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Article
Publication date: 26 October 2021

Patanjal Kumar, Dheeraj Sharma and Peeyush Pandey

An apparel supply chain primarily consists of geographically distant suppliers, manufacturers and retailers. The coordination among the members of the supply chain becomes…

Abstract

Purpose

An apparel supply chain primarily consists of geographically distant suppliers, manufacturers and retailers. The coordination among the members of the supply chain becomes difficult when we consider the triple bottom line of sustainability in it. Moreover, the complexity increases with the change in dominance power of the respective members. However, the task of managing the channel further becomes complicated after incorporating sustainability and dominance power simultaneously into the supply chain. To fill this gap, this paper focuses on designing of mechanism and demonstration of three-echelon model to coordinate sustainable supply chain.

Design/methodology/approach

In this paper, the noncooperative game theoretic method has been applied for the exploration of models. The various structures of the centralized and decentralized supply chain are considered on the basis of a player's dominance power. The model uses simultaneous and sequential move games to analyze optimal profit of supply chain agents, total channel profit, green innovation level and corporate social innovation level.

Findings

Analytical results show that simultaneous game performs better than the sequential game. The consumer sensitivity toward green and social innovations increases total channel profit. We also proposed a linear two-part tariff contract model. The proposed model enhances the sustainability level and leads to perfect channel coordination. Using a numerical example, we present the effectiveness of multiple game structures under centralized and decentralized settings. The results reveal that channel efficiency is the highest in the two-part tariff contract followed by a simultaneous move game structure and lower in the cases of sequential move game.

Research limitations/implications

In this research, model setting are deterministic and there is no any information asymmetry. Therefore researchers are encouraged to study multiechelon sustainable supply chain coordination models under stochastic and information asymmetry settings.

Practical implications

The paper includes implications for the development of sustainable supply chain coordination model to tackle the problems of dominance power, sustainability issues and lower channel efficiency of supply chain.

Originality/value

This study proposes game-theory-based three-echelon sustainable supply chain for the channel coordination.

Details

International Journal of Quality & Reliability Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-671X

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Article
Publication date: 14 May 2018

Qinghua Zhu, Xiaoying Li and Senlin Zhao

The purpose of this paper is to explore the coordination mechanism of cost sharing for green food production and marketing between a food producer and a supplier who both…

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1183

Abstract

Purpose

The purpose of this paper is to explore the coordination mechanism of cost sharing for green food production and marketing between a food producer and a supplier who both contribute to the sales of green food.

Design/methodology/approach

This paper first develops demand functions for both a food supplier and a producer, considering their influence on green degree of food and associated consumers’ acceptances. Then, cost-sharing contracts-based game models are proposed. At last, regarding to optimal supply chain profits and green performance, the proposed contracts and the non-coordination situation are compared and tested by a real case.

Findings

When green cost is only shared by one side, the cost-sharing contracts cannot optimally coordinate the food supply chain, but it can improve profits for both the supplier and producer. When consumers’ sensitivity to the green degree of food increases, a mutual cost-sharing contract will bring more profits for both the supplier and producer than those under the non-coordination mode in a decentralized supply chain situation. A real case verifies the conclusions.

Research limitations/implications

The models are in complete information, and the market demand is assumed to be linear to sales price. Mutual cost sharing is only for material processing and food production, which can be extended to include sharing for sales cost. Coordination ideas on the proposed contracts development and solutions for optimal decisions can be applied in the other industries.

Practical implications

The study shows that coordination between a supplier and a producer is needed to improve the food supply chain’s green performance.

Originality/value

This paper first extends the existing profit functions by considering the green efforts of both a supplier and a producer as well as their effects on green degree of products and consumers’ acceptances to the green degree.

Details

Industrial Management & Data Systems, vol. 118 no. 4
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 29 November 2018

Chetna Chauhan and Amol Singh

With rising environmental concerns, recent years have witnessed a significant surge of academic and corporate interest in green supply chain coordination (GSCC). This is…

Abstract

Purpose

With rising environmental concerns, recent years have witnessed a significant surge of academic and corporate interest in green supply chain coordination (GSCC). This is evident from the rise in channel coordination literature focused toward the elimination of sub-optimal in the green supply chain (GSC). This paper seeks to summarize the model-based research on coordination in GSCs with the help of a framework developed specifically for this paper. The purpose of this paper is to present an in-depth analysis of the widely used models in the area.

Design/methodology/approach

A review of literature is presented in this paper to examine the underlying concepts peculiar to GSCC. A classification framework is developed to present an exhaustive survey of commonly used concepts.

Findings

Around 90 percent of the papers on GSCC come from game theory (GT) application, which explicitly utilizes coordination through contracts. The review concludes prospective area of research in GSCC. The study posits that there exists a potential of creating a more rational and efficient coordination strategies to improve GSC’s operational performance, with the view of the optimum distribution of resources and better environmental management.

Originality/value

To the best of authors’ knowledge, this is the first state-of-the-art review of GSCC literature focused primarily on mathematical model-based literature. This review identifies various methodological and content-oriented characteristics of GSCC. The paper also opens avenues of future research.

Details

Benchmarking: An International Journal, vol. 25 no. 9
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 2 October 2009

Paul Hong, He‐Boong Kwon and James Jungbae Roh

The purpose of this paper is to present a research model that defines the inter‐relationships between strategic green orientation, integrated product development, supply

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4885

Abstract

Purpose

The purpose of this paper is to present a research model that defines the inter‐relationships between strategic green orientation, integrated product development, supply chain coordination, green performance outcomes and business unit performance. This paper aims to address innovation issues by integrating strategic orientation, internal business practices, supply chain coordination, and performance outcomes measures.

Design/methodology/approach

The international data of 711 firms accessed through the International Manufacturing Strategy Survey (IMSS IV) are used to validate this model.

Findings

A firm's strategic green orientation involves past green practices, implementation of innovative environment improvement program and future commitment for environmental practices. This strategic green orientation is supported by a set of inter‐organizational innovation practices such as integrated product development practices, effective coordination of supply chain network and relevant and measurable performance outcomes.

Originality/value

The model, variables, empirical tests and results in this paper suggest a new understanding about strategic green orientation and its relationships with product development practices and supply chain coordination. The framework is intended both to explicitly inform senior executives of the importance of inter‐organizational innovation practices such as strategic green orientation in terms of past, present and future practices as well as to the factors that effectively implement such strategic direction and commitment. It is also intended to provide a lens with which further research can be directed to enhance environmental reputation and outcomes of firms through new product development practices and supply chain network coordination and the sustainable long‐term competitive advantages of the firms.

Details

European Journal of Innovation Management, vol. 12 no. 4
Type: Research Article
ISSN: 1460-1060

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Article
Publication date: 19 February 2020

Ata Allah Taleizadeh, Mahsa Noori-Daryan and Shib Sankar Sana

This paper aims to deal with optimal pricing and production tactics for a bi-echelon green supply chain, including a producer and a vendor in presence of three various…

Abstract

Purpose

This paper aims to deal with optimal pricing and production tactics for a bi-echelon green supply chain, including a producer and a vendor in presence of three various scenarios. Demand depends on a price, refund and quality where the producer controls quality and the vendor proposes a refund policy to purchasers to encourage them to order more.

Design/methodology/approach

In the first scenario, the members seek to optimize their optimum decision variables under a centralized decision-making method while in the second scenario, a decentralized system is assumed where the members make a decision about variables and profits under a non-cooperative game. In the third scenario, a cost-sharing agreement is concluded between the members to provide a high-quality item to the purchasers.

Findings

The performance of the proposed model is investigated by illustrating a numerical example. A sensitivity analysis of some key parameters has been done to study the effect of the changes on the optimal values of the decision variables and profits. From sensitivity analysis, the real features are observed and mentioned in this section.

Originality/value

This research examines the behavior of partners in a green supply chain facing with a group of purchasers whose demand is the function of a price, greenery degree and refund rate. This proposed mathematical model is developed and analyzed which has an implication in supply chain model.

Details

Journal of Modelling in Management, vol. 15 no. 4
Type: Research Article
ISSN: 1746-5664

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Article
Publication date: 20 June 2016

Liliyana Makarova Jørsfeldt, Hans-Henrik Hvolby and Vivi Thuy Nguyen

The purpose of the study is to develop an in-depth understanding of how supplier–buyer relationships, particularly in operational coordination, are affected when a company…

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2509

Abstract

Purpose

The purpose of the study is to develop an in-depth understanding of how supplier–buyer relationships, particularly in operational coordination, are affected when a company introduces an environmental sustainability target (CO2 emissions reduction) into its supply chain operations. The investigation focuses on the joint activities of the logistics function of the company (buyer) and the third-party logistics providers (3PLs) (suppliers).

Design/methodology/approach

This single-case study takes the perspective of a sustainability-conscious Danish company that outsources logistics services to 3PLs but maintains internal logistics as a boundary function. The value offering point/order penetration point (VOP/OPP) methodology is used.

Findings

The results showed that the introduction of sustainability led to the emergence of multiple decoupling points in both the demand and the supply chains. The logistics function therefore began to play the role of “integrator” across both the functions in the company and the organizations in the supply chain. The findings indicate the need to develop clear cross-functional and inter-organizational coordination mechanisms.

Research limitations/implications

This is a single-case study in a Danish context.

Practical implications

The study provides rich insights into managing the implementation of sustainability in supply chain operations, and it exemplifies how the VOP/OPP tool can be applied by 3PLs to develop sustainable offerings.

Originality/value

The current research on sustainable supply chain management takes into account the entire supply chain. In contrast, this study focuses on the logistics function. The VOP/OPP concept is used to capture the processes used in actual practice, and both the buyer and the supplier are considered potential co-producers of value.

Details

Strategic Outsourcing: An International Journal, vol. 9 no. 2
Type: Research Article
ISSN: 1753-8297

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Article
Publication date: 4 May 2020

Shan Chen, Fuli Zhou, Jiafu Su, Longxiao Li, Biyu Yang and Yandong He

The paper investigates firms' optimal pricing policies and green strategies in a dynamic green supply chain with consideration of different retail service strategies. The…

Abstract

Purpose

The paper investigates firms' optimal pricing policies and green strategies in a dynamic green supply chain with consideration of different retail service strategies. The purpose of the paper is to address the following research questions: (1) What are the optimal pricing policies and green strategies of the dynamic decentralized supply chain with the competitive or supportive retail service? (2) How does the dynamic consumer's perception of green product affect these equilibrium solutions?

Design/methodology/approach

The paper establishes the dynamic game models and then derives a firm's instantaneous and steady-state feedback equilibrium solutions in three scenarios as follows: (1) the integrated supply chain; (2) the decentralized supply chain with competitive retail service and (3) the decentralized supply chain with supportive retail service. Finally, we conduct numerical analyses to compare the firm's instantaneous and steady-state equilibrium solutions and profit in the three scenarios.

Findings

The theoretical and numerical analysis results suggest that the supportive retail service is less inefficient than the competitive retail service in the decentralized supply chain and that the types of retail service have no influence on the green strategy. Moreover, a firm's myopia leads to lowering the greenness degree, retail service level and severe price competition, resulting in economic losses. Consumers’ initial perception of greenness degree determines whether the retailer should adopt the skimming pricing strategy or penetration pricing strategy. Furthermore, only when consumers’ perception of greenness degree is higher than a threshold, will the manufacturer produce green product with positive greenness degree.

Originality/value

This is one of few studies on the effect of different types of retail service on horizontal competition in green supply chain. The extension of the static study by adopting differential game approaches provides researchers with a deeper understanding of the application of retail service in green supply chain.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 33 no. 1
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 29 October 2021

Junyi Wei and Chuanxu Wang

The objective of this paper is to investigate the impact of the information sharing of the dynamic demand on green technology innovation and profits in supply chain from a…

Abstract

Purpose

The objective of this paper is to investigate the impact of the information sharing of the dynamic demand on green technology innovation and profits in supply chain from a long-term perspective.

Design/methodology/approach

The authors consider a supply chain consisting of a manufacturer and a retailer. The retailer has access to the information of dynamic demand of the green product, whereas the manufacturer invests in green technology innovation. Differential game theory is adopted to establish three models under three different scenarios, namely (1) decentralized decision without information sharing of dynamic demand (Model N-D), (2) decentralized decision with information sharing of dynamic demand (Model S-D) and (3) centralized decision with information sharing of dynamic demand (Model S-C).

Findings

The optimal equilibrium results show that information sharing of dynamic demand can improve the green technology innovation level and increase the green technology stocks only in centralized supply chain. In the long term, the information sharing of dynamic demand can make the retailer more profitable. If the influence of green technology innovation on green technology stocks is great enough or the cost coefficient of green technology innovation is small enough, the manufacturer and decentralized supply chain can benefit from information sharing. In centralized supply chain, the value of demand information sharing is greater than that of decentralized supply chain.

Originality/value

The authors used game theory to investigate demand information sharing and the green technology innovation in a supply chain. Specially, the demand information is dynamic, which is a variable that changes over time. Moreover, our research is based on a long-term perspective. Thus, differential game is adopted in this paper.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

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Article
Publication date: 14 February 2018

Chiranjit Das and Sanjay Jharkharia

The purpose of this paper is to review the relevant literature on low carbon supply chain management (LCSCM) and classify it on contextual base. It also aims at…

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2567

Abstract

Purpose

The purpose of this paper is to review the relevant literature on low carbon supply chain management (LCSCM) and classify it on contextual base. It also aims at identifying key decision-making issues in LCSCM. This paper also highlights some of the future challenges and scope of research in this domain.

Design/methodology/approach

A content analysis is carried out by systematically collecting the literature from major academic sources over a period of 18 years (2000-2017), identifying structural dimensions and classifying it on contextual base.

Findings

There is an increasing trend of research on LCSCM, but this research is still in a nascent stage. All supply chain functions such as supplier selection, inventory planning, network design and logistic decisions have been redefined by integrating emissions-related issues.

Research limitations/implications

Limitation of this study is inherent in its unit of analysis. Only peer-reviewed journal articles published in English language have been considered in this study.

Practical implications

Findings of prior studies on low carbon inventory control, transportation planning, facility allocation, location selection and supply chain coordination have been highlighted in this study. This will help supply chain practitioners in decision making.

Originality/value

Though there are an increasing number of studies about carbon emission-related issues in supply chain management, the present literature lacks to provide a review of the overarching publications. This paper addresses this gap by providing a comprehensive review of literature on emissions-related issues in supply chain management.

Details

Journal of Manufacturing Technology Management, vol. 29 no. 2
Type: Research Article
ISSN: 1741-038X

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Article
Publication date: 6 July 2020

Arindam Ghosh, S P Sarmah and Radhey Krishna Kanauzia

Strict carbon-cap policy is one of the basic policies proposed by the regulatory bodies to reduce the anthropogenic greenhouse gas emission. The purpose of this paper is…

Abstract

Purpose

Strict carbon-cap policy is one of the basic policies proposed by the regulatory bodies to reduce the anthropogenic greenhouse gas emission. The purpose of this paper is to examine whether it is beneficial for a company to invest in green technology or not under the strict carbon-cap policy and for that a two echelon supply chain model is developed. This paper gives insight about judicious decision about investment on green technology.

Design/methodology/approach

Mathematical modeling approach has been adopted to understand the effect of investment on green technology. All the cost and emissions parameters have been derived and the total cost (TC) and total emission equations have been formulated mathematically. Two constrained mixed-integer nonlinear programming (MINLP) problems have been formulated and solved considering with or without green investment. Further, supply chain cost is optimized without carbon constraint to understand the effect of carbon constraint.

Findings

The investment in green technology can reduce the total supply chain cost. The study reveals that handling different parameters optimally can reduce both cost and emissions.

Originality/value

This paper tries to assess the effectiveness of green investment on technology under strict carbon-cap policy on a supply chain and, thereby, added value to the existing work. It examines the role played by various parameters under strict carbon-cap policy to draw insights, which will be beneficial for the academic community and managers.

Details

Benchmarking: An International Journal, vol. 27 no. 6
Type: Research Article
ISSN: 1463-5771

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