Effects of government subsidies on green technology investment and green marketing coordination of supply chain under the cap-and-trade mechanism

This study explores the optimal pricing and investment decision for two competing green supply chains, both consisting of a manufacturer and an exclusive retailer. Our focus is to explore, does the strategic integration decision with rivals at the horizontal level or with partners at the vertical level have any effect on green product types? The results reveal the following insights: retailer-retailer strategic integration at downstream level leads to a sub-optimal total supply chain profit and green quality level for a development-intensive green product. Two competing manufacturers can produce products at a higher level if they are vertically integrated with respective retailers. Manufacturer-manufacturer integration at upstream level sometimes leads to higher profits and product quality level if cross price-elasticity of consumers is high. However, an opposite phenomenon is observed while they are selling for a marginal-intensive green product, horizontal integration can improve green quality levels, but supply chain members will receive a lower profit. Therefore, selection of green product types and strategic integration decision are interrelated to achieve the profit maximization goal along with the aim to offer products at a higher green quality level. Vertical integration strategy can outperform horizontal integration strategy, especially if cross-price elastic for green products remain high.

https://www.mdpi.com/2071-1050/12/24/10248/pdf

Impact of strategic cooperation under competition on green product manufacturing

The purpose of this research is to examine the green supply chain (GSC) financing decisions of manufacturers and capital-constrained retailers in order to establish a Stackelberg game model under decentralized and centralized decision-making. This paper studies the influence of retailers’ choice of trade credit or bank loan financing strategy on a GSC’s performance and analyzes their decision-making tendency. The results show that manufacturers should provide trade credit and participate in retailers’ financing decisions to avoid double marginal effects under both centralized and decentralized decision-making. Interestingly, the optimal value of green marketing effort and retailer order quantity was twice as high as the decentralized under the centralized decision, indicating that the centralized decision could better improve GSC’s financing efficiency. Especially when the trade credit financing strategy is feasible, this effect is more significant. Finally, the outcomes are verified through numerical simulation, which references GSC practitioners in management decisions.

https://www.mdpi.com/2071-1050/13/3/1357/pdf

Optimal Financing Strategy in a Capital-Constrained Supply Chain with Retailer Green Marketing Efforts

Due to the high demand for environmental sustainability and a green supply chain in recent years, industrial and service enterprises are striving to look for effective technologies and methodology to tackle the growing concerns and achieve environmental sustainability. Artificial Intelligence (AI) has emerged as one of the efficient techniques to enhance Green Supply Chain Management (GSCM) and achieve sustainable improvements. The study aims to explore and identify the main contribution of Artificial intelligence to GSCM growth and implementation through a systematic literature review. Five systematic processes are employed to evaluate and derive the latest published literature, using a set of inclusion and exclusion criteria to identify the papers in the GSCM field. The study addressed the research question and identified the most prominent AI technologies that contributed to GSCM. This paper provides insights through systematic analysis and synthesis through which researchers and practitioners will inspire to enhance GSCM growth. 

The Applications of AI in GSCM – A Systematic Literature Review

The increase in the world population and resource scarcity has led to the introduction of environmental concepts such as sustainability and sustainable supply chain design (SSCD). However, there is a lack of consensus among researchers on how to measure sustainability in SSCD. Therefore, the authors propose a novel approach to measuring sustainability in the context of SSCD by developing an integrated, tractable, and representative metrics framework. The methodology corresponds to a quantitative approach involving bibliographic examination and statistical techniques. First, the authors conducted a systematic literature review by formulating research questions and a search protocol, searched for relevant articles, and conducted a quality assessment on full-text reviews to obtain metrics for measuring sustainability in SSCD from the literature. Then, they defined aggregation criteria representing their inclusion relationship by merging associated metrics. The authors then used Cluster Analysis (CA), a multivariate statistical technique, for grouping the metrics. Consequently, twelve clusters were distinguished from 541 research articles, grouping 51 metrics from different sustainability dimensions. It shows the strong connection among the sustainability dimensions, i.e., they must be assessed holistically. Then, we proposed reducing the 51 metrics to 5 to evaluate sustainability in the SSCD, allowing us to focus on a reduced number of indicators.

/pdf/how-to-measure-sustainability-in-the-supply-chain-design-an-3juw5olr.pdf

How to Measure Sustainability in the Supply Chain Design: An Integrated Proposal from an Extensive and Systematic Literature Review

This paper focuses on coordination issues related to the green supply chain with capacity constraints and green marketing efforts. We build a two-stage green supply chain, in which the upstream manufacturer has a certain amount of installed capacity to produce green product, yet can expand its capacity through a Cloud Manufacturing (CM) Platform once its existing capacity becomes insufficient, while the downstream retailer expends green marketing effort to promote the green product. In particular, we analyze the interaction between the capacity expansion options of the manufacturer and the green marketing efforts of the retailer. Aiming to mitigate the inefficiency under a decentralized green supply chain, we design a contract that combines cost-sharing and revenue-sharing in green marketing in order to coordinate the supply chain. The results show that: (1) when the manufacturer’s existing capacity falls below a certain threshold, it will choose to expand its capacity. The threshold is related to existing capacity, capacity expansion cost coefficient, green marketing cost coefficient, and sensitivity coefficient of demand to green marketing. (2) Under low capacity, if the capacity expansion cost coefficient is large, a higher consumer environmental awareness or preference for green products will weaken the retailer’s motivation for expending green effort. (3) A contract for cost-sharing and revenue-sharing in green marketing can fully coordinate the green supply chain, whereby the two share proportions are equal and meet certain constraints.

https://www.mdpi.com/2071-1050/11/20/5734/pdf

Supply Chain Coordination in the Context of Green Marketing Efforts and Capacity Expansion

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Supply Chain Coordination in the Context of Green Marketing Efforts and Capacity Expansion