TITLE:
Research on Two-Echelon Green Supply Chain Decision under Government Subsidy
AUTHORS:
Shilin Zhan, Zhengang Shu, Hao Jiang
KEYWORDS:
Green Product, Consumer Green Sensitivity, Game Decision, Supply Chain Coordination
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.8 No.3,
March
9,
2018
ABSTRACT: With the background of
government subsidies and increasing consumer environmental awareness, this
article establishes a two-echelon supply chain model of manufacturer and
retailer. Based on this model, this article analyzes the decision-making
problems of manufacturer and retailer under both decentralized and centralized
decision modes, and the impact of consumer green sensitivity on product
pricing, green degree and other decisions. The results show that government
subsidies, higher consumer green sensitivities are conducive to green product
promotion and members of decentralized decision supply chain, but higher
consumer green sensitivity will reduce the overall supply chain profit in a
centralized decision mode. Finally, this paper discusses the design of supply
chain contract mechanism in decentralized decision mode to achieve supply chain
coordination.