Green Manufacturing Strategy Considering Retailers’ Fairness Concerns

Huanyong Zhang, Zhen Zhang, Xujin Pu and Yuhang Li
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Huanyong Zhang: Business School, Jiangnan University, Wuxi 214122, China
Zhen Zhang: Business School, Jiangnan University, Wuxi 214122, China
Xujin Pu: Business School, Jiangnan University, Wuxi 214122, China
Yuhang Li: Business School, Nankai University, Tianjin 300071, China

Sustainability, 2019, vol. 11, issue 17, 1-22

Abstract: This paper addresses the problem of green manufacturing decision making for a green dual-channel supply chain (SC). In the investigated SC, the manufacturer will decide whether to adopt green manufacturing under the influence of the retailer’s fairness concern-based dual-channel. Thus, we discuss two decision scenarios: the no green manufacturing strategy with retailer fairness ( NM model), and green manufacturing with retailer fairness ( GM model). Our study has several findings: Firstly, adopting a green manufacturing strategy is not always beneficial to supply-chain members when a retailer has fairness. In particular, when fairness is at a relatively high level, the manufacturer will not adopt green manufacturing. Secondly, under green manufacturing, the product’s green degree and subsidies have a positive impact on the price and demand and the members’ profit and utility. Besides, the subsidies and retailer fairness have a counter effect on the optimal decision. Thirdly, comparing the two scenarios ( NM & GM ), we found that the channel price of the GM model is lower than the NM model. Finally, from the perspective of the supply chain system, the system tends toward the manufacturer adopting green manufacturing and maintaining retailer fairness concerns at a lower level.

Keywords: fairness concern; dual-channel; green manufacturing; pricing decisions (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:11:y:2019:i:17:p:4646-:d:261151

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