Green product design in supply chains under competition

Wenge Zhu and Yuanjie He

European Journal of Operational Research, 2017, vol. 258, issue 1, 165-180

Abstract: In this paper, we investigate the green product design issues in supply chains under competition. Our research questions address how supply chains’ decisions on the “greenness” of products are affected by factors such as supply chain structures (centralized and decentralized), the green product types (development-intensive product or marginal-cost intensive product), and the types of competition (price competition and greenness competition). With a game-theoretic approach, our model starts with a simple supply chain with one manufacturer and one retailer. Then the model is expanded to include a horizontal retailer competition case and six cases of competing supply chains. Our results indicate that, 1. the distortion from a non-coordinated supply chain (the double marginalization effect) has counter-intuitive impact on the degree of product “greenness”; 2. supply chain price competition at the retailer level may positively influence the equilibrium greenness while the product greenness competition reduces the equilibrium greenness, and the joint impact from price and greenness competition on equilibrium greenness depends on the relative strength of the two types of competition.

Keywords: Development-intensive green product (DIGP); Marginal-cost intensive green product (MIGP); Green product development; Green supply chain design (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (172)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0377221716306920
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:258:y:2017:i:1:p:165-180

DOI: 10.1016/j.ejor.2016.08.053

Access Statistics for this article

European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().