Green Supply Chain Decision-making Considering Fairness Concern and Sales Efforts
With the intensification of the public environmental awareness and pursuit for higher quality of life,the concept of green consumption has become more popular among the people.Nowadays,manufactur-ers and retailers in green supply chains not only seek maximum profits but also consider the fairness of profit distribution.When a retailer or manufacturer perceives a mismatch between its input and returns,it will be aggrieved,which may subsequently affect its decision-making and future role in the green supply chain.Therefore,exploring the optimal decision-making of the green supply chain given consideration to the sales efforts and fairness concern of the supply chain members holds significant theoretical and practical impor-tance.A substantial amount of research work has been done on the decision-making and optimization of green supply chains,providing solid foundation for this paper.However,there are two areas that can be further ex-plored:first,when fairness concern is introduced into green supply chain research,the impact of retailer sales efforts on the decision-making of the green supply chain is rarely considered;second,in studies that do con-sider sales efforts in the green supply chain,there is little attention given to the irrational behavior factors of the supply chain members.In such light,this paper explores a two-tier green supply chain composed of a manufacturer practicing green production and a retailer making sales efforts.Considering three scenarios namely both parties being fairness-neutral,only the retailer being fairness concerned,and only the manufac-turer being fairness concerned,the paper employs a Stackelberg game model to analyze the optimal decision of the supply chain and investigate the effect of the fairness concern behavior and sales efforts sensitivity coef-ficient on the decision-making and profitability of the green supply chain.The research results indicate that the sales efforts sensitivity coefficient is positively correlated with the op-timal decision making of the green supply chain and the profits of the supply chain members,but fairness concerns will weaken this connection.The fairness concern of the retailer can lower the wholesale and retail prices,while the fairness concern of the manufacturer can raise the wholesale price and affect the retail price in manners dependent on the green efficiency of the product.The fairness concern of both the retailer and the manufacturer can reduce the sales efforts and green investments of the supply chain members,and a mem-ber's concern for its own fair treatment has more pronounced suppressive effect on the other party.The fair-ness concern of both the retailer and the manufacturer is detrimental to the profits of supply chain members and the supply chain as a whole,and only when the green efficiency of the product is relatively high can the fairness concern of the retailer benefit its own profit.The optimal decision-making,retailer profit,manufac-turer profit,and overall supply chain profit given high product green efficiency are all higher than the corre-sponding values when the green efficiency of the product is low.This research provides theoretical and practical foundation for green supply chain management,indicating how to optimize supply chain decision-making to achieve higher efficiency and profits while considering sales efforts and fairness concern.Future studies could expand this research to include scenarios involving nonlinear or stochastic demand,and also consider decision-making problems with multiple behavioral fac-tors present simultaneously.
green supply chainfairness concernsales effortsStackelberg game
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