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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.

This paper considers the supply chain composed of altruistic retailers and selfish manufacturers under risk aversion. We use the mean variance (MV) method to construct two types of behavior models. One is a two-stage supply chain model with a single manufacturer and a single retailer, and the other is a competitive supply chain model with two retailers and two manufacturers. We discuss the decision-making problems under manufacturer Stackelberg (MS) game and retailer Stackelberg (RS) game, respectively. We analyze the role of risk aversion and power structure. Results show that the more risk aversion manufacturers are, the lower the emission reduction levels are. It also find that the prices increase with power shift from retailers to manufacturers. Finally, we point out that the competing can help the firms earn more benefits via numerical studies.

This paper considers a low carbon supply chain consisting of a single manufacturer and a single retailer under the condition that the demand is uncertain. We first establish three games, including manufacturer Stackelberg (MS), retailer Stackelberg (RS) and Nash according to the different power structure of the firms. We then determine that the equilibrium stocking factors, emission reduction levels, wholesale prices and retail prices for the three models, respectively. After that, we demonstrate the effects of power structure. Results show that when the power shifts from the retailer to the manufacturer, the stocking factor decreases, whereas the wholesale price increases. Finally, we discuss the impacts of the random demand. We find that the expected profits of the firms, the emission reduction levels and the retail prices are increasing with respect to the market potential and low-carbon sensitivity coefficient, respectively. Meanwhile, they decrease with respect to the price sensitivity coefficient.

This paper deals with a one-period two-stage supply chain, in which a loss-averse retailer facing stochastic demand orders products from a risk-neutral supplier subject to yield uncertainty. Marketing effort exerted by the retailer is employed to enhance the final market demand. We first establish a performance benchmark, and show that the wholesale price contract fails to coordinate the supply chain due to the effects of double marginalization and loss aversion. Then we propose a revenue-cost-sharing contract in order to achieve supply chain coordination. It is verified that a properly designed revenue-cost-sharing contract can achieve perfect coordination and a win-win outcome synchronously. Our results reveal that it is simple to implement and arbitrarily allocate the total channel profit between the retailer and the supplier. In addition, we examine the effect of the retailer's loss aversion degree on contract parameters and profit allocation, and we show that both the retailer and the supplier can benefit from marketing effort. [ABSTRACT FROM AUTHOR]

Quality competition and risk aversion have become more and more common in today's many industries, making it a challenge to supply chain management and coordination. This paper considers a vendor-managed inventory (VMI) supply chain comprising two risk-averse manufacturers who sell their competing products through a common retailer. Market demand shared by each manufacturer is dependent on the quality level of its own product as well as on the competitor's product quality. The Conditional Value-at-Risk (CVaR) criterion is employed to formulate the risk aversion of manufacturers. This study first develops basic models without coordination mechanism and analyzes the effect of the quality sensitivity, competition intensity, risk aversion degree and cost coefficient of quality improvement on equilibrium decisions and supply chain efficiency. Further, a combined contract composed of option and cost-sharing is proposed to investigate the supply chain coordination issue. The results reveal that the combined contract can coordinate the supply chain and achieve a win-win outcome only when the manufacturers are low in risk aversion, and the system-wide profit of the supply chain can be allocated arbitrarily only by the option price. Also, this research examines the effect of the quality sensitivity, competition intensity, risk aversion degree and cost coefficient of quality improvement on the feasible region of option price. [ABSTRACT FROM AUTHOR]