Decision Making in Green Supply Chain with Manufacturers’ Misreporting Behavior

Shengliang Zong, Chunyang Shen and Siping Su
Additional contact information
Shengliang Zong: School of Management, Lanzhou University, Lanzhou 730000, China
Chunyang Shen: School of Management, Lanzhou University, Lanzhou 730000, China
Siping Su: Department of Decision Sciences, College of Business and Economics, Western Washington University, Bellingham, WA 98225, USA

Sustainability, 2022, vol. 14, issue 9, 1-28

Abstract: To reduce the cost of energy conservation and emission reduction, some manufacturers will choose to misreport the green degree of their products, which may have some serious negative effects on the profit of the supply chain. To investigate the effects of the manufacturers’ misreporting strategy on the decisions and associated profit of the supply chain, we establish a two-period Stackelberg game model for a dual-channel manufacturer–retailer setting. Our results show that the manufacturers’ misreporting strategies lead to higher profits for them, which means that manufacturers tend to misreport the green degree of the products. However, the manufacturer’s misreporting strategy will put the retailer and the whole supply chain in a disadvantageous position and, hence, reduce the profit of the retailer and the whole supply chain. In addition, we also show that the manufacturer’s misreporting strategy only affects the greenness of the product and does not affect the pricing decisions of the manufacturer, the retailer and the whole supply chain. Finally, we design a revenue-sharing contract to achieve the coordination of the supply chain, which provides managerial insights for the decision makers of the supply chain.

Keywords: green supply chain; dual channel; misreporting; coordinate (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/9/4957/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/9/4957/ (text/html)

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:gam:jsusta:v:14:y:2022:i:9:p:4957-:d:798096

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().