Impact of demand forecast information sharing on the decision of a green supply chain with government subsidy

Wenbin Wang, Wanying Lin, Jianhu Cai () and Mengxue Chen
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Wenbin Wang: China University of Mining and Technology
Wanying Lin: China University of Mining and Technology
Jianhu Cai: Hangzhou Dianzi University
Mengxue Chen: China University of Mining and Technology

Annals of Operations Research, 2023, vol. 329, issue 1, No 33, 953-978

Abstract: Abstract This paper investigates a green supply chain (GSC) consisting of one manufacturer and one retailer who possesses private demand forecast information. To promote green consumption, the government may provide subsidies to consumers. Within a dynamic game where the manufacturer serves as the leader and the retailer acts as the follower, three cases are examined: centralized decision, decentralized decision with and without demand forecast information sharing between the retailer and the manufacturer. We mainly examine the value of information sharing on the decisions of a GSC in the context of government subsidies for consumers. We find that: (i) demand forecast information sharing benefits the manufacturer but damages the retailer; (ii) if the predicted value is higher than the determinate part of the demand, the manufacturer is willing to choose a higher green degree of products in the case with information sharing compared with that without information sharing; otherwise, the manufacturer is willing to choose a lower green degree of products; (iii) a two-part tariff contract is appropriate to coordinate the GSC and it is effective in increasing the green degree of products; (iv) information sharing benefits the GSC if the green production efficiency is high enough; (v) the ex-ante social welfare always increases with information accuracy. Finally, numerical analyses are conducted to verify the above findings.

Keywords: Green supply chain; Information sharing; Government subsidy; Coordination (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s10479-021-04233-7

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