Cooperation and coordination in green supply chain with R&D uncertainty

Feng Yang, Junjun Kong, Tianzhuo Liu and Sheng Ang

Journal of the Operational Research Society, 2022, vol. 73, issue 3, 481-496

Abstract: Considering the uncertainty of environmental R&D, we investigate a two-echelon supply chain consisting of a manufacturer who invests in green manufacturing to generate a probability of R&D success and a retailer who exerts green marketing to disclose information on the successful R&D outcome to consumers. We explore cooperation issues in green operations by analysing two modes: Decentralized mode where the two firms do not cooperate in green operations, and Cartelization mode where they cooperate as an integrated system to set their individual green decision. We find Cartelization mode increases the profitability for the whole supply chain and the manufacturer but not the retailer. Compared with Decentralized mode, the green supply chain in Cartelization mode cannot be Pareto-improved unless the manufacturer efficiently motivates the retailer to cooperate. Furthermore, we discuss coordination issues under these two modes and find the revenue-sharing contract has more flexibility when coordinating the cartelized supply chain.

Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://hdl.handle.net/10.1080/01605682.2020.1848359 (text/html)
Access to full text is restricted to subscribers.

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:taf:tjorxx:v:73:y:2022:i:3:p:481-496

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/tjor20

DOI: 10.1080/01605682.2020.1848359

Access Statistics for this article

Journal of the Operational Research Society is currently edited by Tom Archibald

More articles in Journal of the Operational Research Society from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().