Optimal Decision-Making of Green Supply Chain with Complementary Products

Huailiang Zhang ()
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Huailiang Zhang: China University of Mining and Technology, School of Economics and Management

A chapter in Proceedings of the 2023 4th International Conference on Management Science and Engineering Management (ICMSEM 2023), 2024, pp 1262-1273 from Springer

Abstract: Abstract Green supply chain management has received increased attention in recent years as a result of government regulation and increased consumer awareness of environmental protection, and firms invest in green products to meet the new competitive market conditions. In this paper, a supply chain model is developed for two types of green products, development-intensive green product and marginal cost-intensive green product, to explore the effects of differences in cost structure and complementary relationships between products on supply chain equilibrium results. Unlike most green supply chain management studies, two supply chains provide complementary products to the market. This paper finds that there is significant variability in the effect of market potential on manufacturers’ efforts to increase the greenness of their products. The marginal cost-intensive green product is more suitable for the manufacturer, irrespective of the size of the market potential. The main contribution of this paper is the inclusion of complementary product relationships in the field of green supply chain management and the exploration of the differences in the role of complementary relationships in the supply chains of different green product types.

Keywords: green product development; complementary products; pricing policy; green supply chain (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-256-9_129

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DOI: 10.2991/978-94-6463-256-9_129

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