TITLE:
Consumer Environmental Awareness and Coordination in Closed-Loop Supply Chain
AUTHORS:
Yongmei Xu, Huaizhi Xie
KEYWORDS:
Closed-Loop Supply Chain, Consumer Environmental Awareness, Products’ Eco-Friendly Level, Coordination, Revenue Sharing Contract
JOURNAL NAME:
Open Journal of Business and Management,
Vol.4 No.3,
July
1,
2016
ABSTRACT: Considering the impact of products’ eco-friendly level on demand, a two-stage closed-loop supply
chain composed by a single manufacturer and a single retailer is constructed. Under both decentralized
and centralized decision-making models, the paper deeply researches into the difference
of supply chain system in economic benefits, environmental protection and social benefits, and a
revenue sharing contract is applied to realize coordination between the manufacture and the retailer.
The results show that the system of supply chain in centralized decision-making model is
more efficient than that in decentralized decision-making model in economic benefits, environmental
protection and social benefits, and the revenue sharing contract can coordinate the supply
chain very well. Under two decision-making models, the products’ eco-friendly level, return rate
and profit of the node enterprise are positively correlated to the consumer environmental awareness,
and negatively correlated to the price sensitivity as well as the cost parameter of green investment;
the price is positively correlated to the scaling parameter of collecting and handling;
return rate and profit of the node enterprise are negatively correlated, and products’ eco-friendly
level is irrelevant.