Dual-Channel Supply Chain Coordination Considering Green and Service Inputs

Abstract

The rise of the green economy and the dual-channel model has led to consumer preferences for a model that is both green and service-based. At the same time, customer service expectations have led to greater uncertainties in corporate decision-making. However, many research gaps remain in terms of how green and service-based models work together in a dual-channel supply chain to influence operational decisions and achieve efficiency improvements. Therefore, while considering customer expectations, this study adopts Stackelberg game theory to construct a dual-channel supply chain analysis that considers green and service inputs and analyzes the optimal decisions of manufacturers and retailers. The results show that when the costs of green inputs are low, this increases the greenness and prices of green products while also stimulating the retailer to improve service levels and common product prices. When the retailer’s service costs are low, this promotes higher service levels and product prices but inhibits product greenness and green product prices in the online channel. In addition, centralized decision-making is associated with higher product greenness, which is beneficial from an environmental perspective. Numerical analysis further reveals that profit-sharing contracts can be effective in achieving supply chain coordination. These findings have reference significance for the coexistence and interaction of green and service-based factors in dual-channel supply chains, as well as provide a reference value for the impact of customer service expectations on supply chain-related decision-making.