Supply chain channel coordination with triple bottom line approach

Abstract In this paper, we explore coordination of a sustainable risk-neutral supply chain that faces greening effort dependent demand. We propose a framework for exclusive distribution of sustainability responsibilities in a decentralised setting. We classify decentralised supply chain according to distribution of responsibilities for greening and social efforts. Our study demonstrates that greening and social responsiveness indices simultaneously influence all optimal parameters of a supply chain. We analyse generalised wholesale price and linear two-part tariff contracts for dyadic supply chains with triple bottom line objective. We demonstrate that a decentralised supply chain can be coordinated when the supplier is socially responsible.

[1]  Samir K. Srivastava,et al.  Network design for reverse logistics , 2008 .

[2]  Wenge Zhu,et al.  Green product design in supply chains under competition , 2017, Eur. J. Oper. Res..

[3]  C. Blome,et al.  Sustainability in multi-tier supply chains: Understanding the double agency role of the first-tier supplier , 2016 .

[4]  Chang Hwan Lee,et al.  Used intimate apparel collection programs: A game-theoretic analytical study , 2018 .

[5]  Kannan Govindan,et al.  Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future , 2015, Eur. J. Oper. Res..

[6]  Henri Servaes,et al.  The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness , 2012, Manag. Sci..

[7]  Christopher S. Tang,et al.  Designing Supply Contracts: Contract Type and Information Asymmetry , 2004, Manag. Sci..

[8]  Cheng-Tang Zhang,et al.  Research on coordination mechanism in three-level green supply chain under non-cooperative game , 2013 .

[9]  J. Tirole.  The Theory of Industrial Organization , 1988 .

[10]  John Elkington,et al.  Partnerships from cannibals with forks: The triple bottom line of 21st‐century business , 1998 .

[11]  Che-Fu Hsueh.  Improving corporate social responsibility in a supply chain through a new revenue sharing contract , 2014 .

[12]  Armin Jabbarzadeh,et al.  Marrying supply chain sustainability and resilience: A match made in heaven , 2016 .

[13]  Jianteng Xu,et al.  A two-echelon sustainable supply chain coordination under cap-and-trade regulation , 2016 .

[14]  Sanjeev Swami,et al.  Channel coordination in green supply chain management , 2013, J. Oper. Res. Soc..

[15]  Janat Shah,et al.  Supply chain analysis under green sensitive consumer demand and cost sharing contract , 2015 .

[16]  Hans-Otto Günther,et al.  Sustainable development of global supply chains—part 1: sustainability optimization framework , 2014 .

[17]  Kevin W. Li,et al.  Social responsibility allocation in two-echelon supply chains: Insights from wholesale price contracts , 2010, Eur. J. Oper. Res..

[18]  S. Goyal,et al.  Channel coordination and profit distribution in a social responsible three-layer supply chain , 2015 .

[19]  Balram Avittathur,et al.  Impact of structure, market share and information asymmetry on supply contracts for a single supplier multiple buyer network , 2016, Eur. J. Oper. Res..

[20]  Samir K. Srivastava,et al.  Green Supply-Chain Management: A State-of-the-Art Literature Review , 2007 .

[21]  Hans-Otto Günther,et al.  Sustainable development of global supply chains—part 2: investigation of the European automotive industry , 2014 .

[22]  Subrata Saha,et al.  Strategic inventory: Manufacturer vs. retailer investment , 2018 .

[23]  Hing Kai Chan,et al.  Manufacturer and retailer coordination for environmental and economic competitiveness: A power perspective , 2017 .

[24]  I. Biswas,et al.  Designing supply contracts for the sustainable supply chain using game theory , 2018, Journal of Cleaner Production.

[25]  Socially Responsible Firms and Endogenous Choice of Strategic Incentives , 2012 .

[26]  Shibaji Panda.  Coordination of a socially responsible supply chain using revenue sharing contract , 2014 .

[27]  Peng Ma,et al.  Enhancing corporate social responsibility: Contract design under information asymmetry ☆ , 2017 .

[28]  Marcus Brandenburg,et al.  Quantitative models for sustainable supply chain management: Developments and directions , 2014, Eur. J. Oper. Res..

[29]  Dincer Konur,et al.  Non-collaborative emission targets joining and quantity flow decisions in a Stackelberg setting , 2017 .

[30]  Marcus Brandenburg,et al.  Sustainable supply chain management: a modeling perspective , 2015, Annals of Operations Research.

[31]  Stefan Seuring,et al.  A review of modeling approaches for sustainable supply chain management , 2013, Decis. Support Syst..

[32]  Janat Shah,et al.  A comparative analysis of greening policies across supply chain structures , 2012 .

[33]  Timothy F. Slaper,et al.  The Triple Bottom Line: What Is It and How Does It Work? , 2011 .

[34]  M. Lee.  A Review of the Theories of Corporate Social Responsibility: Its Evolutionary Path and the Road Ahead , 2008 .