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Sustainable supply chain coordination under competition and green effort scheme

Author

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  • Seyyed-Mahdi Hosseini-Motlagh
  • Samira Ebrahimi
  • Abbas Jokar

Abstract

In supply chain (SC) context, many SC members make sustainability effort not only to help the environment but also promote the market demand. Under such a situation, effective strategies should be adopted to coordinate the members’ sustainability decisions such as carbon emission reduction and green effort decisions. This article makes contributions to the literature on SC coordination by proposing a novel model for coordinating sustainable supply chain (SSC) under competition. In this investigation, a manufacturer invests to reduce the carbon emissions and two retailers compete on investing in the green effort. Firstly, the profit of SSC members and optimal decisions are determined under the decentralised and centralised systems. Then, a three-party compensation-based contract is proposed for coordinating the SSC decisions and a Nash bargaining model is proposed to fairly share the surplus profit. The results indicate that the proposed contract not only improves the whole SSC profit and its members compared to the decentralised system, but also improves the whole SSC performance regarding sustainability. Therefore, the coordination contract is applicable and efficient from both economic and sustainability viewpoints.

Suggested Citation

  • Seyyed-Mahdi Hosseini-Motlagh & Samira Ebrahimi & Abbas Jokar, 2021. "Sustainable supply chain coordination under competition and green effort scheme," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 72(2), pages 304-319, February.
    • Handle: RePEc:taf:tjorxx:v:72:y:2021:i:2:p:304-319
    DOI: 10.1080/01605682.2019.1671152
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    Citations

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    Cited by:

    1. Shuiwang Zhang & Qianlan Ding & Jingcheng Ding, 2023. "Return Strategy of E-Commerce Platform Based on Green and Sustainable Development," Sustainability, MDPI, vol. 15(14), pages 1-18, July.
    2. Li, Qingying & Ma, Manqiong & Shi, Tianqin & Zhu, Chen, 2022. "Green investment in a sustainable supply chain: The role of blockchain and fairness," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 167(C).
    3. Di Wang & Daozhi Zhao & Fang Chen, 2023. "Research on Financing Strategy of Green Energy-Efficient Supply Chain Based on Blockchain Technology," Energies, MDPI, vol. 16(7), pages 1-23, March.
    4. Chauhan, Chetna & Kaur, Puneet & Arrawatia, Rakesh & Ractham, Peter & Dhir, Amandeep, 2022. "Supply chain collaboration and sustainable development goals (SDGs). Teamwork makes achieving SDGs dream work," Journal of Business Research, Elsevier, vol. 147(C), pages 290-307.
    5. Mandal, Anindya & Pal, Brojeswar, 2023. "Investigating dual-channel green supply chain considering refurbishing process and product recycling with environmental awareness effort," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 204(C), pages 695-726.
    6. Li Li & Weimin Li, 2022. "The Promoting Effect of Green Technology Innovations on Sustainable Supply Chain Development: Evidence from China’s Transport Sector," Sustainability, MDPI, vol. 14(8), pages 1-16, April.
    7. Ali Sabbaghnia & Jafar Heydari & Jafar Razmi, 2023. "Participative pricing and donation programs in a socially concerned supply chain," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(1), pages 146-164, January.
    8. Jianghua Wu & Zepeng Wang & Chenchen Zhao, 2023. "Effects of production capacity and substitutability on optimal pricing and inventory policies," Annals of Operations Research, Springer, vol. 326(1), pages 341-367, July.

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