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Green supply chain coordination model under environmental impact and conformance quality sensitive consumer demand

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  • Meng Zhang
  • Yongxi Yi
  • Chunyan Fu
  • Yuqiong Li

Abstract

Considering the financial coordination and investment cost sharing between the members, this paper studies the conformance quality improvement, carbon reduction, and green marketing optimal decisions of a green supply chain composed of one manufacturer and multiple retailers. The retailer is either cash‐strapped, cash‐rich, or both. By using the Stackelberg game method, we obtain the equilibrium results of the game in the three cases. The results show that financial coordination should be implemented between the manufacturer and the three types of retailers. However, only with the second type of retailer can cost‐sharing increase the profitability of both sides.

Suggested Citation

  • Meng Zhang & Yongxi Yi & Chunyan Fu & Yuqiong Li, 2023. "Green supply chain coordination model under environmental impact and conformance quality sensitive consumer demand," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1410-1435, April.
    • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:3:p:1410-1435
    DOI: 10.1002/mde.3755
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