Supply chain coordination model for green product with different payment strategies: A game theoretic approach. (25th March 2021)

• Record Type: Journal Article
• Authors: Ghosh, Prasanta Kumar; Manna, Amalesh Kumar; Dey, Jayanta Kumar; Kar, Samarjit
• Is Part Of: Journal of cleaner production. Volume 290(2021)
• Publication Date: 2021-03-25
• Subjects: Supply chain -- Greenness of product -- Sales effort -- Delay-in-payment -- Advance payment; Factory and trade waste -- Management -- Periodicals; Manufactures -- Environmental aspects -- Periodicals; Déchets industriels -- Gestion -- Périodiques; Usines -- Aspect de l'environnement -- Périodiques; 628.5
• DOI: 10.1016/j.jclepro.2020.125734
• Languages: English
• ISSNs: 0959-6526

Abstract

Abstract: In our world, pollution arising from various sources like factories and vehicles, threaten the very environment we live in. We should become more and more aware of the products that pose a threat to our environment because otherwise through our lack of awareness, we will ourselves contribute towards the distractions of our beloved and beautiful world. In this paper, we have bought into focus an work regarding making the supply chain of a product as green as we possibly can. We have developed a strategy based on the manufacturer's advanced payment policy as well as trade credit facility to the retailer. We have assumed that for any particular retailer, the customers' demand for his goods is a direct consequence of how green the goods are, along with the selling price and the effort put into the environment friendliness of a product. To this effect, the manufacturer also allows the retailer a credit period for the goods as also a discount that can imposed on the selling price. We have provided a model that optimizes the retailer's sales effort, the wholesale price demanded by the manufacturer, the green level of the product as well as the selling price effected by the retailers. This model is exemplified numerically of its practicality. We also perform some sensitivity analyses of the model by varying market demand, price elasticity coefficient, greening awareness level and sales effort and the corresponding performance shown by the model are also recorded. Graphical abstract: Image 1 Highlights: Single manufacturer, multi retailers' green supply chain model has been developed. Green level of the product, selling price and sales efforts dependent customer demand has been considered. The effects of different payment strategies during purchase of the product have been compared. The Stackelberg game approach has been used to maximize the average profits of supply chain members.