction cost undermines the green supply chain, the competitive structure lowers the loss of greenness, and the exclusionary mode raises the MNM’s profits. Another interesting finding is when subsidies are offered by the importing country, the competitive structure is more conducive to the green and the participant’s gains, while the exclusive structure is detrimental to the green and only advantageous for the domestic manufacturer’s benefits. Besides, the revenue-sharing contract results in a higher green level of the supply chain in the channels than before, but the MNM tends to select the exclusive marketing channel with a relatively lower green level due to the profits. Subject to the findings, we propose an improved revenue-sharing contract that achieves the MNM’s competitive retailing option and ensures the emergence of the manufacturers’ win-win solution.

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.

Supply Chain Network Equilibrium Model Based on Corporate Social Responsibility with Multicriteria under the Revenue-Sharing Contract

2012 ◽  
Vol 452-453 ◽  
pp. 282-288 ◽  
Author(s):  
Yan Huo
Keyword(s):  
Corporate Social Responsibility ◽  
Supply Chain ◽  
Social Responsibility ◽  
Equilibrium Model ◽  
Revenue Sharing ◽  
Social Utility ◽  
Network Equilibrium ◽  
Supply Chain Network ◽  
Revenue Sharing Contract ◽  
Corporate Social

This paper developed a three-level supply chain network equilibrium model with multi products and multicriteria based on corporate social responsibility through integrating the maximization of economic benefits, the maximization of social utility and the minimization of environment pollution under revenue-sharing contract. We analysed competitive behaviour of manufactures and retailers in a no cooperative competitive and described the multicriteria decision-making behaviour using Nash equilibrium theory and the weighted value function. Using product utility functions of brand differentiation and consumer preferences from product price, transaction cost and corporation social responsibility to analyse product choice in a market, and we developed the optimization conditions of each tier and whole network by variational inequality method. At last we illustrated the model with several numerical examples.

scholarly journals Channel Structure Strategies of Supply Chains with Varying Green Cost and Governmental Interventions

2019 ◽  
Vol 12 (1) ◽  
pp. 113
Author(s):  
Deyan Yang ◽  
Jinyong Wang ◽  
Dongping Song
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Green Manufacturing ◽  
Channel Structure ◽  
Green Supply Chain ◽  
Manufacturing Cost ◽  
Retail Prices ◽  
Governmental Intervention ◽  
Demand Sensitivity ◽  
The Impact

Environmental concerns make enterprises pay more attention to green manufacturing. The emerging green supply chain inevitably will compete with the traditional supply chain. In order to evaluate the competitiveness of supply chains and the impact on channel structure strategy, we develop four game models for two competing supply chains according to their channel structure strategies. Green marginal manufacturing cost, demand sensitivity of green level, and governmental interventions are considered. We study how retail prices, green levels, and profits are influenced by channel structure choice and governmental interventions. Analytical results indicate that the substitutability of products affects channel structure strategy. When the substitutability of products is relatively low, centralization–centralization is the unique Nash equilibrium. However, when the substitutability of products is relatively high, both centralization–centralization and decentralization–decentralization are the Nash equilibriums. Centralization–centralization is a prisoner dilemma, while decentralization–decentralization can make the green supply chain achieve optimal profit. Then, the green marginal manufacturing cost and demand sensitivities of the green level play important but different roles in channel structure strategy of the competing supply chains. Further, whether Nash equilibriums are the optimal strategy depends on governmental intervention. Relatively severe governmental intervention might realize a relatively higher green level, but may not always achieve the lowest retail price for the green supply chain. However, a relatively moderate governmental intervention might achieve a relatively lower green level.

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.

scholarly journals Contracting Fashion Products Supply Chains When Demand Is Dependent on Price and Sales Effort

2015 ◽  
Vol 2015 ◽  
pp. 1-7 ◽  
Author(s):  
Ying Wei ◽  
Liyang Xiong
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Wholesale Price ◽  
Revenue Sharing ◽  
Two Stage ◽  
Effort Level ◽  
Optimal Decisions ◽  
Fashion Products ◽  
Revenue Sharing Contract ◽  
Investment Level

This paper investigates optimal decisions in a two-stage fashion product supply chain under two specified contracts: revenue-sharing contract and wholesale price contract, where demand is dependent on retailing price and sales effort level. Optimal decisions and related profits are analyzed and further compared among the cases where the effort investment fee is determined and undertaken either by the retailer or the manufacturer. Results reveal that if the retailer determines the effort investment level, she would be better off under the wholesale price contract and would invest more effort. However, if the manufacturer determines the effort level, he prefers to the revenue-sharing contract most likely if both parties agree on consignment.

scholarly journals A Multi-Objective Optimization Model for Green Supply Chain Considering Environmental Benefits

2019 ◽  
Vol 11 (21) ◽  
pp. 5911 ◽  
Author(s):  
Jie Jian ◽  
Yu Guo ◽  
Lin Jiang ◽  
Yanyan An ◽  
Jiafu Su
Keyword(s):  
Supply Chain ◽  
Stackelberg Game ◽  
Revenue Sharing ◽  
Economic Benefits ◽  
Environmental Benefits ◽  
Green Supply Chain ◽  
Multi Objective Optimization ◽  
Multi Objective ◽  
Revenue Sharing Contract ◽  
Environmental Objectives

Whether the upstream and downstream members in a supply chain (considering environmental objectives) simultaneously stabilize economic benefits has become an important problem in the process of green development. However, few quantitative studies on green supply chains have considered environmental and economic benefits to realize multi-objective optimization. To study operation and cooperation strategies with a consideration of the different objective on the level of supply chain, we first establish a green supply chain game model with profit and environment objectives simultaneously considered by the manufacturer. Then, we analyze the multi-objective decisions of the supply chain members under centralized control using a manufacturer-led Stackelberg game and revenue-sharing contract. Using the manufacturer’s environmental preference as a variable, the effects of environmental benefits on the supply chain are also investigated. Finally, this study determines that the manufacturer’s profit will be reduced after considering the objective of environmental benefits, while the retailer’s profit, product greenness, and environmental benefits will be improved. Meanwhile, the total profit of the green supply chain will first increase and then decrease. In particular, a revenue-sharing contract can facilitate the coordination of multiple objectives; in this way, both the manufacturer and the retailer achieve higher profits and environmental benefits compared to a decentralized control condition, which is of great significance in achieving a win–win situation for the economy and the environment.

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