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Title The Optimal Product-Line Design And Incentive Mechanism In A Supply Chain With Customer Environmental Awareness
ID_Doc 18963
Authors Li, ZT; Zhang, CH; Kong, W; Lyu, RX
Title The Optimal Product-Line Design And Incentive Mechanism In A Supply Chain With Customer Environmental Awareness
Year 2023
Published Journal Of Industrial And Management Optimization, 19.0, 1
Abstract Due to the increasing awareness of sustainable development, the manufacturer's product-line design gets wide attention. Nowadays, the traditional manufacturer that produces non-green products is considering whether to introduce upgraded green products. This paper studies the manufacturer's optimal product-line design considering the quality difference between non green and green products. Besides, our model also investigates the difference in unit production cost, green research and development (R&D) investment, and market segmentation. The results show that, from the manufacturer's perspective, producing green products is a better choice when non-green products are of low quality. In addition, the retailer is always inclined to sell green products. Further, the consumers' preference for non-green and green products is divided. And the consumer surplus under different product-line designs is analysed. Finally, two contracts are proposed and compared to encourage the manufacturer to produce green products.
PDF https://www.aimsciences.org/data/article/export-pdf?id=729192d8-7aef-4e9f-a5dc-f7f3249a6003

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