Manufacturer and retailer coordination for environmental and economic competitiveness: A power perspective

Xu Chen, Xiaojun Wang*, Hing Kai Chan

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

149 Citations (Scopus)

Abstract

This study examines the role of power relationship and coordination in sustainable supply chain management. We investigate a two-echelon supply chain that consists of a manufacturer and a retailer whose Customer demand is carbon emission sensitive. Using the game-theoretic approach, we compare the equilibrium solutions under three supply chain power structures to analyse the effects of power relationship on supply chain decisions and sustainability performance. A two-part tariff contract is designed to coordinate the supply chain. The findings provide important managerial insights that can help firms develop a better understanding of power relationship and coordination in achieving sustainability goals.

Original languageEnglish
Pages (from-to)268-281
Number of pages14
JournalTransportation Research Part E: Logistics and Transportation Review
Volume97
DOIs
Publication statusPublished - 1 Jan 2017

Bibliographical note

Funding Information:
The first author is partially supported by National Natural Science Foundation of China (Nos. 71272128, 71432003), and Specialized Research Fund for the Doctoral Program of Higher Education (No. 20130185110006).

Publisher Copyright:
© 2016 Elsevier Ltd

Keywords

  • Game theory
  • Power relationship
  • Supply chain coordination
  • Sustainable supply chain

ASJC Scopus subject areas

  • Business and International Management
  • Civil and Structural Engineering
  • Transportation

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