Research on Pricing and Coordination of Dual-Channel Green Supply Chain

Author:

Li Yongfei1,Zhang Jin1,He Guiying1,Wei Songbo1,Zhang Yu2,Rehman Abdul2

Affiliation:

1. School of Modern Posts, Xi’an University of Posts and Telecommunications Xi’an, P. R. China

2. Department of Business Administration, ILMA University, Karachi, Pakistan

Abstract

In recent years, environmental pollution and resource waste have become the focus of heated discussion around the world. In order to realize green and sustainable development, the development of green supply chain (GSC) has attracted the attention of many scholars. The research object of this paper is the dual-channel green supply chain (DGSC) composed of online channels and offline channels. The supplier is the leader of the entire DGSC, and it needs to optimize the wholesale price of the product and the level of green investment to maximize its own benefit. In addition, the supplier also needs to establish contracts with network sales platform (NSP) and store sales platform (SSP) to increase the benefit of NSP and SSP, and ultimately increase the benefit level of the entire DGSC. Among them, we constructed a centralized decision (CD) model and a decentralized decision (DD) model, and obtained the optimal pricing, optimal greenness and optimal benefit of the supplier, NSP and SSP under the two models. We found that the benefits of SC members under the DD model are generally lower than those of the CC model. Therefore, we built contracts between the supplier, NSP and SSP to coordinate. Finally, we substituted specific parameters to verify the model. The following conclusions are drawn: (i) When consumers prefer online sales channels, it will positively affect the online sales price, online sales volume and greenness level of DGSC. At the same time, it negatively affects offline sales price and sales volume. (ii) The benefit of DGSC and the benefit of NSP, SSP, and the supplier show a phenomenon of decline first and then increase with respect to consumers’ preference for online sales channels. (iii) Under the coordination contract, the subsidy factor positively affects the benefits of the supplier and online and offline wholesale prices, and negatively affects the benefits of online platforms and physical stores.

Publisher

World Scientific Pub Co Pte Ltd

Subject

Industrial and Manufacturing Engineering,Strategy and Management,Computer Science Applications

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