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<p>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.</p>
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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.

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

Hubei Key Laboratory of Power System Design and Test for Electrical Vehicle

Applied Mathematics and Nonlinear Sciences

This work is licensed under the Creative Commons Attribution 4.0 International License.

This paper addresses the optimal decisions and channel coordination issues in a green supply chain composed of a socially responsible manufacturer and a...

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

Published Online: Oct 14, 2022

Page range: 909 - 926

Received: Dec 01, 2020

Accepted: Jan 25, 2021

DOI: https://doi.org/10.2478/amns.2022.1.00100

Keywords
Channel coordination, Green supply chain, Marketing effort, Fairness concerns

© 2023 Fuyou Huang et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

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

Published Online: Oct 14, 2022

Page range: 909 - 926

Received: Dec 01, 2020

Accepted: Jan 25, 2021

DOI: https://doi.org/10.2478/amns.2022.1.00100

KeywordsChannel coordination, Green supply chain, Marketing effort, Fairness concerns

© 2023 Fuyou Huang et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Fig. 1

Fig. 2

Fig. 3

Keywords
Channel coordination, Green supply chain, Marketing effort, Fairness concerns